A shocking scandal is beginning to emerge, centering around the Pearl of Africa Hotel, owned by city businessman Muhammed Hami, alias AYA.
The mega scandal follows President Yoweri Museveni’s efforts to save the hotel from foreclosure after the businessman failed to service a loan of Shs 611 billion obtained from South African money lending company Industrial Development Corporation (IDC).
In his letter to the Industrial Development Corporation of South Africa, Museveni explained why he was willing to save the hotel, citing a number of factors including donated land where the hotel sits.
“I have been approached by Mohammed of Aya Investment (U) Ltd Group regarding the imminent sale of his hotel due to his indebtedness to Industrial Development Corporation, South Africa. I have been informed that the sale has been sanctioned by courts having decided several cases in your favor. However, given that the Pearl of Africa Hotel is a strategic investment supported by the government through land allocation and other benefits, the government wishes to intervene so that the debt is paid instead of auctioning the hotel. Therefore, I wish to hold a meeting with you to discuss other ways of recovering your loan instead of selling the hotel,” Museveni wrote.
He further added, “I am, therefore, directing that the auctioneers halt the sale of the hotel pending my meeting this month, and by a copy of this letter, I am directing my Principal Private Secretary to organize the meeting this month,” reads the May 1, 2024, letter.
AYA was given an ultimatum last September to save their 5-star hotel within 30 days.
However, the move to save the hotel has taken an unexpected turn, revealing deep-rooted issues of mismanagement of public resources.
This website has learned that President Museveni dispatched a delegation to South Africa last week to negotiate with the Industrial Development Corporation (IDC) and source a potential investor to partner with the government to revive the hotel.
However, during the crucial talks, a troubling revelation came to light: despite the land on which the hotel stands being originally donated by the Ugandan government, AYA managed to acquire a private land title for the property.
This maneuver, which saw the title transferred from the Ministry of Finance to private ownership through the Ministry of Lands, has since sparked outrage and raised serious questions about corruption.
According to sources privy to the South African meeting, the Ugandan delegation, working with Ambassador Paul Amoru, sourced Legacy Hotels and Resorts as an investor who would work with the Government of Uganda through Uganda Development Corporation (UDC) to redevelop the Pearl of Africa Hotel.
While the three parties (Uganda, IDC, and Legacy) were holed up in a meeting last Friday, it emerged that the Government of Uganda no longer owns the land but rather AYA does.
This caused panic, and Legacy Hotels and Resorts, as an investor, expressed strong reservations about proceeding with any partnership while such legal and ethical uncertainties persist.
The Ugandan delegation and the ambassador questioned how the land title was transferred from the Ministry of Finance to AYA through the Ministry of Lands, and at what cost AYA got the title.
This was revealed by IDC officials who said they have the land title in possession as collateral, which is why they were comfortable lending out such colossal sums of money to AYA.
In the ongoing war against corruption, President Museveni mentioned the Finance Ministry among the top corrupt entities of the government.
This website, however, couldn’t independently verify this claim as no official from the Finance or Land Ministry was willing to comment on the matter.
Similarly, businessman AYA was not available for comment.
The scandal underscores broader concerns about transparency, accountability, and the rule of law in managing national assets.
As the government grapples with these revelations, the public’s trust in its ability to safeguard public resources and uphold the integrity of land ownership processes hangs in the balance.
The transformation of a government land title into personal ownership at the Pearl of Africa Hotel represents a critical test for President Museveni on how he will navigate this crisis.