The Committee for Commissions, Statutory Authorities and State Enterprises-COSASE has launched investigations into a 13 billion Shillings pay out by National Housing and Construction Company (NHCC) to a private company.
In 2011, court ordered NHCC to pay 13 billion Shillings to Kireka Estates, an Asian-owned firm, which claimed ownership of the 292 acres of land in Kasokoso, a city suburb.
This morning, the committee members questioned the rationale of paying the money to the company and wondered how it acquired freehold land, contrary to the Constitution.
The Committee chairman, Abdu Katuntu says irregularities on both sides are suspicious and should be investigated to eliminate prospects of collusion.
Nathan Nandala Mafabi, the Budadiri East MP, says the committee should also dig further o establish how the lawyers of NHCC and those of Kireka Estates came to agree on the out-of-court settlement.
In response, Henry Magino, the NHCC Company Secretary, explained that the decision was reached, after the lawyers advised that if the case, which was instituted in 2003, was pursued further, NHCC would incur more costs.
Parity Twinomujuni, NHCC Chief Executive Officer, told the committee that the title for the land is yet to be processed, due to delays in finalizing the survey.
The NHCC has for years been entangled in wrangles with squatters, which resulted in violent clashes in past years.