MBARARA CITY, May 14, 2025 – The State Minister for Cooperatives, Frederick Ngobi Gume, recently cancelled a Special General Meeting [SGM] of the Rwampara Ranching Cooperative Society Limited, saying he had received credible intelligence that some members intended to cause disruption at the venue.
The meeting, initially scheduled for May 9, 2025 at the premises of the Banyankole Kweterana Cooperative Union in Kakoba, Mbarara City, was cancelled following the minister’s directive delivered through the Resident City Commissioner for Mbarara.
According to Jackie Kankunda, Deputy Resident City Commissioner [DRCC] for Mbarara City North, Minister Gume in a letter received by her office, halted the meeting because an investigation report into the disappearance of Shs 9 billion in compensation funds is yet to be released. The funds had been disbursed by the Ministry of Finance to the cooperative as compensation for land acquired by the government.
“Today, 9th May, we were invited to attend the Rwampara Ranching Cooperative Society Ltd meeting. However, on 8th May, we received communication from the State Minister for Cooperatives and the Office of the President to suspend the meeting until the investigations are concluded,” Kankunda told delegates who had gathered for the meeting.
She further stated that the minister had ordered a freeze on all transactions involving the cooperative society’s bank account pending the outcome of the investigations.
“He directed that no individual should operate the cooperative’s account until members are reconvened to determine who was responsible for the missing funds,” she added.
Kankunda also stressed the need to identify bonafide and non-bonafide members of the cooperative to facilitate the election of new leadership.
However, she criticised officials from the Office of the Registrar of Cooperatives, particularly Joseph Lutalo, Assistant Registrar, for insisting the meeting proceed despite the ongoing issues facing the cooperative society whose members are mainly livestock farmers.
She further clarified that the cancellation of the special general meeting was made purely on security grounds. “This was a security precaution. Together with the RDC of Rwampara, Harriet Nakamya, we took the decision to halt the meeting to prevent any potential violence and protect the minister from public unrest.”
Kankunda said President Yoweri Museveni had also expressed interest in understanding how the compensation funds went missing and why the intended beneficiaries had not received them.
Acknowledging the frustrations of cooperative members, Kankunda urged patience until the special investigation report is published. “Most members want closure. They’re tired of endless meetings without resolution. Some are elderly. It is painful, but due to corruption within the cooperative, we had to act to ensure justice is served.”
Charles Twebaze, a member from Ruhama Sub-county in Ntungamo district, condemned Trade Ministry officials for failing to foster cooperation between the ministry and the cooperative’s members.
“The lack of harmony between ministry officials and members is a key reason such meetings aren’t happening. Today, we came expecting to elect new leadership and address pressing concerns, yet those who called the meeting are the same ones who cancelled it,” he said.
Twebaze accused members of the interim board of having vested interests and called on them to step aside to allow progress.
Elvida Kobusingye, another member, appealed to President Museveni to intervene and ensure members recover their funds and property. “My humble plea is for the President to support us in recovering our money and assets,” she said, noting that her late husband, Benon Mutagonya, died without receiving his compensation.
The Annual General Meeting [AGM] of the cooperative has now been postponed three times. Initially scheduled for 30 November 2024, it was first moved to 24 January 2025, then to 31 January, and later to 9 May 2025 – which also did not take place.
Background
Rwampara Ranching Cooperative Society Limited was established on 20 January 1969 and serves nine sub-counties in the Greater Ankole region, including Ntungamo, Ndeija, Ruhama, Itojo, Rwikiniro, Rukoni, Rugando, Bugamba, and Nyakayojo.
In 1993, the government seized four square miles of the cooperative’s land without compensation. Following a protracted legal battle, the cooperative won its case, leading to a Shs 9.6 billion compensation payout in 2024. However, the funds disappeared under suspicious circumstances.
Three individuals – Elly Beinomugisha [Secretary], Joy Ashaba [Treasurer], and Emmanuel Ahimbisibwe [Member] – were arrested and later released on police bond after repaying a portion of the missing money. Investigations are ongoing.
https://thecooperator.news/over-shs-9-4bln-goes-missing-at-rwampara-ranching-cooperative/
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