NTUNGAMO, May 11, 2026 – Tension erupted on Thursday morning as members of Katojo Twimukire Growers Co-operative Society Limited [KTGCSL] dismissed their board over allegations of abuse of office and the mismanagement of about Shs 553 million. The decision followed a scathing report by a probe committee and an earlier forensic audit that uncovered systemic fraud within the renowned coffee society in Ntungamo district.
The ousted officials include Laban Twinomujuni [Chairman], Eliab Byaruhanga [Treasurer], and Arinaitwe Tumwesigye [Secretary]. They are accused of influence peddling, failure to account for advanced funds, and conniving with the Secretary Manager, Rebecca Arinaitwe, to authorise questionable expenditures.
The board was voted out during an Annual General Meeting [AGM] held at Katojo Primary School in Ruhama, where members elected Joy Kyomugasho, the former Vice Chairperson, to lead an interim committee.
Charles Twebaze, a former Chairman of the society, noted that the co-operative has failed to pay dividends for the past four years.
He alleged that poor governance resulted in losses of Shs 23mln in 2024 and Shs 53mln in 2023. Twebaze further claimed that the leadership attempted to conceal the losses by falsely recording a Shs 147mln grant from the United States African Development Foundation [USADF] as operational income.
“The society should have been far ahead with government-supported coffee hullers and seedling distributions, but poor governance has left it limping,” Twebaze said.
The forensic audit, conducted by Kumanya Karakuzi & Co. Certified Public Accountants on the orders of the Registrar of Cooperative Societies, revealed widespread fraud that sparked outrage during a special assembly on April 9, 2026.
The audit established that USADF grant revenue had been overstated by Shs 29.86mln, while Shs 60mln in crop finance funds remained unaccounted for. Auditors also found that the first batch of trading had been conducted outside the designated project account, and profits generated from coffee sales were never deposited through the proper channels.
The audit further exposed ghost payroll entries, including Shs 3.15mln paid to a non-existent storekeeper, Turyakira Benard. In addition, questions were raised over the purchase of a plot of land in Rwengoma for Shs 61mln, despite members claiming the land had initially been offered at Shs 30mln.
The transaction was reportedly conducted outside formal banking channels, leaving no verifiable trail. Other irregularities included a Shs 235mln variance in capital reserve accounts and the underpricing of members’ coffee by Shs 26.9mln.
While the board initially dismissed the forensic audit as biased, a subsequent probe committee led by Wellen Ancungwire confirmed the findings and increased the estimated misappropriated funds from Shs 471mln to more than Shs 552.88mln. Ancungwire cited what he described as a deep conspiracy involving Chairman Twinomujuni and Manager Rebecca Arinaitwe.
Under the guidance of Ntungamo District Commercial Officer Ezra Aryanyijuka, an interim board was constituted to serve the remaining eight months of the current term. Joining Joy Kyomugasho are Elly Kanamugira [Treasurer], Arinaitwe Tumwesigye [Secretary], and committee members Annah Tumuhimbise and Eliab Kamezire.
Aryanyijuka urged the new leadership to break what he termed a “tradition of fraud” at Katojo.
“There has never been a board here that walked away successfully. Work for the people and ensure transparency so this society can grow like its peers,” he advised.
Sam Mugabi, Chairman of the Ankole Coffee Producers Cooperative Union [ACPCU], to which Katojo is affiliated, urged members to remain focused on the coffee business despite the leadership crisis.
Meanwhile, the ousted chairman, Laban Twinomujuni, claimed he had been denied a fair hearing and threatened legal action.
“I am going to seek justice because I was not given an opportunity to defend myself,” he said.
Members also questioned why Rebecca Arinaitwe, who was serving as Secretary Manager at the time, resigned prematurely while she was still needed to respond to the audit queries.
“You can see the connivance and conspiracy at the highest level. Why did you allow the manager to resign when she learnt that the forensic audit was coming? Now who did she hand over to in order to answer for all the mismanagement observed?” Owen Mugume asked.
Katojo Twimukire, established in 1953 and registered in 1968, remains a vital institution for its 764 members, with total assets worth Shs 1.26 billion and share capital of Shs 110mln. Despite the current scandal, the society bulked more than 755,000 kilogrammes of coffee last year.
Long-serving members such as Henry Muhangi and Charles Twebaze expressed hope that the suspension of the board would protect the society’s legacy of community development, which has previously supported the construction of local bridges, school staff housing, and scholarships.
https://thecooperator.news/coffee-value-addition-push-gains-momentum-at-ntungamo-facility/
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