BKCU demands govt Shs 22.7bln for losses incurred decades ago
Despite the tremendous indicators of growth being witnessed at BKCU, the Union is still grappling with huge debts.
MBARARA, June 24, 2024 – The Banyankole Kweterana Cooperative Union [ BKCU ] Limited is yet to be fully compensated for the losses arising from the liberation wars of 1978–79, and 1980–86, although the Union also wants government to compensate it for its ranch taken over and distributed to the landless peasants.
According to its Chairman Abaasa Ainamani Rubaromba, the once-powerful coffee-bulking cooperative union demands government a total of Shs 22.7 billion which it badly needs to offset some of its debts, and boost its business.
In 1990 the government concerned with squatters’ livelihoods carried out a Ranch Restructuring Scheme. Under the scheme the government curved out land from holders of big tracts of land and divided it amongst the squatters.
Rubaromba said BKCU demands Shs 9bln from government as compensation for the Union’s Ranch No. 29 in Nyabushozi Kiruhura district that was given to squatters while Shs 13.7bln is for the war loss compensation, the cooperative having received Shs 4.3bln as part of the compensation.
Rubaromba was speaking on Friday during the 51st annual general meeting [AGM] held at the cooperative’s headquarters in Kakoba, Mbarara City.
He said BKCU badly needs the money to pay debts, adding that it would also help speed up the processes to restore the lost glory of the cooperative union.
He added: “For the ranch compensation we are in the final stages and we expect the government to pay us about Shs 9bln within this month of June 2024. And for the war loss compensation, we are planning to start verification of all the war losses incurred so that we can get paid like any other cooperative that was affected during the time.”
“We are claiming about Shs 18bln but formally we received over Shs 4.3bln under the directive of President Museveni. We believe that once we receive this money, it is going to boost us in the coffee business,” he said.
In regard to revival of the cooperative union, Rubaromba told delegates that the union’s capital base has grown to Shs 320 million from Shs 21mln, thus calling upon primary societies to remain with their mother cooperative with no worries of collapse again.
“To our members, I am requesting you to come back to the union. We have about 200 societies that are registered with BKCU but have not been active for several years. I am calling upon you to come back and we put Banyankole Kweterana back to its former royal glory,” he said.
On his part, Nicholas Natukunda, an auditor with Obed Associates told delegates at the AGM that Emmanuel Natukunda, the former Chairman BKCU misappropriated Shs 1bln meant for war loss compensation, suggesting that he be taken to Anti-Corruption Court so that the money can be recovered.
Through the Supervisory Committee [SUPCO] Board Chairman, Crescent Rwehururu, delegates anonymously supported the audit report’s recommendation of suing former BKWC leaders who deliberately embezzled union funds in 2020. “Let the leaders who illegally took the union money refund it or face the wrath of the law,” said Rwehururu.
It was further alleged that Shs 300mln compensation was shared among former leaders of the union, Natukunda, General Manager Nelson Niwahebwa, Operations Manager Elias Owobusingye, and the Treasurer Andrew Kagwa who have never refunded or accounted for the missing funds.
A recent parliamentary report indicates that about Shs 164bln meant to compensate cooperatives for the war losses, and others, was abused by cooperative leaders, Members of Parliament, and lawyers among others. So far, some Members of Parliament, are facing the wrath of the law by involving themselves in the abuse of cooperatives’ money.
Meanwhile, the State Minister for Cooperatives, Fredrick Ngobi Gume who was the Chief Guest at the AGM challenged the board and management of the union to avoid loans that would suffocate it in terms of paying high interest rates.
“My last time here, I was being guarded by the Uganda Police and people were fearing that I would be beaten because they were always fighting but when we had a change in management, and even the board ousted, you can now see the union that was making losses has started to make profits. Even some of the stores that were rented to beer breweries, now there is coffee,” Ngobi said.
He also mentioned the revival of the National Cooperative Bank thus challenging BKCU cooperators to welcome it. The first Cooperative Bank was closed on May 19, 1999 by the Bank of Uganda because of poor corporate governance and undercapitalisation.
Ngobi further challenged BKCU to add value to coffee if it is to compete in the export market.
“There is an opportunity for us all to add value to coffee instead of selling green coffee beans because value addition is a very important aspect in production if you are to compete favourably with other dealers in the international market,” he explained.
Ngobi said that the government has decided to surrender all the machinery and stores under Community Agriculture Infrastructure Improvement Programme [CAIIP] to cooperatives and unions thus appealing societies affiliated to BKCU to support the union with coffee to remain strong.
“The Government of Uganda has eventually decided that all the CAIIP projects be it machinery be it storage are going to be handed and manned by the cooperators so this is the time that the cooperatives will be managing the machinery and add value to the agricultural products for export,” said the minister.
He also advised the new BKCU board and management to stick to the cooperative principles and values if they are to govern the union well. “Never make a decision without members’ approval because they are the owners of this business. Whatever decision you take, you must consult the members,” he advised.
Despite the tremendous indicators of the being growth witnessed at BKCU, the Union is still grappling with huge debts from different creditors that went ahead to attach some of its properties including its head office. The creditors are; Microfinance Support Centre [MSC] Shs 1.4bln, shared interest loan of Shs 400mln, Uganda Central Cooperative Financial Services [UCCFS] Shs 243mln among others.
https://thecooperator.news/preparations-in-high-gear-for-banyankole-kweteranas-51st-agm/
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