KAMPALA, September 28, 2023 – The opposition Members of Parliament have castigated the method being used by parliament’s committee investigating cooperatives that received war reparations from the government.
According to the MPs who addressed journalists at Parliament on the matter, their colleagues on the Committee of Tourism, Trade and Industry are transacting business in rather a suspicious way.
Lubaga North legislator, Abubaker Kawalya wondered why members on the Committee have been barred from talking to the media and sharing any information with anyone.
“We hear that our colleagues are involved [in embezzling money for cooperatives], please let us know. Why don’t you allow the media to cover the committee? This is a normal committee. What are we hiding as Parliament?” Kawalya said.
The committee chaired by Mwine Mpaka, the MP representing Mbarara City South has traversed parts of the country visiting cooperatives in Jinja, Mbale, Mityana, Mbarara, and Lira among other areas to establish whether the money government allocated to cooperatives over the years was received and mentioned to the members.
Available reports indicate that several former and current MPs, ministers and high ranking officials in the Ministry of Trade Industry and Cooperatives [MTIC] are allegedly involved in the scandal.
Meanwhile, sources say President Museveni who is also the National Resistance Movement [NRM] party chairman summoned the NRM caucus in parliament this morning to State House Entebbe for a crucial meeting. It is reported that compensation of cooperatives is one of the key issues on the agenda.
There is concern that some of the senior staff at MTIC connived with some of the leaders of cooperatives and law firms to swindle the money meant to compensate cooperatives but also revive their activities.
Days ago, the Internal Security Organisation [ISO] and other security agencies arrested the Registrar of Cooperatives in MTIC Robert Bariyo Barigye for allegedly masterminding the theft. His arrest followed several complaints to President Yoweri Museveni, asking him to act on those who have swindled the money.
Some of he Law firms alleged to be involved in the big scandal include Matovu and Matovu Advocates, Kirya and Co Advocates, Probata Advocates, Makada and Co Advocates, and some managers of the cooperatives that were supposed to receive the compensation money.
For instance, it is alleged that on one occasion where the Ministry of Trade was supposed to compensate Buyaka Growers Cooperative Society based in Bugiri, Shs 5bln was paid contrary to the Accountant Generals report of Shs 6bln. This leaves at least Shs 1bln unaccounted for. This payment was purportedly effected and brokered by Kirya and Co Advocates.
It is further claimed that of the Shs 6.8blnn paid to Buyaka Growers through Probata Advocates and Kirya and Co Advocates, only Shs 490mln was received through their DFCU Bank account while a sum of Shs 6.3bln was allegedly retained by the law firms and the Ministry of Trade officials.
In another instance, a total of Shs 5.3bln also meant for Buyaka Cooperative Society was transferred to Kirya and Co advocates out of which Shs 1.5bln was paid to Probata Advocates. It is suspected that behind this transaction was Leonard Kavundira, the Principal Cooperative Officer at MTIC who allegedly forced Buyaka Cooperative Society to sign a memorandum of understanding entitling the law firm 30 percent of the money. The law firm only remitted Shs 200mln of the total sum.
The source said ISO and other sister agencies launched an investigation into the issue focusing on Busoga Growers Cooperatives Union Ltd, Jinja Multi-Purpose Cooperative Society, and Namisindwa district based Buyaka Growers Cooperative Society.
A Parliamentary Brief on the Cooperative Sector in Uganda submitted by the Uhuru Institute for Social Development [TUI] to parliament in April 2022, urges MPs to take a keen interest in war loss compensation. This call was a result of TUI engaging with cooperators from across the country, and they said claims of cooperatives must be settled transparently, efficiently, and in a timely manner.
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