Go big on Coffee, Bushenyi Farmers Told

BUSHENYI – Large-scale coffee farming could be the surest way to draw into the district a steady stream of investors from across the country and guarantee big pay-days for Bushenyi farmers in future, Asaph Bainomugisha, treasurer Nyeibingo Co-operative society, has said.

“I appeal to all Bushenyi farmers to plant more coffee because it is our main economic cash crop. This will also attract investors to open more coffee factories in the district,” Bainomugisha said recently at the opening of a coffee facility at Nyeibingo Co-op Society Coffee.

The facility was constructed under the Agriculture Cluster Development Project (ACDP). The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) has rolled out the project in more than 50 districts in Uganda.

Bainomugisha said he has never regretted going into coffee farming.

“Personally, I have four children studying in good schools and I clear all their school dues in time just because of coffee. I have also taken on many other projects like banana, dairy farming and tree planting all on the back of coffee farming,” he said.

According to Chris Gumisiriza, the project grants manager at MAAIF, the 57-district Agriculture Cluster Development Project (ACDP) is funded by the World Bank’s International Development Association (IDA) to the tune of Shs 532 billion.

He said the project began in 2018/19 in five pilot clusters covering 25 districts and later spread into another seven clusters in 2019/2020 and will end in March 2022.

Gumisiriza said the project was first piloted in the six districts of Amuru, Isingiro, Kalungu, Iganga, Ntungamo, Nebbi and later moved into 19 more districts in 2019 to raise on-farm production, productivity, and marketable volumes of beans, cassava, coffee, maize and rice in farmer organizations in specific geographical clusters of the country.

https://thecooperator.news/bwijanga-coffee-cooperative-targets-coffee-processing-machine/

“From project inception to-date, the ministry has signed grant agreements with 192 Farmer Organizations from 25 pilot districts worth Shs 62.8 billion, in which the Government of Uganda (67%) will contribute Shs 42.1 billion while farmers will contribute Shs 20.7 billion (33%),” Gumisiriza explained.

The Ntungamo Cluster, which hosts the six districts of Bushenyi, Ntungamo, Rubanda, Rukiga, Kabale and Isingiro received 38 grant awards worth Shs 11.9 billion.

According to Bainomugisha, Nyeibingo Cooperative Society Ltd. in Nyeibingo Parish, Ruhumuro Sub-county, Bushenyi District, received a grant of Shs 278m in December 2020 to construct a 60 metric tonne coffee storage facility and install a coffee huller supplied by China Huangpai Food Machines Ltd.

He said however, that funds were not enough and members sacrificed their premium pay to finish construction, which started in April 2020.

Nyeibingo Co-operative Society Ltd was formed on July 22, 1993 and currently has a total of 632 members.

Bainomugisha said the newly completed modern coffee facility will boost their bulk production.

“Last year we sold 220,000 kilograms of coffee but with this new coffee warehouse and with every household planting an acre of coffee, our coffee production projection is around 400,000 kilograms and our membership will increase from 632 up to 10,000,” Bainomugisha emphasized

According to a report from the Uganda Coffee Development Authority (UCDA), Uganda’s coffee exports soared in March 2020, despite an overall contraction in international trade as a result of the COVID-19 pandemic. Uganda’s major export destinations include; Italy, Sudan, Germany and Spain.

A total of 477,56160-kilogram bags worth about US$ 45.87 million (Shs171bn) were exported with an increase of 38.39% and 35.72% in quantity and value respectively, compared to March 2019.

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Go big on Coffee, Bushenyi Farmers Told

BUSHENYI – Large-scale coffee farming could be the surest way to draw into the district a steady stream of investors from across the country and guarantee big pay-days for Bushenyi farmers in future, Asaph Bainomugisha, treasurer Nyeibingo Co-operative society, has said.

“I appeal to all Bushenyi farmers to plant more coffee because it is our main economic cash crop. This will also attract investors to open more coffee factories in the district,” Bainomugisha said recently at the opening of a coffee facility at Nyeibingo Co-op Society Coffee.

The facility was constructed under the Agriculture Cluster Development Project (ACDP). The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) has rolled out the project in more than 50 districts in Uganda.

Bainomugisha said he has never regretted going into coffee farming.

“Personally, I have four children studying in good schools and I clear all their school dues in time just because of coffee. I have also taken on many other projects like banana, dairy farming and tree planting all on the back of coffee farming,” he said.

According to Chris Gumisiriza, the project grants manager at MAAIF, the 57-district Agriculture Cluster Development Project (ACDP) is funded by the World Bank’s International Development Association (IDA) to the tune of Shs 532 billion.

He said the project began in 2018/19 in five pilot clusters covering 25 districts and later spread into another seven clusters in 2019/2020 and will end in March 2022.

Gumisiriza said the project was first piloted in the six districts of Amuru, Isingiro, Kalungu, Iganga, Ntungamo, Nebbi and later moved into 19 more districts in 2019 to raise on-farm production, productivity, and marketable volumes of beans, cassava, coffee, maize and rice in farmer organizations in specific geographical clusters of the country.

https://thecooperator.news/bwijanga-coffee-cooperative-targets-coffee-processing-machine/

“From project inception to-date, the ministry has signed grant agreements with 192 Farmer Organizations from 25 pilot districts worth Shs 62.8 billion, in which the Government of Uganda (67%) will contribute Shs 42.1 billion while farmers will contribute Shs 20.7 billion (33%),” Gumisiriza explained.

The Ntungamo Cluster, which hosts the six districts of Bushenyi, Ntungamo, Rubanda, Rukiga, Kabale and Isingiro received 38 grant awards worth Shs 11.9 billion.

According to Bainomugisha, Nyeibingo Cooperative Society Ltd. in Nyeibingo Parish, Ruhumuro Sub-county, Bushenyi District, received a grant of Shs 278m in December 2020 to construct a 60 metric tonne coffee storage facility and install a coffee huller supplied by China Huangpai Food Machines Ltd.

He said however, that funds were not enough and members sacrificed their premium pay to finish construction, which started in April 2020.

Nyeibingo Co-operative Society Ltd was formed on July 22, 1993 and currently has a total of 632 members.

Bainomugisha said the newly completed modern coffee facility will boost their bulk production.

“Last year we sold 220,000 kilograms of coffee but with this new coffee warehouse and with every household planting an acre of coffee, our coffee production projection is around 400,000 kilograms and our membership will increase from 632 up to 10,000,” Bainomugisha emphasized

According to a report from the Uganda Coffee Development Authority (UCDA), Uganda’s coffee exports soared in March 2020, despite an overall contraction in international trade as a result of the COVID-19 pandemic. Uganda’s major export destinations include; Italy, Sudan, Germany and Spain.

A total of 477,56160-kilogram bags worth about US$ 45.87 million (Shs171bn) were exported with an increase of 38.39% and 35.72% in quantity and value respectively, compared to March 2019.

Buy your copy of thecooperator magazine from one of our country- wide vending points or an e-copy on emag.thecooperator.news

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Nwoya Rice Farmers Hit By Falling Prices

NWOYA – A bumper harvest should be a gift to farmers hoping to profit off the huge sales but the plummeting retail prices in the last two seasons have drowned out the good news for Nwoya rice farmers.

There are at least 38 big rice farms in Nwoya District sitting on about 8,000 acres.

The big farms include; FOL Farm, which sits on 3,000 acres in Lamoki Village, Anaka Sub County. The farm is owned by a group of investors from Dubai, growing Nerica-4 rice for export.

While commissioning FOL Farm in 2017, President Yoweri Museveni urged Nwoya rice farmers to grow rice on a commercial scale to shrink the rice deficit of 200,000 tons in the country.

But the falling prices of rice are forcing a rethink among many farmers; they are bowing out of the business.

The most affected farmers include the 92 members of Nwoya Cassava and Rice Growers’ Cooperative Society Limited, located in Bwobonam parish in Alero Sub County, Nwoya District.

Michael Odong, the vice-chairperson of the cooperative, said they sold 10 tons of last season’s rice in May. He said they hang on to their rice for months hoping the price would rise but were disappointed.

Last year they sold unhulled rice at Shs 1,500, which has dropped to Shs 1,100 per kilogram this year. And hulled rice, which sold at Shs 3,200 last season, is now selling at Shs 2,000 per kilogram.

“This is when the rice is of high quality. If it is broken (into pieces), it is sold at Shs 1,800,” Odong said, adding that; “our bulk buyers used to come from central Uganda, but now when we call them to buy our rice, they say they have nowhere to sell the rice profitably because rice is all over the market. Our buyers are now the few in the sub region,” he said.

In all markets and rice hullers, super rice, which sold between Shs 3,500 to Shs 4,000, is now bought at Shs 3,000 only, while upland rice locally referred to as Sindani is bought at Shs 2,200 down from Shs 3,000 a kilogram.

The former LC-V Chairman of Nwoya district, Patrick Okello Oryema, said people who invested in growing rice are not doing well.

Oryema told theCooperator that some farmers with huge farms have abandoned rice growing frustrated by competition from rice producers in countries such as Tanzania.

Oryema himself still has more than 10 bags of rice in his store.

“The government of Uganda is encouraging rice production on a large scale, and it is the same government that is allowing rice from other countries to flood Ugandan markets,” Oryema said.

He said if the uncontrolled import of rice is not checked, many rice farmers will close shop.

https://thecooperator.news/nwoya-farmers-struggle-with-cassava-growing/

“Almost all these 38 commercial farmers are involved in rice production and we fear most of these farmers will close, because it makes no sense to invest in a project that does not give you good returns,” he said.

Alfred Ocen, the Gulu District Commercial Officer, said the gradual decline in the price of rice is not only attributed to rice imports.

“I don’t think the issue is only on rice coming from other countries. We already have a problem, because the production has gone up in many districts in the Acholi sub region,” Ocen said.

“Remember during the first lockdown, the only activity that was left for many who lost their jobs was farming, that is why up to now, we still have a lot of rice in the sub region,” Ocen said.

According to a report by Uganda Revenue Authority, for the period ended April 2021, rice was the second most smuggled commodity into the country.

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Goat Plague Wipes Out 700 Animals

HOIMA – A frail district veterinary system is struggling to scale back what seems to be the worst Goat Plague in the western district of Hoima.

So far, it has killed more than 700 goats in three weeks in the oil rich Buseruka Sub County.

Goat Plague, also known as Peste des Petits Ruminants (PPR) or sheep/ goat plague, is a highly contagious animal disease, which afflicts small ruminants.

The disease is wiping out goat herds in the villages of Mbegu, Kabanda, Rwetntale and Kijangi on the shores of Lake Albert.

The disease presents with a sudden onset of depression in animals, fever, discharge from the eyes and nose, sores in the mouth, breathing difficulties and cough, foul-smelling diarrhea and death.

Goats started dying three weeks ago. Farmers simply buried the dead animals because they feared to eat the meat.

According to the Abstained Center for Disease Control and Prevention website, a plague is a disease that affects humans and mammals. It is caused by a bacterium, Yersinia pestis. Humans usually catch the disease after being bitten by a rodent flea carrying the plague bacterium or by handling an animal infected.

https://thecooperator.news/black-quarter-disease-kills-cattle-within-48-hours-in-gulu/

Suleiman Waaku, the Mbegu Landing site LC-I chairperson, who lost over 40 goats to the disease, said residents are too scared and saddened by the many deaths of goats. He said the disease outbreak has economically affected farmers since most of them are heavily invested in goat rearing.

Foste Ageya, a resident of Kijanji, who lost 200 goats in three weeks urged the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) to intervene and save their animals.

“The dead 200 goats are worth over Shs 20 million so this is a big loss, which is going to affect us financially because most of us had invested heavily in goat rearing,” he said

Leonard Onzero has lost 180 goats.

“I suspect the cause of the disease to be the intense sunshine, which led to the loss of quality pasture and forced goats to feed on anything,” a confused Onzero said.

Clever Oringi, who has lost over 50 goats to the disease, said most farmers in the area have lost hope in rearing goats. He asked the government to intervene and have the situation controlled immediately.

Dr Patrick Ndorwa, the Hoima District Veterinary officer, said when they got complaints from farmers, they rushed to the ground and picked blood samples from some of the sick animals and took them to the National Animal Disease Diagnosis and Epidemiology Center-NADDEC. He said the samples turned positive for the plague.

He said the district has secured 3,000 doses to vaccinate the goats.

Ndorwa said currently over 1,000 goats have been vaccinated at Mbegu landing site to help fight the outbreak.

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Bugamba People’s SACCO Gets New Leaders

RWAMPARA – After a few stumbles, the long-shelved election of leaders of Bugamba People’s Savings and Credit Cooperative (SACCO) was held on May 20 in Rweibogo village, Bugamba Sub County in Rwampara district.

The tense election was conducted under the watchful eye of security officers camped at the venue of the special general meeting after two previous Annual General Meetings (AGM) were aborted.

Out of 1,744 members, about 600 turned up to elect new committee members whose term of office expired in 2019.

https://thecooperator.news/rwampara-saccos-get-nod-to-borrow-emyooga-funds/

The special general meeting was presided over by Moses Magumba, a senior officer at the Ministry of Trade, Industry and Cooperatives.

“Some of your members petitioned our office that the previous two AGMs were held but elections were not conducted. Since the term of office had expired and we never wanted a leadership vacuum, we came to conduct a special general meeting today, May 20,” Magumba said.

According to Christopher Ahimbisibwe, the General Manager of Bugamba People’s SACCO, the latest standoff has its roots in an April 2021 petition lodged by SACCO members with the Office of the Registrar of Cooperatives seeking clarity on who should take up leadership positions after the first and second AGMs conducted ended prematurely.

“At the close of the year 2020, members were to elect a new board but to their shock, the chairperson of the vetting committee had elected the full board committee without their approval. Members then wrote a petition in April 2021 to the Registrar of Cooperatives about the failure to elect new statutory committees. The request was honored by the Ministry of Trade who instructed that a special general meeting be held on 20th May 2021, which is today,” Ahimbisibwe said.

However, the anticipated tumultuous special general meeting on May 20, ended peacefully.

Members re-elected Alfred Ainembabazi as the new chairperson of the board committee deputized by Joselyne Nantale.

“On the position of the chairperson, we’ve not gotten any other member competing therefore I declare Mr. Alfred Ainembabazi Bazira as the dully elected chairperson of Bugamba People’s SACCO,” Magumba announced.

Members also elected the new supervisory and vetting committees.

After elections, Alfred Ainembabazi, the new board chairperson accused Amon Mutabarura, the Rwampara District Commercial Officer of causing financial loss to Bugamba People’s SACCO.

Herbert Ndibarema, another elected member, asked the registrar’s office to punish Mutabarura.

“If it’s possible you should either first discipline this district commercial officer or change him from Rwampara because he was behind everything that happened,” Ndibarema.

The new chairman promised to open a new chapter.

“We shall always tell the truth, I promise to unite you all and do whatever you want. I request you to always ask us and get to know what you don’t understand instead of listening to rumors,” Ainembabazi said.

Christopher Ahimbisibwe, the SACCO General Manager, said, “It is now a new beginning and the fact that I have an operating board we are going to cooperate and make sure that the SACCO stabilizes.”

“Our hope is that by the end of this year, our Bugamba People’s SACCO will have reclaimed all its lost glory,” he said.

Magumba said the errant District Commercial Officer will be summoned for disciplinary action.

Interviewed for comment, Amon Mutabarura blamed his troubles on the political mafias in Rwampara that were protecting the former chairman.

“This SACCO was earlier hijacked by the mafias who were at the apex of loan defaulters. As a commercial officer I cannot support something, which is wrong and the moment you support what is right then culprits will find all the means to fail you,” Mutabarura said.

Asked why he suspended the former chairperson, Mutabarura said he was conniving with management to swindle members’ savings.

“Alfred and Centenary were both political agents and due to the fact that politics was still active and fresh in the minds of members, we wanted to change the whole leadership so that they can get someone who is neutral and able to bring the two sides on board but the old board couldn’t concur with me. And then allegations that I was sidelining with some of the aspirants had to arise,” Mutabarura said.

Mutabarura said he is not worried about being punished by the registrar of cooperatives.

“Cooperatives are usually private sector developments unless I did something irregular like causing financial loss or taking a bribe but with an advisory service people may talk irresponsibly. Bugamba People’s SACCO is one of many cooperatives so I am still a custodian in the district,” he said.

Vicent Nuwagira, the deputy Chief Administrative Officer (CAO) of Rwampara adds that the politics involved within the SACCO could not cause punishments to their staff.

“Issues of Bugamba People’s SACCO seem political and they wanted to intimidate one of our staff but otherwise Mutabarura is still our staff and he is working. We can’t suspend our staff just because of your chaos in changing leaders to me there was no case to answer” says Nuwagira

In his closing remarks, Magumba representing the registrar of cooperatives’ office said it was unfortunate for their staff but thanked Bugamba People’s SACCO members for exhibiting total discipline and patience to elect a new leadership.

Bugamba People’s SACCO which was formed in 2005, has a total of 1,744 members, with a share capital of shs 270,917,400, total savings of shs 227,102,653 and a loan portfolio of shs 707,917,587.

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Sugarcane Cooperatives Will Save Farmers

MASINDI – On his inauguration day, May 20, Cosmas Byaruhanga promised to use his second term as Masindi District LCV chairperson to get farmers in all sectors in the western district organized into cooperatives, especially sugarcane cooperatives.

“We are going to mobilize farmers to organize themselves into cooperatives because when they are in cooperatives they will be understanding each other. This will also help them have a bargaining ground to demand what is due to them,” said Byaruhanga, who said is serving his last term as LC-V chairman.

He was sworn into office together with all elected district leaders by Masindi Chief Magistrate, Johnson Ssejjemba at the district headquarters.

Byaruhanga also said he wants to ensure that sugarcane farmers are organized into cooperatives.

“Sugarcane is the backbone of Masindi. It pumps more than Shs 3 billion in the district in a year. All the developments you are seeing in Masindi are because of sugarcane,” Byaruhanga explained.

In all, 38 councilors were sworn in from 18 sub counties and town councils, which form Masindi District.

https://thecooperator.news/form-cooperatives-with-a-purpose-masindi-lc-v/

The function was also attended by the newly elected members of parliament; Kenneth Kiiza Nyendwoha for Bujenje Constituency, Ronald Akugizibwe Aled, for Buruli County and Joab Businge, for Masindi Municipality.

They all promised to work with the LC-V to develop the district.

Background

Earlier this year, Byaruhanga pushed for the revival of all sugarcane cooperatives formed by sugarcane farmers in the 1970s.

“Sugarcane cooperatives are so necessary. They would help sugarcane farmers during times of crisis. These sugarcane cooperatives existed and we are now going to trace their registration numbers. I know they are there with the registrar of cooperatives,” said Byaruhanga, who is also the chairperson of Masindi District Sugarcane Farmers Association Limited (MASGAL). He was speaking then during an extra ordinary meeting for Bwijanga Coffee Farmers Cooperative in Bwijanga Sub County.

Byaruhanga explained that they need to revive sugarcane cooperatives so that they can form a union, which will give them a firm bargaining ground to lobby for their own sugar factory.

“If we want to get our own sugar factory, that’s the only way to go. Let’s unite into cooperatives if we are to address our challenges,” he noted.

He added that sugarcane farmers are grappling with many challenges such as over grown cane, spillage, low prices and too much cane.

“These challenges can be addressed when we have got our own sugar factory. We have a lot of cane which can feed it.

According to the statistics from MASGAL, there are over 7000 sugarcane out growers in Masindi district producing around 1.2 million tons of sugarcane.

Byaruhanga is optimistic that with this number they can get a sugar factory and sustain it.

Buy your copy of thecooperator magazine from one of our country- wide vending points or an e-copy on emag.thecooperator.news

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Sugarcane Cooperatives Will Save Farmers

MASINDI – On his inauguration day, May 20, Cosmas Byaruhanga promised to use his second term as Masindi District LCV chairperson to get farmers in all sectors in the western district organized into cooperatives, especially sugarcane cooperatives.

“We are going to mobilize farmers to organize themselves into cooperatives because when they are in cooperatives they will be understanding each other. This will also help them have a bargaining ground to demand what is due to them,” said Byaruhanga, who said is serving his last term as LC-V chairman.

He was sworn into office together with all elected district leaders by Masindi Chief Magistrate, Johnson Ssejjemba at the district headquarters.

Byaruhanga also said he wants to ensure that sugarcane farmers are organized into cooperatives.

“Sugarcane is the backbone of Masindi. It pumps more than Shs 3 billion in the district in a year. All the developments you are seeing in Masindi are because of sugarcane,” Byaruhanga explained.

In all, 38 councilors were sworn in from 18 sub counties and town councils, which form Masindi District.

https://thecooperator.news/form-cooperatives-with-a-purpose-masindi-lc-v/

The function was also attended by the newly elected members of parliament; Kenneth Kiiza Nyendwoha for Bujenje Constituency, Ronald Akugizibwe Aled, for Buruli County and Joab Businge, for Masindi Municipality.

They all promised to work with the LC-V to develop the district.

Background

Earlier this year, Byaruhanga pushed for the revival of all sugarcane cooperatives formed by sugarcane farmers in the 1970s.

“Sugarcane cooperatives are so necessary. They would help sugarcane farmers during times of crisis. These sugarcane cooperatives existed and we are now going to trace their registration numbers. I know they are there with the registrar of cooperatives,” said Byaruhanga, who is also the chairperson of Masindi District Sugarcane Farmers Association Limited (MASGAL). He was speaking then during an extra ordinary meeting for Bwijanga Coffee Farmers Cooperative in Bwijanga Sub County.

Byaruhanga explained that they need to revive sugarcane cooperatives so that they can form a union, which will give them a firm bargaining ground to lobby for their own sugar factory.

“If we want to get our own sugar factory, that’s the only way to go. Let’s unite into cooperatives if we are to address our challenges,” he noted.

He added that sugarcane farmers are grappling with many challenges such as over grown cane, spillage, low prices and too much cane.

“These challenges can be addressed when we have got our own sugar factory. We have a lot of cane which can feed it.

According to the statistics from MASGAL, there are over 7000 sugarcane out growers in Masindi district producing around 1.2 million tons of sugarcane.

Byaruhanga is optimistic that with this number they can get a sugar factory and sustain it.

Buy your copy of thecooperator magazine from one of our country- wide vending points or an e-copy on emag.thecooperator.news

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SACCO Demands Leadership Audit

SHEEMA – Members of Kitagata Savings and Credit Co-Operative Society have signed a petition urging the Chief Executive Officer of Uganda Microfinance Regulatory Authority, UMRA, to audit the SSACCO leadership.

In their letter dated April 14 2021, SACCO members demanded a leadership audit into what they called “inflated and fraudulent financial reports presented during their annual general meeting (AGM), insider money lending to relatives and sharing of SACCO funds amongst the management, which contravenes section 95(a) of the Sacco by-laws.”

They also accuse their leaders of misappropriating Shs 2.2million.

The SACCO, formed around 1993-1995, currently has over 4,000 members.

Last weekend, a petition circulated widely showing that Kitagata, once a vibrant SACCO in Sheema District, was struggling and teetering on the brink of collapse.

“In western Uganda, it was Kyamuhunga and Kitagata on top of financial management but if you can check now Kyamuhunga People’s SACCO is now modern. You can even bank using the internet while for us with a membership of over 4,000 we are struggling and on the brink of collapse. I think we need to fight hard to restore our lost glory,” Laban Muhabwe, a retired police officer, said.

Muhabwe, a member of Kitagata SACCO, accused the District Commercial Officer of Sheema of interfering with the SACCO operations.

https://thecooperator.news/mushanga-sacco-celebrates-50-years-of-growth/

“I was appointed as the secretary of the supervisory committee but because I brought out issues, which were pertinent, Allan expelled me from the committee. But is it the work of the commercial officer to expel any members from the SACCO committee?” Muhabwe asked.

Muhabwe said the commercial officer also used his powers to remove him from the supervisory committee and appointed a new vetting committee usurping all the powers of the SACCO management.

“I was also among the candidates vying for the chairmanship seat, so why didn’t they leave the vetting committee to do its work without interference? Muhabwe asked.

He also alleges that the district commercial officer has been colluding with the manager to swindle SACCO funds.

“I am corrupt free and I won’t allow them to take our money again. That’s why he appointed a new vetting committee when we still had a serving committee? You can see how his actions stifle the performance of Kitagata SACCO,” Muhabwe emphasized

Muhabwe, who served as chairman of Exodus SACCO between 2012-2014, said he is ready to turnaround the fortunes of Kitagata SACCO.

“I moved Exodus SACCO from Shs 1.8billion to Shs 7-8 billion within two years then I retired in 2015. So why do you deny me a chance to take on the leadership of Kitagata SACCO where I am a fully-fledged member with over two million shares?” he asked.

Alfred Nuwamanya, another member, said most of the sticking issues would have been addressed during the last AGM but it ended prematurely after the commercial officer suspended elections of the new board committee.

Edith Tusuubira, the Executive Director of Uganda Micro Finance Regulatory Authority, confirmed receiving the SACCO’s petition for a leadership audit.

Frank Besigye Kyerere, the Resident District Commissioner (RDC) of Sheema, said he had not received a copy of the petition nor word from UMRA.

He warned however, that misappropriating members’ savings can lead to arrest and prosecution of the errant SACCO managers.

“I haven’t gotten any copy but I just say it’s unfortunate. You see a SACCO is a body corporate if you are a leader of a SACCO and you embezzle funds you should be charged,” he said.

Karakure Buhanda Allan, the District Commercial Officer of Sheema blamed the Kitagata saga on Muhabwe.

“There is no way you can call a general meeting of over 10,000 members yet members hold their pre-AGMs in their respective villages,” Allan said.

He said Kitagata SACCO is now recovering from the entrenched losses it suffered under the old management.

“From 2005 they had a dormant board, which was led by Rev Bashoborwa. The then manager had taken control of the institution and was fraudulent. And to me for the last four years Kitagata has been on a recovery course.” he said.

He said the former manager was also charged with embezzlement after causing financial loss of over Shs 180 million.

Allan confirmed that the SACCO board had expired in 2019 but the outbreak of Covid-19 never allowed Kitagata to hold any AGM.

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SACCOs Tipped On Playbook For Success

KWANIA – Cooperatives should follow a basic playbook for success which has a blend of good financial character and good governance, Patrick Bura, the District Principal Commercial Officer of Kwania, has said.

Bura offered the management tip while officiating at the recent Annual General Meeting (AGM) of Ikwera Co-operative Savings and Credit Society Ltd at Aduku town council in the northern district of Kwania.

The AGM was attended by about 900 members from the sub-counties of Abongomola, Nambieso, Chawente, Inomo, Akali, Ayabi, Atongtidi and Aduku.

On the same day, Ikwera SACCO elected a new board to run its affairs for the next four years.

Robert Odur, the former SACCO chairperson retained his job, Acayo Molly Grace is the new vice chairperson, Sister Molly Grace (treasurer), and Opio Nam Joseph (general secretary).

Awor Dilish, Adupa Bilington, Lawrence Etin, Ngu Jasper, and Ocaka Sarafina were elected members of the committee.

SACCO delegates elected

The meeting also elected 22 SACCO delegates representing 11 sub-counties in Kwania district.

“It is the duty of the delegates to formally and informally educate the SACCO members. It is their duty to spread the SACCO gospel to potential members.” Bura said.

A 2019 forensic audit found that Ikwera SACCO had made a loss of Shs 245m after unknown assailants broke into its premises and stole members’ savings. A security guard identified as Bonny Doi was arrested.

https://thecooperator.news/saccos-urged-to-embrace-tech-digital-lending/

“The robbery took place amidst loud sounds of door breaking, safe dismantling and wall digging at night but Doi, the SACCO’s security guard, failed to make an alarm or call police officers at Kwania police station, which is less than 500 meters away,” Felix Oguna, the SACCO manager said, adding, “that prompted his arrest, investigations are ongoing although we have not recovered the money.”

Bura however, urged the new board to ensure good governance, which includes having credible leadership that implements good management practices.

“Given the turbulence it has had before, the SACCO is now on track. But it can only keep on track if the board is not selfish and practices good corporate governance,” he said.

He said a strong foundation for any cooperative starts with leaders who are willing to dedicate their time and resources to developing the SACCO.

“Your SACCO’s philosophy is savings and credit so members must be ready to save and save regularly to be able to access credit, which they must repay in time.” he explained.

George KK Akaca, the Aduku Town Council area councilor, urged prudence in appraising individual loan applications to avoid lending money to defaulters.

“Poor appraisal of loan applicants by loans officers has led to the collapse of many cooperatives,” he warned. He said a proper appraisal should take into consideration the applicant’s assets and carefully record their addresses.

“Otherwise, in no time you will find that they have gone bankrupt, or you cannot trace them, and it would be very hard for the SACCO to recover its money,” he said.

Growing SACCO

According to Ikwera SACCO’s General Manager, Felix Oguna, the SACCO, which was started in 2010, currently has 1,129 members.

The SACCO’s loan portfolio shot from Shs 540m to Shs 762m last year. It projects to have saved at least Shs 900m by the end of 2021.

“The SACCO has a number of challenges which include poor loan recovery, delay in loan payment, limited loan fund and high cost security provision among others, but now that we have the delegates in place, slowly the problems will come to an end,” Oguna said.

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Struggling SACCO Appeals For Bailout

HOIMA – A struggling Teachers’ Saving and Credit Co-operative Society (SACCO) in Hoima Oil City is appealing for a government financial bailout – with good reason.

The 175 member Hoima Municipality Teachers SACCO which started in 2018 offers cheap loans of at least 8% interest rate to only government teachers.

There are about 500 government teachers in Hoima city.

Moses Ayebale, the SACCO chairman, said the SACCO is struggling to grow because it lacks funds.

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He said the SACCO was fully registered in February 2019 and has saved over Shs 10 million but the teachers’ demands for loans outstrip its savings.

Ayebale said the high office rent, payment of staff, lack of furniture and other office equipment such as computers are crippling the SACCO.

“We had employed a full time manager but because of inadequate funds to pay him we agreed that he should work three days a week,” Ayabale said.

He said the government should invest in the struggling SACCO to help teachers turnaround their livelihoods and avoid expensive bank loans. He also urged the government to get experts to train them in skills and knowledge of managing the SACCO.

“If the government injects money in our SACCO, we shall be able to meet the teachers’ high demand for loans. And again, there is no harm if the government can provide us with experts to monitor this SACCO. If they can convene a meeting, train us and provide us with tools, it will help us manage our SACCO because we teachers, are not trained in financial management,” he said.

Ayebale said they managed to lobby for Shs 65 million from the government salary loans kitty of Shs 25 billion injected in Walimu Sacco. He said 12 teachers out of the 30 corded within Hoima city have already benefited from the funds.

“To be corded, one must be an active member of the SACCO and on the government payroll. The recovery of the Shs 65 million is good because it only benefits corded teachers. The teachers benefiting from Walimu SACCO salary loans pay 15% interest and 7% of the 15% is given to our SACCO.” he said.

He added that the SACCO expects to get another Shs 200 million from Walimu once the borrowed Shs 65 million is recovered.

Johnson Kusiima Baigana, the Hoima City Principal Education Officer, said the SACCO will save teachers from acquiring high interest loans from banks, which pile pressure on them.

“You find a teacher having loans in more than one bank with high interest rates. When they fail to pay, banks start harassing and chasing them around like thieves. This affects their concentration in class because they are looking out of the window to see who comes into the school. They are ready to take off,” he said.

“The government has a hand in this Teachers’ SACCO because its the government through our president, that encouraged teachers to form SACCOs and even injected billions of shillings in Walimu SACCO to save them from borrowing from banks.” he said, adding that, “We thought our SACCO was going to get soft loans for teachers but we found some challenges at the national level, they have not kept their promises because money is not flowing as we expected.”

“We are going to engage Walimu SACCO managers to find out what went wrong because teachers apply for the money and they get no response.” he said.

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