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Coops’ war loss compensation: MPs Mawanda and Mudimi summoned by CID over corruption

More current and former MPs who connived with the lawyers to embezzle war loss compensation money for cooperatives will face the wrath of the law.

KAMPALA, June 18, 2024 – The Member of Parliament for Igara East Constituency, Michael Mawanda Maranga has been summoned by the Criminal Intelligence Directorate [CID] of the Police over his alleged involvement in the misappropriation of the money released by government to compensate Buyaka Growers Cooperative Society Limited for the losses suffered during the liberation wars of 1978-79 and 1980-86.

This follows a report of Members of Parliament on the Sectoral Committee on Tourism, Trade, and Industry on the Inquiry into the Governance of; and Value for Money Budgetary Appropriations to Cooperatives which pins current and former legislators of conniving with lawyers to embezzle the money meant for compensation of cooperatives in Uganda.

Mawanda was summoned over his alleged involvement in theft, corruption, and intentions to defraud Buyaka Growers Cooperative Society. This website understands Mawanda was summoned together with Ignatius Wamakuyi Mudimi, the MP for Elgon Constituency in Bulambuli district.  The two legislators are expected to appear at CID on Wednesday, June, 19.

During the investigations, the MPs were shocked to learn that Buyaka Growers Cooperative Society was lured into contracts with two law firms that eventually cheated them, taking up a bigger percentage of the money paid to it by government through the Ministry of Trade, Industry and Cooperatives [MTIC].

Fred Masaba, Chairperson Buyaka Gowers Cooperative, narrated their ordeal dealing with law firms which he said were recommended to them by Leonard Kavundura, a top official in MTIC.

For example, out of the Shs 5,366,412, 800 verified for payment to the cooperative, Shs 3.5 billion was paid in the financial year 2021/2022 while Shs 1,868,714,611 was released in the financial year 2022/2023 amounting to Shs 5, 368,714, 611, which was remitted to Kirya and Company Advocates instead of being disbursed directly to the cooperative’s bank accounts.

According to the report, Kirya Co. & Advocates paid Shs 1, 550, 000,000 to MP Mawanda, while Shs 200,000 was paid to MP Paul Akamba who had lent the same amount of money to MP Mudimi while Mudimi himself received Shs 1,050,000,000 purportedly for land bought by the cooperative from his WIMU Investments. The land is said to be situated in Soi County, Kapchorwa district.

According to the report released by the MPs, Buyaka Growers Cooperative Society received only Shs 490 million in its bank account, Shs 290 million from Kirya & Co Advocates, and Shs 200 million from Probata Advocates, which received Shs 1,500,000,000 on behalf of the cooperative.

According to the report, Kirya and Co Advocates were introduced to the cooperative by MP Mudimi in his office at Parliament in a meeting attended by the cooperative’s Chairperson Masaba and Treasurer David Watuwa, and MP Mawanda.

In the report released in October 2023, Kirya and Co Advocates state that they received instructions from MP Mudimi on how the money for the cooperative would be expended; as shown above.

MP Mudimi (Internet photo).

In the report, among other recommendations, the Committee recommended that CID conducts investigations into the circumstances under which MPs Mudimi, Mawanda got involved in war loss compensation payments for Buyaka Growers Cooperative Society Limited.

This website understands that more current and former MPs who connived with the lawyers to embezzle war loss compensation money for cooperatives will face the wrath of the law. The compensation made by government to cooperatives in Uganda totals Shs 147.22 billion, although it was misappropriated.

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