Banyankole managers arrested over misuse of union funds
MBARARA – Former Banyankole Kweterana Co-operative Union [BKCU] Chairman, Emmanuel Natukunda and his treasurer Andrew Kaggwa were Friday arrested and dragged to police to record statements over the alleged mismanagement of the union’s funds amounting to over Shs 300 million.
This happened during the 49th Annual General Meeting [AGM] where members became furious after the supervisory and external audit reports implicated the duo for misappropriating Shs 331,540,000.
The angry delegates representing several primary cooperative societies at the AGM could not hold their anger and immediately asked police to arrest the implicated leaders who misappropriated the union funds.
“Let’s arrest these people and be investigated so that the coming board should understand that we are more than serious,” Andrew Besiga,” one of the delegates said of the culprits who had been suspended as reported by theCooperator earlier.
Supporting the delegates, the Minister of State for Cooperatives, Fredrick Gume Ngobi, ordered the police to take charge and arrest the culprits.
“You were involved in eating the union money without accounting for it. If I don’t act, they will say I am involved. Where is the general manager? How can he allow resources to disappear? You must also look for him,” Ngobi ordered the police.
According to the audit reports, as the principal signatory to the union’s account, Natukunda connived with the General Manager [Nelson Nuwahebwa], Operations Manager [Elias Rwobusingye], and treasurer [Andrew Kaggwa] to embezzle some of the union’s One billion shillings paid by the government in 2021 as compensation for losses suffered during the war that led the National Resistance Movement [NRM] into power in 1986.
According to Denis Eidu of Evlo & Co. Certified Public Accounts, cheques indicate that Shs 331, 540,000 was withdrawn by the three union leaders but never presented convincing accountability on how the funds were spent.
“We verified all the cash transactions from 1st April 2021 up to 31st December 2021. Money was withdrawn without the payment voucher and all these funds were not delivered to the accounts department of the union [BKCU],” Eidu said.
The report further shows that Shs 280 mln out of about Shs 331.5mln was paid to Inspired Logistics instead of the contractual sum of Shs 80 mln agreed upon by the two sides to recover the union’s war loss compensation from the central government.
“While reviewing the document we found that they had signed an MOU with Inspired Logistics to pursue the delayed compensation but on the next meeting held on 10th June 2021 the chairman under minute 80 of 2021 informed other board members that the owners …came and took the money contrary to the board resolution of paying 10 percent commission. The 80 mln was taken by a gentleman called Kiwanuka Peter Kawesi on 7th May 2021. They again withdrew and took 200 mln making a total commission of Shs 280 mln,” Eidu explained.
Shockingly, Eidu told delegates that the accused made four transactions in one day right from the time the money was wired to the union’s account in DFCU bank.
“On 14th of May 2021 cheque number 1213 written in the names of Natukunda Emmanuel 200 Mln, cheque number 1214 in the names of Rwobusingye Elias 20 mln, cheque number 1217 in the names of Kagwa Andrew 15 mln and again cheque number 1216 in the names of Kagwa Andrew Shs 15 mln that means a total of Shs250 mln left the account on the same day,” Eidu said.
After two days, another Shs 26 mln was withdrawn in the name of Rwobusingye Elias under cheque number 1221. And the Shs 250 mln did not reach the union because there is no voucher. Apart from the cheques, money did not come here [Union’s office], said Eidu.
Out of Shs 26 mln, the chairman received Shs 12 mln for processing Uganda Revenue Authority [URA] documents. The balance of Shs 14 mln was paid to other board members, each receiving, Shs 2mln for mobilisation of societies.
The beneficiaries include; Gerard Mujungu, Fred Rugumayo, Elisa Maromba, Peruth Nayeta, Nathan Kapere, Betty Musimenta and Patrick Kacwa.
“They received Shs 2 mln on that day but earlier alone they had received Shs 1 mln each, meaning that each board member received Shs 3 mln in total,” Eidu said.
On 14th August, the general manager withdrew Shs 25mln of which only Shs 15.5mln was accounted for and a balance of Shs 9.5 mln is not reflected anywhere, said Eidu.
“On 20th August the treasurer withdrew Shs 9.4mln, chairman Shs 11mln [Shs 11,140,000] on 14th September, general manager Shs 10 mln on 6th October and all this money was not accounted for,” said Eidu.
The external auditor also said a total of over Shs 18 mln was paid to Isaac Kato Isaac, the union’s lawyers.
“Kato took Shs 18.5 mln on 12th of October 2021 and with no attachment on that voucher, he again took Shs 1mln on 26th September and Shs 1.5 mln on 30th September. The person who gave Kato this money should be held accountable.
The auditor added that the three further spent a total of Shs 9,160,000 as administrative fees but is not fully supported with enough accountability.
“Probably they came for meetings but they could not sign and I could not get documentation on how the Shs 9.1 mln was spent,” Eidu said.
https://thecooperator.news/banyankole-kweterana-grappling-with-debts-ahead-of-next-agm/
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