25/05/2012 (AllAfrica.com) - President Yoweri Museveni has intervened in a land dispute in Buvuma Islands and halted the pending eviction of about 10,000 bibanja [land] holders who had been asked to leave by June 1 to pave way for the Palm Oil Project.

The President's move followed a demonstration last week where the Buvuma Woman Member of Parliament, NantumeEgunyu led a group of protestors opposing a directive to leave their bibanja without compensation.

Residents onTuesday told officials from State House during a highly attended meeting at Namatooke Trading Center that district leaders had stopped them from planting crops and asked them to prepare to leave by June 1.

The Buvuma Palm Oil project is handled by the Vegetable Oil Development Project (VODP) under the ministry of agriculture, animal industry and fisheries. It is supposed to secure 6,500 hectares of land and lease it to Oil Palm Uganda Limited (Bidco) to start growing palm oil on the Islands.

According to the ministry officials, more 3500 hectares will be needed for the outgrowers scheme out of the 22,000 hectares of land that comprise Buvuma Islands.

It is an extension of the second phase of the $147.23m total palm oil project funded by International Fund for Agricultural Development ($52m) in collaboration with the Government of Uganda ($15m) and contributions from other stakeholders.

At least $93.6m has been earmarked for Buvuma Islands and will be implemented in the three sub-counties of Busamizi, Nayirambi and Bugaya.

Mariam Namayanja, the private secretary to the President and her assistant, Edward Sunday Ochieng told residents that they had been instructed to stop any further plans to evict people until the matter is sorted out.

Amidst cheers, Namayanja instructed the RDC, Apollo Bwebale, the DPC AggreyMugoya and the Chief Administrative Officer, Paul Walakira to ensure the President's directive is adhered to.

She said this was a government project that was not supposed to harass people, and asked everyone to remain calm.

"You now know the President is concerned and is aware of this problem, remain calm and peaceful because no one will chase you until this matter is handled," she said.

The State House officials promised to meet all the affected residents in their respective sub-counties.

Despite requests, Namayanja refused local leaders to address the meeting after it emerged that residents were bitter with the district officials whom they accused of conspiracy in the alleged eviction exercise.

The LC5 chairman, Wasswa Ddungu and his executive had declined to attend the meeting fearing that they would be harassed but were convinced by Namayanja to attend.

Connie Magomu, the VODP project manager later assured a meeting of district leaders that no-one would be evicted before compensation.

She said 59 land owners had been partially paid on condition that they clear their squatters before full payment.

She explained that the project has been delayed because the land boundaries could not be opened because land owners had been threatened by squatters.

"We are stuck, but if the project is not good for Buvuma we can go elsewhere," she said.