Trade ministry official implicated in misappropriation of over Shs 9.6bln for Rwampara cooperative

RWAMPARA, November 5, 2024 – A new investigative report has implicated the Registrar of Cooperatives, Bob Barigye Bariyo, for conspiring with the cooperative’s board members to embezzle over Shs 9.6 billion that the government released to the Rwampara Ranching Cooperative Society Limited in Rwampara district. The funds were intended as compensation for land taken over by government.

The revelation came during a special general meeting [SGM] held at Rwampara district headquarters on Friday. The meeting was convened to discuss a report from an interim committee that had been tasked with investigating the disappearance of most of the money. The investigation was initiated following a recommendation from the cooperative’s members during a meeting held on August 23, 2024.

The minority report, presented by Interim Chairman Rev. Asaph Kahanguzi, criticised certain members of the select committee for allegedly colluding with the suspended board to sabotage the investigation. “Most of the members assigned to the committee have stolen significant sums of money. How can someone like Elly Bainomugisha, the accused former secretary, investigate himself?” Kahanguzi said.

Allegations against key figures

The report alleges that Barigye at first received Shs 82 million and then later got Shs 15mln, while Amon Mutabarura, the Commercial Officer for Rwampara District, received Shs 5mln from the Shs 9.6 billion deposited by government into the cooperative’s account at Bank of Africa on July 2, 2024.

Kahanguzi further claims that Bainomugisha confirmed giving bribes of Shs 82mln and Shs 15mln to Barigye in exchange for retaining his position as secretary within the cooperative society.

During the meeting, Bainomugisha and Joy Ashaba, the cooperative’s accountant/treasurer, allegedly admitted to the misappropriation. “When we held a meeting on October 30, 2024, Bainomugisha and Ashaba confirmed the allegations against Barigye and the Commercial Officer, and they did not deny the charges,” said Kahanguzi.

Mismanagement and fund distribution

The report also accuses the cooperative’s board of distributing half of the compensation money among themselves. According to Kahanguzi, if the stolen funds are returned, each member of the cooperative could receive up to Shs 30mln, with the remainder earmarked for revitalising the struggling cooperative.

Bainomugisha is alleged to have taken over Shs 1.4 billion, while a one Muhindo received Shs 18mln, Eliphaz Bitangaza took Shs 300 million, and Ashaba allegedly pocketed Shs 250 million. Other board members are also said to have benefited from the funds.

Kahanguzi claims that when he confronted Bainomugisha who acknowledged taking the Shs 1.4bln and expressed willingness to repay it. Ashaba reportedly also admitted to receiving Shs 30mln for membership and a further Shs 100mln, although she owes the cooperative  a total of Shs 410mln.

Kahanguzi also revealed that the executive team tasked with distributing the funds to members gave out significantly less than promised. “Members were supposed to receive Shs 30mln each, but many received between Shs 10mln and Shs 20mln, and some even forged documents to become beneficiaries,” he said.

The report further alleges that Bainomugisha ran the cooperative with little oversight, hiring lawyers who determined their own hefty fees, 25 percent of the total compensation, without consulting the cooperative’s members. “How could the lawyers decide on such a large payment without a general meeting?” Kahanguzi questioned.

Additionally, the report claims the board rented office space for Shs 82mln per month, spending nearly Shs 164mln, yet no documentation has been provided to verify the rental expenses.

Role of Bank of Africa

The report also accuses Bank of Africa of failing to comply with the Registrar’s directive to halt further withdrawals from the cooperative’s accounts. Kahanguzi argues that the bank should be held accountable for the missing funds. “The bank ignored instructions from the Registrar and continued processing withdrawals, and they should be held responsible for the missing funds,” he noted.

Call for action

Kahanguzi called for the replacement of Barigye, who he claims has indirectly facilitated the theft by colluding with the cooperative’s executive. “We are recommending that we get another supervisor, as we suspect Barigye is among those who stole our money. We will write to the ministry [Ministry of Trade, Industry, and Cooperatives] to request a new supervisor, and we hope the ministry will respond positively to our concerns,” he said.

This is not the first time Barigye has been implicated in a cooperative money scandal. In 2022, he was mentioned in the 2020/21 supervisory report as a beneficiary of Shs 200mln from the Banyankole Kweterana Cooperative Union’s war compensation.

Kahanguzi also expressed fear for his safety, claiming he had received death threats from individuals who want him to stop the investigation. “I have received threats from unknown individuals because of this case, but I will not back down. I will continue fighting for the recovery of our money,” he said.

Additional findings

In a second report presented by Andrew Mubona Besigye, the Interim Vice Chairperson of the cooperative, it was revealed that Katutsi Ramunu and Company Advocates were paid Shs 2.4bln, representing 25 percent of the compensation amount.

Meanwhile, Bainomugisha and Ashaba transferred a total of Shs 1.8bln from the cooperative’s account to their joint account at Bank of Africa. A total of Shs 4.2bln was paid to cooperative members, leaving Shs 1.8bln unaccounted for as of August 23, 2024.

Besigye recommended that the suspended board be dismissed, as they had no clear plan for the sustainable operation of the cooperative. He also called for the election of a new executive committee and urged government agencies, including the State House Anti-Corruption Unit (SHACU), to investigate the matter thoroughly.

Missing suspects

Surprisingly, neither the accused former board members nor the Rwampara District Commercial Officer, Mutabarura, attended the special general meeting.

Members’ reactions

Several cooperative members expressed their outrage at the mismanagement. Asenansio Ainomugisha condemned Registrat Barigye for his failure to intervene and stop the board’s financial misconduct. “Why did you allow Bainomugisha to act as an individual and withdraw money without the full executive? This shows the level of conspiracy and connivance you were involved in,” he said.

Frank Mwebaze Mature urged authorities to arrest Barigye to answer for the missing funds, while Betty Namanya called for the remaining Shs 1.8bln to be distributed to the members who have not yet received their compensation.

Election halted

The elections for a new executive committee were postponed by the Mbarara Resident City Commissioner , Catherine Kamwine, who advised members to wait for the completion of investigations before proceeding with any elections. “You should not rush to elect a new executive before the investigation reports are concluded and the truth is established,” Kamwine said. “After that, you can elect a new executive to continue the work.”

Barigye has announced that an elective special general meeting would be held on November 30, 2024.

Background

Rwampara Ranching Cooperative Society Limited was established on January 20, 1969, covering nine sub-counties in Greater Ankole, including Ntungamo, Ndeija, Ruhama, Itojo, Rwikiniro, Rukoni, Rugando, Bugamba, and Nyakayojo.

In 1993, the government took 4 square miles of the cooperative’s land without compensation. After a legal battle, the cooperative won a case against the government, which ordered compensation of over Shs 9.6bln in 2024. However, allegations of mismanagement of the funds by the board, lawyers, and other officials have emerged, with three individuals, including Elly Bainomugisha [secretary], Joy Ashaba [treasurer], and Emmanuel Ahimbisibwe [member], arrested and released on police bond as investigations continue.

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