Africa-Press – Uganda. President Museveni has advised courts against issuing injunction orders on public works to avoid stalling them.
Mr Museveni said in case of contention, especially about land ownership, projects should be allowed to continue, pending settlement claims.
He made the remarks while commissioning phase one of the Solana Lifestyle Residences, a housing project built by the National Social Security Fund (NSSF) in Lubowa, Wakiso District yesterday.
“These fraudstars who tell lies, we can amend laws to ensure that the project goes on even if someone is claiming it. … This issue of injunction is very disruptive. If you have got a case, let me continue with the project. If you win, in future, I can compensate you. We can study that one,” the President said.
His comments were in response to a submission by the NSSF managing director, Mr Richard Byarugaba, that contention over the land ownership had stalled the project by 15 years.
Mr Byarugaba, said while land was acquired in 2003, works could only commence in 2018 due to land wrangles.
Mr Museveni also tasked the Ministry of Finance to study possibilities of dealing with Value Added Tax on residential houses, since owners do not make a profit off the property.
He also tasked the Housing Finance Bank to improve mortgage financing to address challenges facing the housing industry.
About the project
The Solana Lifestyle Residencies is envisioned to be a self-sustaining city, sitting on 600 acres with approximately 3,000 housing units, complete with a school, hospital, Internet, recreation facilities, and other amenities.
Current data indicates that by 2050, half of the population in the country will be living in urban areas.
Mr Byarugaba said the project is aimed at providing decent and affordable housing.
Phase one comprises 306 units, including bungalows, apartments, and house villas, among others.
The units cost between $150,000 (Shs572m) and $800,000 (Shs3b), with a furnished three bedroom bungalow, going for between $200,000(Shs763m) and $300,000 (Shs1.1b).
There are concerns, however, that the houses are out of reach for the majority of Ugandans and NSSF members.
The Fund, valued at Shs17 trillion, has about 2.5 million members, but only 5 percent of these have balances above Shs50m, according to a June data.
Mr Peter Kimbowa, the NSSF board chairperson, said there are plans for projects that will offer units at lower costs, including one in Kyanja and Temangalo with more than 500 units.
Mr Byarugaba told journalists that the Fund has introduced the “rent to own” model, where savers can make a down payment, then pay rent until they meet the cost of the building then they are handed ownership.
He assured savers that the earnings from the house sales will drive up the interest rate on their benefits in the near future.
“We have been locking up our money in this investment and now that it is completed, we are going to start selling, make a profit and a return for our members, and the returns are in double digits,” Mr Byarugaba said.
Mr Museveni applauded the growth of the Fund to Shs17 trillion since its establishment in 1985, and urged Ugandans to embrace a saving culture
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