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A special committee instituted by the Office of the Inspector General of Government (IGG) has commenced investigations into three real estate companies for breach of construction guidelines for some of the residential apartments skyrocketing in the different city suburbs.
The committee comprises special experts from the office of the IGG, Ministry of Lands and Housing, as well as the National Building Review Board, and will investigate some of the high-rise apartments which do not meet market standards, constructed in areas such as Naalya, Najjeera, Kireka and Kungu suburbs on the outskirts of Kampala City.
The investigation is based on earlier IGG’s inspection findings on condominium properties published on August 22nd, 2024, which pinned Universal Multi-Purpose, Fakhruddin Properties and Comfort Homes Limited as the main companies behind poor quality apartments with shoddy works and persistent standards shortfalls on the market.
Ali Munira, the Spokesperson of the IGG, told CEO Magazine that the conclusion of the investigations will determine the next course of action or any penalties for the real estate companies involved.
The culprits
An independent investigation conducted by CEO Magazine discovered that Fakhruddin Properties was founded in 2003 and identifies itself on its website as a renowned property development, property management, brokerage, and hospitality management organisation that offers end-to-end property solutions.
Its international portfolio of residential and commercial projects cuts across the United Arab Emirates, the United Kingdom, and Uganda.
Mr Yousuf Fakhruddin is the Chief Executive Officer of Fakhruddin Properties and has been at the helm of the organisation, leading it for nearly 2 decades now.
Yousuf has not just managed and represented Fakhruddin Properties as the CEO for 20 long years but has also been a Board member of the company.
A prominent figure representing Fakhruddin Properties in Uganda is Mr Haidry Qusai, positioned as Director of Sales in the company, and is also reported to have held a similar position at Aqeeq Uganda Limited, another company mentioned in the IGG’s finding
Despite the IGG office placing a red flag on some of the properties, the companies continue to maintain and advertise the same properties to prospective clients on the companies’ websites and their social media accounts.
For instance, Fakhruddin Properties has continued to advertise Lotus Vinia, an apartment block located in Najjera, and Hazel apartment blocks in the Naalya suburb.
Universal Multipurpose has also maintained on its website the Swan Residency in Kireka despite the IGG giving a red flag on the project.
The Universal Multipurpose company is run by Mr Zeob Yeolawala, who also identifies as Muffadal Yeolawala on his LinkedIn profile. Mr Yeolawala holds a Bachelor of Commerce, and a Masters in Interior Design, Business Administration and Management from Nath Valley, India.
In this 2021 photo, Mr. Qusai Tambawala, the CEO of Comfort Homes, one of the condemned companies is seen meeting with Mr. Don Wanyama, the Vision Group CEO ahead of the media company’s Homes & Construction Expo.
He also identifies as a director at Aqeeq Uganda Limited, a company that was involved in the purchase of Waves, a five-block apartment based in Kungu, Kira Municipality, and developed by Fahkruddin Properties. Based on the transaction between the two companies and the directors involved, points to the fact that Fakhruddin Properties and Universal Multi-Purpose enjoy a symbiotic relationship in the property business.
The CEO Magazine also discovered that the properties for sale were mainly advertised as artistic impressions with prices ranging from UGX 100 million and UGX 400 million depending on the size of the condominium.
IGG’s investigation
Some of the findings from the IGG’s investigation revealed serious defects on Swan Residency, a two-block apartment located along the Kireka- Namugongo road with 50 units on each block constructed and commissioned by Universal Multi- Purpose.
The home owners at Swan Residency interviewed stated that they entered the apartments in 2022 when they were unfinished and most of them had to re-do the interiors of their apartments.
The apartments also had cracks which were visible on the exterior walls while the exterior finishing and painting was not done.
The apartments have two swimming pools- a small one for children and a medium-sized one for adults- located under the building of one of the blocks, which poses a risk of compromising the integrity of the building.
The columns supporting the building above the swimming pool were also said to have developed cracks. The works on the drainage channels were shoddy and the gate which was installed is faulty and keeps breaking down.
Other serious issues were identified in the plumbing system with constant leakages from the pipes. The pressure of water was also said to be low which affected the residents on upper floors as water did not adequately flow to their houses. Most of the homeowners had to buy and install booster pumps.
The buildings have no provision for a fire escape in the buildings, while waste management remains poor with only one small waste disposal bin provided by Cornerstone Management which is not enough to accommodate the garbage from all the residents.
The IGG also noted that there was no poor security shelter/house for the security personnel with only a metallic fabricated booth for the guards to use.
During the advertisement of the property, there was a store room included but during the time of payment, the homeowners were told to pay an extra Ugx 10 -12 million for it.
The gym is not adequate for all the residents, and most of the equipment is not functional. The washrooms and lights in the gym do not work.
All the residents pay a fee of UGX 110,000 to UGX 130,000 for maintenance (waste disposal, security and cleaning of the compound) of the premises to Cornerstone Management.
The septic tanks are situated in the parking space/lot.
The IGG team also pointed out faults in Leo Zodiac’s two-block apartments located in Najjeera and under Universal Multi-Purpose Enterprises Ltd.
The time of entry into the premises by the homeowners was between 2018 and 2019.
The IGG team, during the inspection of the apartments, identified visible cracks on the exterior wall coupled with poor drainage in the compound in that when there was a heavy downpour, the compound would flood and water entered into the houses on the ground floor.
The septic tank is under the compound area while the wall on the neighbor’s side is on the verge of collapsing (it’s always wet) because of the water retained in the compound after heavy rains.
The roof leaks and the ceiling in one of the blocks is on the verge of collapsing on the houses on the upper floor. Apartment 19 is affected.
The design of the roof is flat which poses a problem of water retention after heavy rains. One of the iron sheets on the rooftop was blown off during a storm.
There is a major issue with the plumbing system of the sewage. Sewage is released into the neighbour’s compound. There are also cracks on the ground floor/foundation which may affect the integrity of the buildings.
One of the homeowners has a crack in the living room.
There is mould/dampness on the walls, floors and windows of the houses/apartments.
Most of the fittings initially installed by the Developer were of poor quality and they had to be replaced by the homeowners.
The door and window fittings were not done properly such that when it rains heavily water enters into the houses through the windows and doors.
There is no area to cater for stormwater. When there is heavy rain, the compound floods which affects the residents on the ground floor. They sometimes have to pass through water to access their houses.
There is leakage of water from the pipes installed in the walls which is causing dampness.
Fakhruddin Properties faulted
The IGG pointed out serious defects in the Lotus Vicini two-block apartments with four units on each block under Fakhruddin properties and located in Najjeera 2, Kira Municipality.
The time of entry into the premises by the homeowners was in March 2022. The findings during the inspection by the IGG team revealed that the wiring of the houses was poorly done with the electric wires not covered properly.
A doorbell was not installed in one of the apartments while the verandah on the balcony was not leveled and is too small. The windows on the balconies do not lock while the walls remain damp both in the interior and exterior.
There were also deep cracks on the walls in one of the apartments but the cracks were rectified by the developer after the board room session held by IGG on 17th October 2023.
However, the IGG noted that there were also deep visible cracks on the exterior walls in the different blocks. The duct point for all the apartments in the blocks was too small.
The material used for the doors was of low quality and most of the home owners had to replace the doors at their own expense.
The door leading to the rooftop in one of the blocks was faulty while the glass windows were all broken and when there was heavy downpour, water would spill onto the staircase.
The design of the staircase railings was not appropriate and posed a risk to the residents, especially children.
Few of the homeowners signed the handover report while some of the homeowners had to fix the damp roofs and walls at their own expense twice. However, there is still leakage of water in the walls.
The developer Fakhruddin, did waterproofing on the rooftops in blocks C, D and F after the board room session with the IGG last year in October.
Some of the other properties with similar challenges include Waves, a five- block apartment developed by Fakhruddin Properties Uganda later sold to Aqeeq Uganda Ltd. The property is located in Kungu, Kira Municipality.
The two-block Hazel Apartments with 32 units in Naalya under Fakhruddin Properties Uganda also suffered major setbacks such poor ventilation, poor wiring and overflow of sewage.
Casa Marcella Apartments in Naalya developed by Comfort Homes Ltd, were found to have dampness in the walls causing the paint to peel off, water leakage from top floors to lower floors causing damage to ceilings, poor ventilation and cracks on walls. Comfort Homes Managing Director is Mr Qusai Tambawala.
The IGG also noted that the two-block Sunrise Apartments with over 88 units located opposite the Children’s Clinic in Naalya, had cracks on the exterior wall, water seeping through tiles.
Company’s response.
Since the IGG’s findings were released, the three companies involved have not released any formal statements on the matter which has left the public guessing.
Mr Mufaddal, the CEO of Universal Multi- Purpose declined to comment on the matter.
However, a one Annette Babigamba who identified as a salesperson for Universal Multi-Purpose acknowledged the several issues identified by the IGG, and referred the CEO Magazine to the company lawyer for further comments. Babigamba is also listed as a director on the company’s website.
Babigamba also noted that Kira Municipality has already produced a report on the matter which has been forwarded to the company’s engineers for further action.
Penalties
Section 41 of the Building Control Act, 2021 requires remedial action on defective buildings.
According to Sub Section (1), A Building Committee may, where a building— is in a state of disrepair; is dilapidated; or is showing signs of disrepair or dilapidation, by notice in writing, order the owner of the building to demolish the building or take remedial action on the building, as the case may be, to a standard determined by the Building Committee.
“A person who fails to comply with a notice issued under subsection (1) or (2) commits an offence and is liable, on conviction, to a fine not exceeding twenty-four currency points or imprisonment not exceeding one year, or both,” the Act reads in part.