West Nile Growers Cooperative Union stuck with Shs.6b worth of tobacco

Arua, Uganda: West Nile Growers Cooperative Union in Arua is struggling to sell off over 6,000 metric tons of tobacco harvested this season, thecooperator has established.

The Dilemma follows the Union’s decision to cancel the contract of its longstanding customer Continental Tobacco Uganda Ltd, after the latter failed to pay the union’s 9,000 farmers for tobacco it took last year worth Shs.7.5b.

Speaking to theCooperator on Friday, the Union Manager, Mr. Moses Itukebo said that the last two seasons had been plentiful for the Union, leaving them struggling with finding a market. This year alone, the union has in stock over 6,000 metric tons of tobacco worth Shs.6billion, from 4,500 farmers affiliated to the union. “The challenge we have now is finding an alternative market after parting ways with Continental Tobacco Uganda Ltd,” he said.

He said that the Union had dragged Continental Tobacco Uganda Limited to court over the unpaid dues, and they had agreed to an out of court settlement. “When our lawyers wrote to them threatening to sue, they wrote back and paid an advance of shs500m, leaving them with a balance of shs6.5 billion that they have promised to pay in installments over time,” explained Itukebo.

Other market players in West Nile include Alliance One International (AOI) that took over from British American Tobacco, and Global Leaf Pool (GLP) Ltd that Itukebo says has a small purchasing power.

Last year, Uganda earned over Shs.18 billion from tobacco sales, making it one of the highest agricultural export earners for the country.

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Minister Gume intervenes in Masaba Cooperative Union Woes

State Minister for Cooperatives Frederick Ngobi Gume last week rushed to Bugisu sub-region, to resolve enduring woes among members of the Masaba Cooperative Union(MCU).

Since the beginning of this year, a section of farmers who subscribe to MCU, a coffee farmers’ union based in Bugisu Sub-region have been petitioning the Registrar of cooperatives over what they’ve termed abuse of office, embezzlement of the Union Funds and stripping of its Assets.

Most of the irate members belong to the primary societies of Bichopi, Mafudu, Bunangabo, Lwakhakha, and Makhayi.

They accuse the current board of mismanaging the Union, culminating in the loss of the Union’s assets worth billions of shillings. Some of these assets include; the 1,000 acres of land in Bunambutye – Bulambuli and Lukhonge, Bugema Ginnery, and a prime piece of land on the border town of Lwakhakha.

Also among the accusations is the failure to account for the money received from the government in 2018 as part compensation for the losses suffered by the Union during the NRA bush war, to the tune of Shs.2billion.

Last month, Joseph Wasike, the Union Treasurer, and General Manager Charles Murombo were picked up and taken to Mbale Central Police Station, where they recorded statements. The board chairperson, Eddy Bwayo Wakholowa reportedly remains on the run over the same allegations.

Asked about the progress of the investigations, the Elgon Region police spokesperson John Robert Tukei declined to reveal details but assured theCooperator that the investigation was on course.

He called upon all aggrieved members to come forth with evidence to aid speedy investigations.

Last week, led by a one Moses Wambogo, MCU members told Gume that the Union’s board had failed to perform its oversight function over the Union management, which allowed the Union leadership to abuse members’ affairs unchecked.

“The morale levels of members within the Union are horribly low because we no longer have any sort of trust in the board and its members, individually and collectively. If the ministry does not intervene with specific ultimatums, I am afraid Masaba Cooperative Union will be defunct soon,” Wambogo warned.

The members demanded that the ministry helps organize fresh board elections since the current board had not only failed to deliver but was also nearing its end of the term of office.

Speaking at the meeting held at Makhayi seed secondary school, Gume assured the members that his ministry had constituted a commission of inquiry that would be based on the field for a given period of time, so as to help conduct thorough investigations.

“We strongly believe that the commission will provide us with an informed and comprehensive picture on which to base when making the next decision in regard to Masaba Cooperative Union,” he said.

He promised that his Ministry would ensure that the Union gets a new leadership through an election as soon as the investigation ends.

“My ministry is releasing technical officers to come and conduct elections in those primary societies, after that we are going to have an annual general meeting which will culminate in an election of the top leadership of Masaba Cooperative Union.” He revealed.

Masaba Cooperative Union is one of the three established cooperatives in Mt. Elgon Zone. The others are Bugisu Cooperative Union and Sebei Elgon Cooperative Union. All the three cooperatives majorly deal in Arabica Coffee.

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Court to pass Judgment on Uganda Cooperative Transport Union

Kampala, Uganda: High Court sitting in Kampala on Friday finally set a date for passing verdict over the case between the Uganda Transport Cooperative Union (UTCU) and its thirteen former employees after more than 7 years in court.

On Friday, sitting at TWED Towers along Kafu road, presiding judge Justice Musa Ssekaana received the last presentation of evidence, and set 13th Dec 2019 as the date for delivering judgment.

In 2011, the plaintiffs, through their lawyers Lukwago & Co. Advocates filed civil suit No.139 of 2011 at the High court in Kampala, in which they allege that on 2nd Nov 2009, the defendant (UTCU) terminated their services and issued a general retirement notice to them, but consequently failed to pay them their full terminal benefits.

The thirteen, who had worked as employees of UTCU for more than 20 years between 1987 and March 2010 also fault the Union for failure to provide them with several other employee entitlements including annual leave, salary increment of up to 15%, medical insurance, and failure to remit their contributions to the National Social Security Fund, as prescribed in their employment contracts.

In an interview with theCooperator, Annet Kanyago, the Counsel for the complainants argued that the Union violated the rights of his clients – Byabagambi Deogratiuos, James Peter Etwou, Byamugisha Henry, Nkunge Daudi, Anniset Mpoza Sempa and Ronald Nsubuga. Others are Aggrey Lubwama, Kananura Obah, James Kyamanyi, Blassy Matovu, Jacob Suda, Anthony Mudekete and Gerald Kiiza.

Gerald Kiiza, in particular, avers that he sustained an injury during the course of his employment at UTCU which led to permanent damage to his left eye. He argues that he is now unable to acquire alternative employment and seeks Shs.2.3 million in compensation.

However, in a written defense submitted to court on 21st July 2011 by its lawyers AYIGIHUGU & CO. ADVOCATES, the Union referred to the compensation claim by Gerald Kiiza as “very strange.” “The defendant (UTCU) paid all his medical claims during the course of his employment after clearance with its clinic,” the statement reads in part.

The Union also denies the rest of the charges and insists they met their end of obligations to the complainants. “The defendant denies that the plaintiffs have suffered any inconvenience or been subjected to untold suffering. No notice of intention to sue was served. The defendant prays that the suit be dismissed with costs,” UCTU argued in its final defense statement.

In their concluding statement, the complainants, on the other hand,

asked court to, in addition to the costs of the legal fees “and any other relief that court deems fit and just,” award them special damages and general damages to the tune of Shs.131 million.

When contacted for comment, UCTU’s lawyer Denis Kwizera declined, saying the case is coming to an end and that they would wait for the ruling in December.

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How shear butter agro-processing is changing lives of Pader Women

Pader, Uganda: In 2002, as the LRA insurgency raged on in Northern Uganda, 6 women decided to come together to form a self-help group, as a way of coping with the dire conditions at the time. The women – Abalo Okello Leonora, Florence Komakech, Suzan Anyango Owile, Rose Latoo Lamwaka, Margret Lalam, and Eromina Odong, then involved in shear-nut harvesting, formed among themselves the Shear Butter and Agro-processing Women’s Group, determined to add value to their trade.

Shear butter is rich in vitamin A, E, and F, and can be of medicinal value to people suffering from ulcers. It can also be used as cooking oil and smearing jelly for both children and adults. It is these products that the 6 women hoped to produce, and tap into the local demand for Moya, a delicacy in Acholi.

There was one problem though: They were still enclosed in the Internally Displaced People’s Camps (IDPs), and could not go to the bushes on their own to access shear-nut trees. “We had to rely on the UPDF for security as we went out to access the shear-nut trees,” one of the women told me.

The group survived the LRA insurgency and has now grown to incorporate 1000 women as members. The group chairperson, Ms. Abalo Okello attributes the success of the group to the necessity of its mission. “We formed the group to support each other to be able to provide for our families. And since many women had become breadwinners of their families after the death of their husbands in the war, this group was helping them to cope,” she said.

In 2017, the group was boosted with Shs. 9.7 million under the Uganda Women Entrepreneurship Programme (UWEP) and Abalo says it was a game-changer: “At the time UWEP came in, we were struggling to keep the initiative going but as we talk now, we have been able to have better machines. Although they(machines) are still manual, they’ve given us a big push,’’ she says.

Production Process

The seeds fall by themselves to the ground and are collected in baskets and taken for processing. The Women then use the manual machines to get the oils out of the shear-nuts. On a monthly basis, they make between 10-20 jerry cans of well-processed Shear Oils.

The containers of shear oils are then packed and sold to the local market, especially the smearing oil. The prices range from Shs. 2,000- Shs.15, 000 per container, while a 20 litter jerry can go for Shs.400, 000. In a month, Abalo says, the group can sell between 5-6 jerry cans of the shear oils.

One of the beneficiaries, Ajulian Ayaa, says that a more productive group has led to the stabilization of homes, because women are also able to bring something to the table: “For many women, their lives have changed, and in homes, you find that violence is no more because what a man in the house cannot provide, a woman can have it in place,” she says.

Ayaa says they have now become agents of development in the district, reaching out to other women to embrace government programs aimed at uplifting women financially.

The group has so far been able to pay back Shs.1.7million of their loan, and hope to have completed its full repayment by the end of this year to be able to qualify for another loan.

Now, Abalo says, the group intends to register as a cooperative, to be able to have their products consumed outside Uganda too. In the meantime, they plan to open outlets in each district to expand their market.

Challenges

The Focal Person UWEP Pader District, David Oketch, says that although the women are progressively becoming self-reliant, the group still needs the support in terms of getting better machines to extract oil out of the shear-nuts. “What they have(machines) are manual and as they get older, some member cannot manage to operate them for long,” he said.

He also pointed out the insufficient exposure of the group, arguing that they could learn more from interaction with other business enterprises elsewhere.

The women also have trouble accessing markets. Transporting raw materials to the processing plant and finished products to the market is difficult, especially when they get orders from other parts of the country.

The biggest worry for them though is the challenge of deforestation. As Pader and the neighboring districts’ urban centers expand, the locals are encroaching on existing vegetation, cutting down trees, and the shear-nut trees have been no exception.

In response, Abalo says, the women are coming up with an initiative to protect these trees. “These trees are very important not just for our business, but also for our health. since the products are also medicinal,’’ she added.

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MUASA demands government stick to salary promise, or risk strike

Makerere University academic staff have threatened to lay down their tools ahead of the new semester, in protest of the government’s failure to honor a presidential pledge to increase their salaries.

Speaking to the press on Wednesday last week barely days after the University opened for the new academic year, the acting Chairperson of the Makerere University Academic Staff Association(MUASA) Prof. Edward Nector Mwavu said that his colleagues would stay home until the government addresses their concerns.

The move follows a similar call by the Forum for Academic Staff for Public Universities (FASPU) and the Public Universities Non-Teaching Staff Executive Forum (PUNTSEF). In a joint letter dated August 2nd, the professional associations called upon their members to undertake industrial action. “This is further to reaffirm that you stay at home until our concerns are addressed by government,” the letter reads in part.

The staff accuse the government of reneging on a presidential commitment to progressively increase the salaries of academic staff across all public universities over a 5- year period, the end of which a Professor would earn Shs.15million.

The agreement was reached between President Museveni and the academic staff from all public universities following a similar industrial strike in 2014, before the lecturers agreed to resume teaching.

Now, Mwavu says that the government must rededicate itself towards evaluating the performance of the salary enhancement Scheme. Currently, a non-Science professor earns a gross salary of Shs.8.5 million, Shs.6.5 million shy of the targeted Shs.15million, yet the 5year implementation period of the salary enhancement scheme ended in July this year.

In the just began financial year, the government set aside Shs.15 billion towards salary raise for both teaching and Non-teaching staff in public Universities, but Prof. Mwavu insists that’s “peanuts,” weighed against staff expectations. “Shs.15 billion is a lot of money in figures, but when you try to distribute it across all the Public Universities, it means that a person who was supposed to move from Shs.8.5 million to Shs.15 million might only move to Shs.8.8 million,” he told theCooperator.

He argued that at this rate (Shs.15billion each financial year), it would take the government up to ten years to achieve the commitment made by the president. That, coupled with inflation, and the fact that more hitherto unplanned staff are coming into the payroll means that there is no significant benefit to staff, says Mwavu.

“Last financial year, we received a total of Shs.58 billion for all Public Universities but the staff members who got the highest enhancement received about Shs. 600,000 only. What about Shs.15 billion spread across all public Universities! What will each staff get?” Prof. Mwavu asked.

The Makerere University Vice-Chancellor Prof. Barnabas Nawangwe has however called upon the staff to resume work with the new semester, as negotiations continue with the government. The semester resumed on August 3rd with the reporting of First-year students, while the continuing students report today.

Last semester, the university came to a standstill for nearly a month as lecturers demanded unpaid arrears from the government worth over Shs. 29 billion. Prof. Mwavu called upon the government to avoid the reoccurrence of a similar scenario this time, arguing that they(Staff) had raised the alarm as early as possible to allow the government to consider their plea in time.

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West Nile Teachers Want Govt to Address Pay Irregularities

Arua, Uganda: Teachers in West Nile region have appealed to government to consider paying them according to their grades.

The teachers, from primary and secondary schools, said majority of them have failed to upgrade just because government doesn’t value their academic papers.

“We are urging government to pay us according to our qualifications. As primary teachers, we are earning a salary scale of U7, which is about Shs400,000 flat whether you are a graduate or a fresh Grade III teacher, and this has demoralised many of us from upgrading,” said Dafin Amajuru, from Adjumani district.

Amajuru made the appeal before Gen. Moses Ali, the first deputy prime minister, during the launch of WALIMU savings and credit cooperation organization (SACCO) funds for the teachers of West Nile at Heritage Courts Hotel in Arua town on Tuesday.

The WALIMU SACCOs Union Limited is an umbrella body of all teachers’ SACCOs in Uganda whose principal role is to foster the growth and development of all teachers’ SACCOs in the country.

The Union officials used the opportunity to launch a dummy cheque worth Shs499,850,000 which has already been disbursed to three teachers’ SACCOs of Adjumani, Nebbi/Zombo and West Nile teachers’ SACCO.

The money is part of the Shs17.085 billion received by MALIMU SACCOs Union from the government.

But during the function, Amajuru noted that many teachers are finding it “useless” to spend the little salaries they earn on upgrading, citing lack of value as government does not pay them according to their grades.

This, the teachers say, affects performance in public schools.

Amajuru proposed that government sets aside funds to assist teachers to upgrade like it is the case with other civil servant in the district, saying this would motivate them, thus improving education standards.

Similarly, Marino Tabule, from Maracha, said it was time government started paying teachers salary that are commensurate with their level of education.

“When you complete a diploma, especially for primary school teachers, they say that is an added knowledge and yet you spent a lot on the studies. I think that is totally unfair,” said Tabule.

He said the problem of the uniform salary scale has demoralized many teachers in most government schools, a matter that should be addressed.

Meanwhile, Jamal Magezi, a teacher of Onzivu Primary School in Arua Municipality, said, “The uncertainty in the fluctuating prices in the market is affecting us so much, a reason we opt for quick loans and later run away from classes for fear of being arrested by the lenders,” said Magezi.

“Most micro finance institutions have been giving us loans with high interest rates. You find a teacher borrowing money at an interest rate of 20 to 30 percent per month and yet he has other things to do with the same salary. This has forced most teachers to dodge classes because money lenders are always on their tails,” said Magezi.

Gen. Ali promised to take the teachers’ concern to the relevant authorities. For the meantime, he urged the teachers to make use of the WALIMU SACCO funds to supplement on their salaries.

“Your number is so big as teachers and this has been a big challenge to the government. But as we prepare to address your problems, use this opportunity to supplement on your salaries. I can’t see any reason why you can’t borrow the money government has put in your SACCO to improve on your lives,” Ali said.

According to Stephen Nabende, the national board chairman of WALIMU SACCOs Union, so far 17,000 teachers from 185 SACCOs have benefited from the funds in the whole country.

He encouraged the teachers in West Nile to form more SACCOS in their respective districts so as to benefit from the government funds.

Nabende said WALIMU SACCOs Union advances funds to teachers’ SACCOs at an interest rate of 8 per cent per annum and teachers borrow the money at a rate not exceeding 15 percent per year compared to the loans they pick from other micro finance institutions.

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UWA urges Wildlife-hosting communities to form cooperatives

Kampala, Uganda: Uganda Wild Life Authority(UWA) has urged communities around National Parks to organise themselves under cooperatives, to better benefit from the annual park revenue collections shared with wild-life hosting communities.

Since the enactment of the Wildlife Act Cap 200 of 2000, UWA has been remitting 20% of the annual park gate collection fees to host district local governments, to strengthen cooperation between the Wild Life body and the hosting communities towards sustainable management of wildlife resources.

Over the years, however, there have been persistent complaints about the utilization of remitted funds, with host communities accusing their local government officials of misappropriating the funds to benefit their own interests, yet they(communities) are the ones who pay the price in form of ruined seasons when animals stray into their gardens.

Now, UWA is moving to mobilize and encourage host communities to organize themselves into cooperative groups and societies, to be able to better benefit from the remitted revenue and hold their local governments accountable.

Speaking during this year’s annual Editors Breakfast meeting held at the Imperial Royale Hotel in Kampala on Tuesday, UWA Executive Director Sam Mwandha said: “Once people get organized, it becomes very easy to mobilize and address their problems.”

He said following the formation of SACCOs and Cooperatives by communities residing next to the parks, they are now able to closely monitor how the cash that we give them is utilized.

“Before, it was very hard for us to get them to agree on what development projects they (communities) needed to engage in. sometimes, because of these disagreements, the districts took advantage to utilize the funds remitted,” said Mwandha.

He said UWA had taken it upon itself to train organized groups in projects like beekeeping, and that they are now reaping from the skills gained.

Mwandha said UWA will this year release over Shs.30billion to National Park hosting districts, and would going forward pay keen interest in how the funds are utilized.

He said that a total of Shs.6billion had already been released in May this year, to benefit communities in the districts of Kasese, Mitooma, Ibanda, Kamwenge, Rubirizi, Rukungiri, and Kanungu.

Justus Agaba from the Bwindi Ruhija SACCO around Bwindi National Park applauded the Revenue sharing program, saying that it was having a real-time impact on the lives of his community. “Apart from the construction of schools, health centers, and latrines, we are now getting to benefit as organized SACCO members,” he told theCooperator.

TheCooperator has established that most organized groups around parks are now engaging in Bee Keeping and handcrafts making to supplement their incomes. Local beekeeping around Bwindi Impenetrable Natural Forest, in particular, is dominated by the use of traditional hives, commonly known as basket hives.

Others are moving to take advantage of tourist arrivals in their localities to sell their products. “Through the various trainings that we have got as SACCO members, we are now in a position to appreciate the importance of tourism, especially through the sale of crafts to tourists who come to visit the parks,” said Rosemary Komuntale from the Rubirizi Women’s SACCO.

She said they have been trained and supported under the Bwindi Collection to produce high quality handicrafts that appeal to international tourists.

Handing over a cheque of Shs.4.4billion to the district leaders of Kisoro, Rubanda and Kanungu – all of which surround the Bwindi- Mgahinga Conservation Area, Tourism Minister Ephraim Kamuntu hailed the emerging organization amongst Wild Life hosting communities, noting that it is a win-win for them and the government.

“We (government) do appreciate the contribution of communities neighboring protected areas in the conservation of wildlife in Uganda, and want to see them prosper,” he said.

Mwandha said that part of the money will benefit 24 community projects in Rubanda district, and another 35 projects in Kanungu.

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Electricity shortage crippling Zombo Coffee Cooperative

Over 70 women Cooperators in Zombo District are out of work after their Cooperative’s coffee processing plant ceased operations due to lack of electricity.

The women – members of Okoro Coffee Cooperative, used to work at the cooperative’s coffee processing plant, but have since been laid off after the plant ceased operations in 2006.

Gilbert Wachal, the manager of Okoro Coffee cooperative told the Cooperator that their processing plant used to process 15million kilograms of coffee per season, but was forced to wind down operations due to exorbitant energy costs. “We were depending on a generator, using 600 liters of fuel in 10 to 12 hours. The cost was neither making business sense, nor sustainable, so we had to stop,” he said.

Although the electricity network passes just 100 meters from the cooperative factory, Wachal says that their appeals to the government to be connected have fallen on deaf ears. He said that when they contacted the Rural Electrification Agency (REA), they were told they needed a three-phase transformer to generate sufficient power to serve the factory, which they couldn’t afford.

Attempts to get help from the State Minister of Energy, Simon D’Ujanga who is also the Okoro County MP were not successful either. Instead, D’Ujanga asked the cooperators to be patient, saying that plans are already underway to connect Zombo district to the national grid, after the completion of the Karuma Hydro-power dam.

When contacted, a source from REA who preferred to speak on condition of anonymity because they’re not authorized to speak on behalf of the agency confirmed that the agency has already dispatched teams on the ground in Zombo to begin the work of connecting the district to the national grid.

Zombo district is one of the four districts yet to be connected to the national electricity grid. The others are Kotido, Kaabong and Buvuma Islands.

For now, Okoro Coffee Cooperative continues selling its coffee in raw form, forgoing significant revenue that the cooperative previously generated from selling processed coffee. “We have been deprived of other by-products of coffee like the husks which we would sell as manure to farmers,” says Wachal.

As a result, Wachal says, the cooperative has struggled financially, and today lacks sufficient capital to buy coffee from its member farmers, who have resorted to selling directly to middlemen.

As for the processing factory’s machinery, Wachal says it is intact, even though he fears it could have acquired minor faults due to years of inactivity. “When we eventually get connected to electricity, we will be able to detect if there are any faults or not,” he says.

For now, the Cooperative is being anchored on by We Effect– a global NGO focused on strengthening the capacity of small-holder farmers to form cooperatives through which they can better articulate their interests.

Okoro Coffee Cooperative was established in 1962 and presently boasts of 12,000 members. Among its other properties is a 50 ton-store located 6 kilometers away from Paidha town council, which also remains largely unused due to lack of capital.

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Makindye Boda Boda Cooperative Shakes off Leadership Woes to Uplift Members

Kampala, Uganda: A boda boda (commercial motorcycle) cooperative in Makindye, a city suburb, has shaken itself off leadership woes to put a smile on faces of members.

Members of the Kampala Civil Centre Boda Boda Transporters Cooperative Society (KCCBT) say they faced tremendous challenges and were choked to near giving up when a new opportunity came in the mold of a non-governmental organisation, The Uhuru Institute for Social Development.

“Our cooperative reached a point where it seemed to belong to a few chosen members, privileged to receive services from the cooperative,” William Mubiru, a former board chairperson for the cooperative, said.

He said the cooperative society was marred by acute lack of transparency and accountability, leaving the noble cause they had started to uplift their livelihood suffocating.

As things went from bad to worse, they were hit by internal wrangles as the leaders jostled for any crumb they could lay their hands on while blaming one another for the mess.

Mubiru himself faced the wrath of the wrangles as he was impeached for incompetence in 2016.
When members finally pushed for accountability and the leaders could not account for the savings, the cooperative activities came to a standstill but was saved by the approach of The Uhuru Institute for Social Development whose two-day workshop proved a timely retrospective for the cooperative members to reflect upon their past mistakes.

Amissi Basoga, a pioneer member of the cooperative, said they have grown amid both challenges and success. He reveals that he was able to acquire his own motorcycle after more than 12 years of hiring.

He says this was possible through the Freedom Fund from Uhuru Institute that has enabled KCCBT members acquire more than 50 motorcycles.

To him, what has kept them together as a cooperative is the solidarity and trust among members which has been reinforced through training and emphasis on savings culture.

Leonard Okello, executive director of Uhuru Institute, taught the cooperators on how to carry on their administrative work. He challenged them to learn from their forefathers who succeeded in building large cooperatives under great strain in the 60s and 70s.

Okello said the future of Uganda depends on cooperatives and the strength of each cooperative lies on its membership.

“Cooperatives and their Board of Directors (BOD) look exactly as its members. So if you let the BOD down, even you as members lose out,” Okello said.

Ssekuluma Amiri Ssebowa, the treasurer of KCCBT, admitted that when they started the cooperative society in 2015 with just five motorcycles, they had no idea how to run it. This came with a leadership challenge.

He says by November 2016 – a few months after the Uhuru Institute workshop, they had saved Shs1.8 million, contributions from the 42 members they had at the time.

Today, they are in thousands targeting over Shs18 million by the end of December 2019.

“You can forget the past but you cannot forget what the past taught you,” reflects Mubiru, who recognizes that they have come from far.

He said this teaches the new leadership to be more transparent, accountable and democratic; saying he has faith in the current leadership of Lasto Ssemakula.

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Masaka Elders’ Cooperative on the Brink After Shs170m Goes Missing

Masaka Elders Cooperative Saving and Credit Society has been warned it could wind up if the management and financial woes that has dogged it since 2015 is not resolved.

At stake is members’ savings worth Shs170 million that cannot be accounted for, according to audit reports, leaving a section of members demanding for the heads of the current leadership accused of mismanagement and lack of transparency in running the affairs of the cooperative.

The fight between members of Masaka Elders Cooperative Saving and Credit Society and their leaders climaxed last week with the involvement of police.

A meeting called by angry members to decide the fate of the cooperative leadership was thwarted by Board chair Margret Ntambaazi Nabaggala, who wrote to the registrar of cooperatives to gain a directive for the Masaka District Police Commander to block the meeting.

Trouble for the cooperative begun in 2015 when two separate audits found that the cooperative accounts were being mismanaged and millions of shillings could not be accounted for.

Audits carried out by Masaka District Local Government and Bwanika Certified Accountants found that members’ savings, worth Shs170 million, could not be accounted for.

The then manager, Eric Kizza, was sacked following the audits. He was, however, not prosecuted for the loss of funds.

Andrew Mawanda replaced Kizza but efforts to recover the lost monies remained futile. Mawanda is currently on suspension by the board over allegations of financial mismanagement.

Swaibu Makumbi, a delegate from Masaka Municipality to SACCO’s AGM, said the have failed to recover from the shock and are afraid that their savings could “disappear due to gross financial mismanagement and dishonesty that have been inherent of their managers.”

“The society has for quite some time been trapped in internal misunderstandings and intrigue, to the extent of failing to convene meetings to assess its performance. This has seen leaders spend money without approved budgets,” he said.

According to the delegates interviewed by theCooperator, the SACCO has not had a meeting to discuss and settle the ongoing conflicts by the board members.

Rosemary Nantumbwe, a delegate from Kimaamya Kyabukaza sub county, said the society is facing financial challenges, with members currently struggling to access credit.

She says that as delegates, they are considering disbanding the current board to save the society from collapsing as well as save the little money that could still be available.

Board chairperson Nabaggala admitted she was aware of reports of mismanagement. She, however, added that there is an ongoing audit whose report will guide their next course of action as the Board.

“We will take action on any person held liable of any mistakes, and it was actually those investigations that forced the manager to step aside so as not to jeopardize the inquiry,” she said.

Masaka Elders’ Cooperative Society was established in 2006 to primarily attend to the emerging financial needs of the elderly persons in the eight districts of greater Masaka sub region, but it also later brought on board other people.

Each sub county sends two delegates to form the AGM.

Deo Mulindwa, one of the founders, said their monthly savings ranges between Shs2,000 and Shs5,000, with their shares going for Shs10,000 each.

Records indicate that the cooperative currently has a membership of 3,047 people.

The society has been providing credit to farmers who deal in coffee, piggery and poultry at interest rate of 17 percent. It also offers credit to business community at 20 percent interest rate.

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