MPs call for compensation of cooperatives for war loss
Appearing before the Committee on Tourism, Trade and Industry to present the Ministry’s Policy Statement for Financial Year 2025/2025, the Permanent Secretary, of the Ministry of Trade, Lynette Bagonza, disclosed a funding gap of over Shs 137 billion for the activity
KAMPALA, April 8, 2025 –– Members of Parliament [MPs] recently expressed dissatisfaction over the lack of budgetary allocation and delay in compensation of cooperative societies and unions for the losses suffered during political instabilities in the 1970s and 1980s.
Appearing before the Committee on Tourism, Trade and Industry to present the Ministry’s Policy Statement for Financial Year 2025/2025, the Permanent Secretary, of the Ministry of Trade, Lynette Bagonza, disclosed a funding gap of over Shs 137 billion for the activity.
“The verification of cooperatives requiring war claims compensation was carried out but no payments have been effected,” said Bagonza.
Richard Gafabusa, Bwamba County MP alluded to a 2023 report of the committee that raised red flags on the manner in which some cooperatives were paid, noting that payments went over and above the amount appropriated by Parliament.
According to the committee’s report at the time which was adopted by the House, it was reported that over Shs 48 billion was paid in excess compensation between financial years 2019/2020 and 2022/2023, outside the amounts allocated to verified cooperatives in the Ministry’s work plan.
Gafabusa noted that the findings of the report were meant to influence the process positively and rather not put a pause on it.
“We have had running battles with the Ministry over this. Yes, there were issues with the compensation but the committee never recommended that you stop compensations, it only unearthed the rot that was there and recommended how best you should move forward,” said Gafabusa.
“How do we explain this to the other cooperatives that lost property when they saw their colleagues getting money? There must be money provided for this activity,” he added.
Godfrey Odero, Samia Bugwe South legislator challenged the Permanent Secretary while alluding to a report of the Auditor General which indicated that some cooperatives were not verified.
“We need clear answers on this because we want money for our people, the Ministry must look for these resources. We know there was a problem in the previous budget allocation but there are many claimants who are waiting for their opportunity,” Odero said.
Isaiah Isabirye , Jinja North Division MP expressed discontent over the long period of time it has taken for all the claimants to be paid.
“Why has it taken government over 20 years to compensate these people? Their properties were destroyed but unfortunately after all this time, they are still begging government to be paid,” Isabirye said.
Meanwhile, Rita Atukwasa, Mbarara City Woman Representative questioned the impact of Shs 600 million allocated under the Uganda Free Zones and Export Promotion Authority, aimed at linking the Ugandan exporters to foreign markets.
The Minister of State for Trade, Industry and Cooperatives [Cooperatives], Fredrick Ngobi Gume appealed to the Committee to advocate and have the funding gap on compensation filled.
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