Former manager threatens to sue BKCU over salary arrears
MBARARA – Julius Tugume, the former general manager of Banyankole Kweterana Cooperative [BKCU] Limited has threatened to drag the struggling union to courts of law for allegedly defaulting on his salary worth Shs 31 million.
Tugume who tabled in his official resignation letter on March 14, 2023, said he has not received any response regarding payment of his emoluments for the last five months.
According to Tugume, the board and management of BCKU have declined to even schedule a payment plan since the union cannot pay all his salary arrears at once.
In a letter dated June 30, 2023, BKCU confirmed the receipt of Tugume’s letter of resignation but insists Tugume has a running contract with them until May 31, 2024.
“The union [BKCU] treats your resignation letter as terminating the contract of service which you signed for two years and it is still in force up to 31/05/2024,” part of the letter reads.
BKCU, in the letter, accuses Tugume of failing to officially hand over the office of the accountant which he assumed in June 2014 before he was later appointed as the acting general manager in March 2021.
“The former acting general manager, Mr. Tugume Julius should hand over tools to the new manager with immediate effect,” further reads the letter.
When asked about the allegations, Tugume said he has not received any formal letter from BKCU management. “Formerly I haven’t received the said letter, nobody has told me about it. I just learnt of it from social media,” he said.
Tugume resigned on March 14, 2023, saying that he could not continue working for BKCU without pay.
However, while addressing delegates at the 50th annual general meeting, BKCU chairman Abaasa Ainamaani Rubaromba reported that the union had parted ways with Tugume and the cashier, Monica Tibiwabya, accusing them of corruption.
“We dismissed them because they adopted the old habits of stealing the union funds. They would forge reports and there would be no accountability for the bought coffee. So, Julius and Monica who was the cashier are no longer our workers here at the union,” Rubaromba noted.
The supervisory report also implicated the duo failed to account for Shs 67.5 million and other missing funds totaling Shs 9.2mln in the financial year 2022/23.
“In accounts we found unaccounted funds amounting to 67,057,910 shillings so the concerned officers who took that money should make accountability or else refund that money,” Crescent Rwehururu, chairperson of BKCU supervisory board said.
He added: “Then after paying for all the expenses out of the money withdrawn from the bank, a total of Shs 9,250,000 should have been left as a balance but that money was not there by the close of the financial year hence it needs to be refunded by Mr. Tugume Julius and Ms. Monica Tibiwabya.”
Rwehururu said they would drag Tugume and Tibiwabya to courts of law recover the missing funds. “We have tried to engage them to explain but up to now they have not yet given us a proper explanation. All implicated individuals should refund the money they took or else be sued in courts of law,” Rwehururu said.
Regarding the handover, Tugume replied that he had nothing to handle because while assuming office nobody handed to him anything concerning office work.
“It is only the chairman who gave me the keys that I returned to him by the time I left,” he said, adding that the corruption allegations against him are aimed at tarnishing his image and an excuse not to pay him his arrears.
“I am going to consult my lawyers and they will guide me on this matter,” Tugume noted.
Rubaromba, the BKCU said it has become a norm for the union to be dragged to courts of law by its former staff. Some of the court cases BKCU is battling in include Mujuni Moses Vs BKCU-Ltd, Baingana Lauben Geoffrey Vs BKCU, Mwijuka Dauson, and William Kitandwe, Masaka Cooperative Union Vs BKCU, and Uganda Central Co-operative Finance Services [UCCFS] Vs BKCU Ltd.
BKCU is also indebted with over Shs 3.5 bln and some of the debts include Microfinance Support Centre MSC [Shs 1.4bln], UCCFS [Shs 240mln], Masaka Cooperative Union [Shs 190mln].
Other debts include security guards [Shs 13.4mln], fair trade premium funds [Shs 282mln], staff salaries [Shs 400 mln], UM] Umeme [Shs 5mln], and Internet [Shs 1 mln] among other debts.
https://thecooperator.news/bkcu-boss-resigns-as-salary-arrears-hit-shs-400mln/
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