RWAMPARA, September 15, 2026 — Presidential Advisor for Special Duties Phionah Barungi has warned that individuals implicated in the alleged mismanagement and disappearance of Shs 9.6 billion meant to compensate members of Rwampara Ranching Cooperative Society Limited will be arrested and prosecuted.
Barungi made the remarks days ago during a fact-finding visit where she met aggrieved cooperative members seeking government intervention in the alleged embezzlement of compensation funds and other fraudulent transactions in the cooperative.
“Everyone that was involved in the fraud, in corruption, and all the mess that was done here is going to be brought to book,” Barungi told the disgruntled ranchers at Kinoni, the headquarters of Rwampara District Local Government.
“We cannot stand and have a foundation that is better now than what they had without those people being brought to account. They must tell us why they acted to fail this cooperative.”
Decades of mismanagement
The dispute dates back to the 1990s following the Government’s Ranch Reconstruction Programme, which reduced the cooperative’s original 10-square-mile land holding in traditional Nyabushozi to six square miles without immediate compensation.
Robert Ford Amara, a cooperative member, alleged that Shs 382 million in government rehabilitation grants received in 1993 was misappropriated by former board members of the cooperative.
The dispute escalated after a 2021 High Court decree awarded the cooperative Shs 17 billion in compensation for government’s compulsory acquisition of part of its land. The Ministry of Finance later negotiated the amount down to Shs 13 billion, with government disbursing an initial Shs 9.6 billion tranche in July 2024.
Amara alleged that, through a conspiracy involving external fraudsters and officials, caveats placed on the funds were fraudulently removed, allowing non-members and other individuals to illegally access the money.
Registrar of Cooperatives accused
He specifically accused Registrar of Cooperatives Robert Bariyo Barigye of receiving an Shs 80 million bribe to facilitate an alleged cover-up. He stated he had evidence to support his claims, including recorded conversations.
However, when contacted over phone by this reporter Barigye denied the allegations, saying: “Excuse me; don’t tell me about those things again, you write what you want to write.”
Disputed bank accounts and beneficiaries
Another member of the cooperative, Mugarura Rumanyika, said that although the main Bank of Africa account had been frozen, other accounts, including one at Stanbic Bank, remained operational under individuals whose identities were unclear.
He said this exposed the remaining compensation funds to further misappropriation.
“Many self-seekers and false pretenders have increased, whereby even non-bona fide members are claiming remaining money,” Rumanyika said.
“Some even go ahead to charge members between Shs 300,000 and Shs 500,000 to get registered as bona fide beneficiaries. Most members have been conned in that way.”
Kenneth Nganwa Rubatuhura, a resident of Nyakyera Town Council in Ntungamo district, also accused Barigye of being involved in the alleged embezzlement of cooperative funds.
Rubatuhura said he was among the beneficiaries who received compensation, receiving Shs 30 million.
“We were told it was a total of Shs 9.6 billion received, the lawyers took Shs 2.5 billion and the former committee took 15 per cent of that money. And the remaining balance is over Shs 2 billion at the account,” he said.
He expressed optimism that the dispute would eventually be resolved, although he said he had little hope of reviving the cooperative.
“So far, where we have reached, I see there is a light at the end of the tunnel because with Phionah, she looks to be a straightforward official. And we are hopeful that sooner rather than later, we shall get justice,” he said.
Official report points to governance failures
An official status report compiled by the office of the Rwampara Resident District Commissioner points to what it described as severe administrative failures, arbitrary allocation of funds and exclusion of legitimate members by the former board.
Reading the report, Rwampara Assistant Resident District Commissioner Jackline Arisiima said the former board had failed to account for the cooperative’s livestock, land, buildings, equipment, vehicles and funds received over the years.
“There was abuse of funds by a handful of board members through arbitrary allocation of 15 per cent of funds to themselves, disqualification of genuine members, inclusion of non-members on the executive committee, and unfair distribution of land,” Arisiima said.
Barungi rejects calls for immediate elections
Barungi said previous investigations into the cooperative had repeatedly been disrupted, accusing Rev Asaph Kahinda Kahanguzi, the interim chairperson who initially petitioned her office, of later attempting to halt the process, intimidate officials and disrupt meetings using security personnel.
“Rev Kahanguzi came to my office and told me irrelevant things; he warned and threatened me to get out of the case,” Barungi said.
“He insisted he had brought a letter from the President directing the State House Anti-Corruption Unit to take over and that he was withdrawing the case. But he is just confusing the ranchers and bringing mess into the whole process.”
Barungi urged cooperative members to conduct thorough background checks before electing leaders, warning against choosing individuals who could exploit the society for personal gain.
“I want to show you that you’re the ones who decide to put leaders who can kill your society,” she said.
She rejected calls for the immediate election of a new substantive executive committee, saying fresh leadership could not be established before the underlying governance problems had been investigated.
“You have a faulty foundation, and I will not allow you to constitute a substantive committee when it is built on a faulty foundation,” Barungi said.
“I am going back to engage sister agencies, including the State House Anti-Corruption Unit, to conduct detailed forensic investigations. We must first remove the dead ground so that you can stand on a strong foundation and get final justice.”
Former board member defends compensation distribution
Joy Ashaba, who served as Treasurer on the former committee, defended the board’s handling of the compensation, saying members of the then board had agreed on how the money should be distributed after government paid the compensation funds.
“Even before the money came, there are some people who looked for it, they followed it up, fought for it, and brought it. So when they brought it, the board members who were there by then held meetings and agreed how they should share it with the members,” Ashaba said.
She said the board resolved to distribute the compensation among 155 active members who had bought shares, while 15 per cent was allocated to the committee that had pursued the court case from 2013 to 2024.
Ashaba disputed claims that all people currently demanding compensation were bona fide members.
“Some of those who are making noise today, they are not the rightful bona fide members to share in the compensation money because they had failed to buy shares and most of them had actually quit from the society,” she said.
Ashaba also defended the sale of the cooperative’s property, saying the transactions had been approved by members.
“The select committee got minutes whereby the members would agree to buy and share the property. The members would accept either to sell or not, but it’s not that the board would wake up out of the blue and sell the ranch property,” she said.
Other former board members accused
Among other former board members named in connection with the disputed management of the cooperative are former Chairperson Eliphaz Bitangaza, former Vice-chairperson Wayi Nagabo, and former Secretary Elly Bainomugisha.
Other former committee members named in the financial scandal include Deogratious Rukumire, Edmund Ahimbisibwe, Mwesigwa Nangira, George Kasiba, Boris Mwesime and Suzan Muhindo.
The individuals named have been accused by different stakeholders of various forms of mismanagement and disputed payments. The allegations have not been tested in court.
District official calls for patience
Amon Mutabarura, the Rwampara District Commercial Officer, who represented the Registrar of Cooperatives at the meeting, called for cooperation and patience as the outstanding processes are completed.
He cautioned stakeholders against presenting unverified allegations, disputed payment figures or positions expressed during informal meetings as official findings.
“The meeting provided a useful indication of the depth of disagreement among stakeholders, but it did not resolve the dispute or complete any of the governance steps specified in your instruction to protect members’ rights, restore lawful governance, and minimise further administrative and legal contestation,” Mutabarura said.
He said the Registrar’s Office remains available to support the cooperative members as they hand different matters affecting the organisation that needs revamping.
Background
Rwampara Ranching Cooperative Society Limited was established in 1963 and registered in 1969. It was once a major livestock enterprise operating across nine sub-counties in the Greater Ankole Sub-region.
The cooperative’s long-running dispute centres on the management and disposal of its assets, the compulsory acquisition of part of its land by government, and the subsequent distribution of compensation funds.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
