Over Shs 9.4bln goes missing at Rwampara Ranching Cooperative
During the 1979 war, most of the cooperative's animals were looted, leaving only 300 cattle, 600 goats, and 200 sheep
MBRARARA CITY, September 16, 2024 – Members of the Rwampara Ranching Cooperative Society Limited in Rwampara district have petitioned the Ministry of Trade, Industry, and Cooperatives [MTIC] to investigate the disappearance of Shs 9.4 billion. This amount was received as compensation for a portion of their ranch that was taken over by the government.
At a recent special general assembly chaired by Bob Barigye, Registrar of Cooperatives, at the Banyankore Kweterana Cooperative Union [BKCU] headquarters in Kakoba, Mbarara City, members accused the cooperative’s board of misappropriating the funds. They claimed that the money was distributed among board members rather than the cooperative’s 390 members.
Robertford Amara, one of the affected ranchers, explained that the missing funds were part of a court-ordered compensation for land taken by the government and distributed to squatters. “We sued the government for taking our four square miles of land, which was given to squatters after the NRA war. We won the case in 2021, and the court ordered government to compensate us with Shs 17 billion,” he said.
The government released Shs 9.4 billion on July 3, 2024. However, according to Amara, the funds were shared among only 140 members of the cooperative, with each receiving Shs 30 million. “We have witnesses who confirm this, but where is the rest of the money?” Amara asked.
Amara also accused the board of selling 300 cattle, land, and two commercial buildings in Mbarara City without the members’ consent. “The board first misappropriated Shs 381mln meant for restructuring our ranch in Nyabushozi after the war. Now, out of the Shs 9.66bln compensation, only Shs 1.8bln remains in the account. The board also sold 300 cattle and made resolutions to sell six more square miles of land and two commercial buildings without consulting us,” he said.
The cooperative members elected an interim leadership to investigate the matter and present a report at a special general meeting scheduled for November 2024. Rev. Asaph Kakombe, elected chairman of the interim committee, expressed concern over why the compensation money was distributed to non-members. “Rwampara Ranchers Cooperative Society enabled us to attain good education and well-being. Seeing it collapse is unfortunate,” he said.
Deogratius Rukuubire, the new secretary, expressed doubt about recovering the missing funds, noting that time has already elapsed. “We need to account for the remaining Shs 1.8 billion and ensure it is distributed fairly to members who did not receive their share. However, recovering the spent money is challenging,” he said.
Duncan Muhumuza, another member, called for fairness and transparency. “I took over from my late father, Gervase Lachi, and I want to ensure the spirit of Rwampara continues. The mobilisation and economic empowerment started by our fathers should not collapse,” he said. Muhumuza added that although he was listed as a beneficiary, he refused to take the money while other members were left out.
Those accused of misappropriating the funds are Bitangaza [Chairman], Joy Ashaba [Treasurer], and Elly Bainomugisha [Secretary]. Bainomugisha defended the board by stating that part of the compensation was used to pay legal fees incurred in the case against the government. “We paid Shs 3 million from our own pockets to lawyers in 2013. They later asked for 25 percent of the compensation, which we paid,” he said.
Ashaba explained that the board removed court charges and transport costs for board members over ten years. According to the breakdown: 25 percent [about Shs 2bln] was paid to the lawyers, 15 percent [about Shs 1.8bln] was taken by the board, 10 percent [Shs 700mln] was distributed to one member, and Shs 4.2bln was shared among 140 members, with each receiving Shs 30mln. Shs 160mln was spent on renting the ranch offices for two months, leaving Shs 1.8bln in the cooperative’s account.
Registrar Barigye expressed shock at discovering that the board continued withdrawing funds despite his directive to block transactions. “They initially misled me about the cooperative’s bank being United Bank of Africa, but I found it was Bank of Africa. I had asked the bank to block further transactions, yet funds were still withdrawn. There seems to be significant connivance and conspiracy that needs further investigation,” he said.
Barigye welcomed the appointment of a new executive committee, noting that the outgoing board had disappointed members through embezzlement. “We will notify the bank about the new signatories and how transactions should be handled,” he said.
Background
Rwampara Ranchers Cooperative Limited was founded in 1963 by a group of 15 herdsmen who pooled Shs 2,250 to graze collectively, aiming to maximise profits and improve their livelihoods. Initially comprising 295 members across Ankole sub-region, the membership later grew to 390. The cooperative expanded to Nyabushozi County (present-day Kiruhura district) and began livestock farming.
During the 1979 war, most of the cooperative’s animals were looted, leaving only 300 cattle, 600 goats, and 200 sheep. After the National Resistance Army/Movement came to power in January 1986, the government allocated 4 out of 10 square miles of the cooperative’s land Nyabushozi Kiruhura district to squatters without compensation.
Currently, the cooperative has no cattle or land and is still demanding Shs 3.34bln from the government as part of the ranch compensation.
https://thecooperator.news/banyankole-kweterana-finally-receives-shs-9bln-for-ranch-compensation/
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