Will NAADS seedlings avert food insecurity for Atiak Sugarcane Growers?

AMURU, Uganda: Government is giving away seedlings to Sugar cane farmers in the districts of Gulu, Lamwo, Amuru and Adjumani to forestall an anticipated food scarcity in the Atiak sub-region, theCooperator has learnt.

The farmers, grouped under their cooperative -Atiak Sugar Plantation Out Growers Co-operative Society Limited(ASOGCSL), are predominantly commercial Sugarcane growers, with very limited participation in food crop production.

Now, The Cooperator has established that the National Agricultural Advisory Services(NAADS) through Operation Wealth Creation(OWC) has released 10 tons of high quality beans for the cooperative’s members, to grow and avert a food crisis in the area.

ASOGCSL has over 4070 members, 80 percent of whom are women. The other 20 percent are men, majority of whom are ex- LRA combatants.

Speaking to the Cooperator during one of the seed distribution exercises in Pupwonya and Pabbo parishes in Amuru, the cooperative board chairperson, M/s Joyce Santa Laker hailed government for coming in to support the vulnerable women with agricultural inputs:

“This (issuance of seeds) to the women members under our cooperatives is a good boost towards addressing the challenge of food shortages in northern Uganda. As they concentrate on sugar cane growing for commercial purposes, they will also get time to grow food for home consumption,” she said.

Each member household is to get 10kgs of bean seeds, theCooperator has learnt. “We shall distribute 5 tons in Lamwo and Gulu and another 5 tons in Amuru and Adjumani. Each pack of 10kgs can be planted in one acre of land within the Sugar cane plantations. A total of 1000 families will get the improved bean seeds,” said Laker.

In the past, questions have abounded about the quality of seedlings supplied by OWC, with some alleging that some seedlings do not germinate, while others have suggested that released inputs do not reach intended beneficiaries.

But the beneficiaries that thecooperator talked to, acknowledged that the seeds had germinated with the start of the rain season. “We’re planting the beans within our sugarcane plantations, and they are growing well,” said Rose Ageno, one of the beneficiaries from Amuru district.

In 2014, government inaugurated OWC to complement and improve efficiency of the NAADs program. OWC was charged with the oversight function of monitoring, evaluation and effective coordination of service delivery of both inputs and progressive growth, while NAADS remained in charge of the procurement process of the necessary inputs.

Agriculture remains the backbone of Uganda’s economy, significantly contributing to national food security and nutrition, job creation and incomes for the majority of the population.

The sector currently employs 73% of the total labour force (formal and informal), 77% of whom are women, and 63% youth, mostly residing in the rural areas. In its 2015/16-2019/20 strategic plan, the sector (Agriculture) identified four priority intervention areas namely: increasing production and productivity; addressing challenges in the selected thematic technical areas including provision of critical farm inputs, mechanization and water for agricultural production; improving agricultural markets and value addition in the 12 prioritized commodities; and institutional strengthening for agricultural development.

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Police surround Bugisu Cooperative Union as Court blocks elections

Bugisu Cooperative Union (BCU) was barred from conducting their 2018 Annual General Meeting (AGM) and elections, on the slated date of 15 November 2018.

Police deployed heavily at the BCU factory premises in Mbale town where the AGM was supposed to be held, to prevent the delegates including the union leaders and staff from accessing the premises.

This followed a court injunction by Lady Justice Mugambe due to a petition filed by Budidi Growers Cooperative society led by Mr. Julius Nakiyi.

The petition seeks a judicial review into the operations and management of BCU. In their petition they accused the Hon. Nathan Nandala Mafabi Board of setting up some rules that are not in the by-laws of BCU, for example, setting minimum academic qualifications for one to be a Director, giving two weeks’ time for one to apply, which is against the 60 days stipulated in the by-laws, among others. Consequently, the Court postponed the AGM and elections.

In September 2018, Mbale High Court issued an injunction, stopping the BCU Board led by Hon. Nandala Mafabi from handling the affairs of the Union. The Court argued that their term of office had expired. This was a result of a petition filed by Five farmer groups, members of BCU.

Hon. Mafabi has served as BCU Chairperson for two consecutive terms since 2014. In the latest term, he was elected in 2016 and his term of office expired in March 2018.

On 6 November 2018, BCU advertised Board positions in the media.

The advert stipulated that applicants for the Board positions must possess a minimum of an Ordinary Level certificate or its equivalent, must be a member of a registered Primary Society, must have supported their society in the last two consecutive years, must not be indebted to their cooperative or BCU and must be delegates to BCU. Proven experience in cooperatives, public affairs, business and civic activities was a pre-requisite. Applications were required by 9 November 2018.

While speaking at the botched AGM, Hon. Frederick Gume Ngobi, the State Minister for Cooperatives asked the police officers to allow him to address the delegates and in his speech, he confirmed the postponement of the meeting until the ruling which is expected next Thursday 22 November 2018. He however revealed that the Nandala led board will continue running the Union until the 22 November court ruling. He called for calmness among the farmers and leaders as they await the court ruling.

Hon. Nathan Nandala Mafabi, the Chairman of Bugisu Cooperative Union, who also doubles as the Member of Parliament for Budadiri West in Sironko district revealed that they are going to adhere to the court order.

“This is an inconvenience because we had planned for this meeting since March 2018. Unfortunately, we cannot proceed with our meeting because of the Court injunction which was filed by people with selfish interests. Those who filed the petition are not even farmers. They think that they will manipulate the system and seize the property of the Bagisu but this will not happen. Another opportunity will come and we will hold an election,” said Hon. Nandala Mafabi.

L-R: Hon. Frederick Gume and Hon. Nandala Mafabi at the BCU Offices

Hon. Gume said the manner in which members file petitions hurts the Union. “I am happy that the Court has given a directive that members of cooperatives must obtain resolutions from their cooperative, before filing a petition against the Union,” the Minister said.

BCU has faced tumultuous leadership challenges, including allegations of abuse of office, lack of transparency, mismanagement of funds.

The Nandala leadership denies the allegations and instead accuses government of political interference.

BCU is one of Uganda’s surviving cooperative unions, and is one of the leading exporters of Arabica coffee in the country.

END.

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SACCO Managers accused of taking Bribes from Loan applicants

SACCO managers have been advised to uphold professionalism and prudent accountability practices, in order to boost rural access to financial services.

The statement was made by Mr. Patrick Todi, the District Commercial Officer of Katakwi, following the rate at which registered SACCOs are collapsing in the district. SACCO members are accusing managers of embezzlement.

Despite the pivotal role SACCOs play, they still have many challenges, including a high rate of bad loans. Managers should be able to come up with innovative measures to recover these loans,” he said.

Mr. Todi blamed the high rate of non-performing loans in the SACCOs on malpractices and bribery of management during the loan application process, which later affects the recovery process.

He also highlighted that there have been cases of embezzlement and poor management of funds which is a threat to the development of SACCOs.

Mr. Todi said there is need for SACCO managers to upgrade their managerial skills to meet the standards of efficient fund management, warning that they will not tolerate more fraud or malpractices.

On the other hand, he encouraged Ugandans to embrace SACCOs as a way of kicking out poverty.

He noted that SACCOs have contributed a lot in fostering economic development by offering financial services, particularly loan and savings products to people with limited access to commercial banking services.

SACCOs promote a saving culture and provide loans to support income-generating activities that elevate the standard of living for rural populations.

Feedback from SACCO Managers

Mr. Jean Bosco Okiror, the Manager of Katakwi high school staff SACCO said that non-automated accounting systems are a challenge that impedes supervision.

He explained that most SACCOs are using manual accounting processes which increase the risk of fraud, errors and inconsistencies in data.

‘Among the rapid solutions to improve accountability at Katakwi High School staff SACCO, the SACCO will deploy external auditors’ Mr. Okiror said.

Mr. Charles Edangat, a member of Kaikamosing saving and credited cooperative society in Magoro sub-county cited challenges in the flow of communication, where they send their inquiries to the office of the managers and wait for months with no feedback. This affects their performance.

He also talked about the issues of poor collaboration in the audit process where they are not given an opportunity to hold managers and board members accountable.

END.

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Kenyan Gov’t sets maize price at Ksh 2,300, targets 2.5 million bags

The Kenyan government has announced that it will buy maize being harvested now at Ksh 2,300 per 90kg bag, potentially setting the stage for conflict with farmers already suffering losses from the last season.

The announcement was made Monday afternoon by the Strategic Food Reserve Fund (SFRF), which intends to buy 2.5 million bags from the 2018/19 harvest.

TREASURY FUNDS

SRFR chairman Noah Wekesa said they will start buying the maize once the National Treasury avails funds.

“The Purchase of the stock will start through our contracted agent, the National Cereals and Produce Board (NCPB), as soon as funds are availed by the National Treasury,” Dr. Wekesa said during a press briefing at the Devolution ministry boardroom at Teleposta Towers, Nairobi.

Asked why the board lowered the price it offered last year, he said the country is not short of maize due to last year’s bumper harvest.

He also cited dynamics brought about by large imports during the duty free window ordered by the government mid last year.

“We are also trying to balance the interests of farmers against those of consumers. Raising the price to Ksh 3,200 as was the case last year would mean that the retail price would go up,” he said.

PAYMENTS

Dr. Wekesa noted that the government has released Ksh 2.13 billion to pay farmers owed for produce delivered in 2017.

Of all those who delivered maize to the NCPB in 2017/18, at least 226 have not been fully paid.

In addition, the Ethics and Anti-Corruption Commission has had issues with 62 farmers, who have to be cleared before they are paid.

“The balance of 164 farmers, who have no issues, will be paid within the next two weeks,” he said, flanked by members of the fund.

They are Mr. Gerald Masila, Mr. Charles Owino, Ms. Susan Mukiri and Acting Fund Manager Omar Salatt.

‘BAD MAIZE’

The Ministry of Agriculture last week declared that at least 1.8 million of the current stock in the Strategic Food Reserve is unfit for both human and animal consumption.

The fund, which owns the stock, refused to be dragged into the issue.

The board further said it learnt of reports about the state of the maize through the media.

It however regretted that both the ministry and the Kenya Bureau of Standards (Kebs), which conducted investigations, have not furnished the board with the report of their findings.

Dr. Wekesa said the board will engage Kebs and independent players in quality assessment, to determine the true status of the maize.

A decision will then be made on how to dispose of the maize.

Daily Nation

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Cooperatives are the Solution to Africa’s Biting Poverty – Says Okello

By Patrick Jaramogi

The CEO of The Uhuru Institute for Social Development, Mr. Leonard Okello has emphasized that cooperatives are a pragmatic solution to Africa’s poverty challenges. The philosophies of inclusiveness and member-centred development, which cooperatives embody, make the cooperative business model an ideal vehicle for economic growth.

Africa is the second largest continent in the world. By this reckoning, the African continent should be in the realm of the richest countries. However, the truth is the exact opposite. Africa’s population is more than twice that of the United States, but its total income is not much more than Belgium’s. The median Gross Domestic Product (GDP) per African country is $2 billion.

Mr. Okello noted that Africa as a continent is vast and rich in resources that can help propel its position on the global scene. He observed that despite the recorded economic growth registered in Africa in recent years, with over one-third of Sub-Saharan Africa countries posting 6% or higher growth rates, and another 40% growing between 4% to 6% per year, these figures can hit the sky if Africans are organized under cooperatives.

“If cooperatives unite, work as teams, and have their members build capacity in value addition and standardization, their products that are much on demand in Europe will lead to increase in exports and thus more foreign exchange for African countries,” Mr. Okello said.

He was presenting a paper, the political Economy of Cooperatives and Development in Uganda at the Coop Tree Leadership Orientation workshop, held at the Kyoto Spiritual Resort in Namugongo. The workshop, which runs from 4-7 November 2018 is attended by cooperatives that emerged best in the Plant a Coop Tree competition. They include: Munaku Kaama SACCO, Katesani SACCO from Ibanda, Kikooba United Cooperative Society, Bulangira Farmers SACCO and Nebbi Transporters Cooperative Society.

Members of Cooperative Societies, during a fitness session

Mrs. Jane Amuge Okello, the Operations Director at The Uhuru Institute said the organisation is in place to inspire citizens to generate wealth for prosperity. She noted that with value addition coupled with proper skills development, cooperatives can be a better solution to address the biting poverty in Africa.

END.

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Bugisu Cooperative Union bids to replace Nandala led board

By Patrick Jaramogi

Embattled Bugisu Cooperative Union (BCU) has formalized steps to fill the vacant positions in its Board, The Cooperator magazine has established.

BCU is registered under the Cooperative Societies Ordinance of 1948. They are among the leading exporters of Arabica coffee in the country.

In an advertisement placed in the media, the Union called for applications from suitably qualified members of the BCU to fill the 9 vacant posts of the Board of Directors. The Board consists of 9 members drawn from each of the nine zones in the Mt. Elgon area.

The call for new bids follows a Mbale High Court injunction issued in September 2018, stopping the BCU Board led by Hon. Nandala Mafabi from handling the affairs of the Union. The Court argued that their term of office had expired.

Five farmer groups, members of BCU had petitioned the High Court, against the Board led by Hon. Nandala Mafabi, claiming that he could not continue transacting business on behalf of the Union when their term had expired in March 2018.

Court ruled in favour of the farmer groups. The Board was instructed to stop handling the affairs of BCU until a fresh election is held.

Hon. Mafabi has served as BCU Chairperson for two consecutive terms. In the latest term, he was elected in 2016 and his term of office expired in March 2018.

BCU is one of Uganda’s surviving cooperative unions. However, it has been marred by leadership challenges, including allegations of abuse of office, lack of transparency, mismanagement of funds.

The Nandala leadership denies the allegations and instead accuses government of political interference.

Applicants for the Board positions must possess a minimum of an Ordinary Level certificate or its equivalent, must be a member of a registered Primary Society, must have supported their society in the last two consecutive years, must not be indebted to their cooperative or BCU and must be delegates to BCU. Their society must have delivered a minimum of 2500 kgs of coffee as required in the Bye law. Proven experience in cooperatives, public affairs, business and civic activities is a must.

Applicants will be vetted by a competent Committee, appointed by the Registrar. Recommendations of the Committee will be forwarded to the Annual General Meeting. Credentials must be submitted by 9 November 2018.

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American Firm that bought Cooperative Bank loans from BoU, closed 6 years ago

On Monday, 5 November 2018, the Daily Monitor run a story claiming that Nile River Acquisition Company, the one that bought Coop Bank’s loans from Bank of Uganda (BoU) could not be traced. However, the Cooperator magazine has uncovered information that points to the fact that the company was owned by Octavian Advisors, a Hedge Fund that closed over 6 years ago, in 2012.

According to the Auditor General’s report on BoU’s closure of Banks, Nile River Acquisition Company Limited offered to buy the loan portfolio of 3 banks; International Credit Bank Limited (1998), Greenland Bank (1991), and The Cooperative Bank (1999) at 10 million dollars. The portfolio was worth UGX 135 billion, and included UGX 34 billion worth of secured loans. In his report, the Auditor General questions the decision to sell secured loans to Nile River Acquisition Company.

The Auditor General, Mr. John Muwanga noted that the company got the bank loans at a 93% discount. Defending its decision, Bank of Uganda’s Director of Communication Ms. Charity Mugumya told the Daily Monitor newspaper that Nile River was buying a portfolio which would be difficult to recover and it was against this basis that it got it at that rate.

Who owns Nile River Acquisition?

The Auditor General, in his report notes that JN Kirkland & Associates, the Bank’s consultants at the time, evaluated the remaining assets of the closed banks and identified a suitable firm, M/s Octavian Advisors, LP which expressed interest to purchase these assets at USD 10 million from BoU. Following further negotiations with BoU, Ms. Octavian Advisors, LP registered Nile River Acquisition Company in order to transact with BoU. Information available to the Cooperator reveals that the company was incorporated in Mauritius.

However, a Reuters article reveals that Octavian shut down over 6 years ago, and Richard Hurowitz the firm’s CEO is quoted in the article, telling his firm’s investors by letter that they would be refunded.

The company did not register in Uganda after incorporating in Mauritius and the Uganda Registration Services Bureau had no knowledge of its existence.

END.

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American Firm that bought Cooperative Bank loans from BoU, closed 6 years ago

On Monday, 5 November 2018, the Daily Monitor run a story claiming that Nile River Acquisition Company, the one that bought the Cooperative Bank’s loans from Bank of Uganda (BoU) could not be traced. However, the Cooperator magazine has uncovered information that points to the fact that the company was owned by Octavian Advisors, a Hedge Fund that closed over 6 years ago, in 2012.

According to the Auditor General’s report on BoU’s closure of Banks, Nile River Acquisition Company Limited offered to buy the loan portfolio of 3 banks; International Credit Bank Limited (1998), Greenland Bank (1991), and The Cooperative Bank (1999) at 10 million dollars. The portfolio was worth UGX 135 billion, and included UGX 34 billion worth of secured loans. In his report, the Auditor General questions the decision to sell secured loans to Nile River Acquisition Company.

The Auditor General, Mr. John Muwanga noted that the company got the bank loans at a 93% discount. Defending its decision, Bank of Uganda’s Director of Communication Ms. Charity Mugumya told the Daily Monitor newspaper that Nile River was buying a portfolio which would be difficult to recover and it was against this basis that it got it at that rate.

Who owns Nile River Acquisition Company?

The Auditor General, in his report notes that JN Kirkland & Associates, the Bank’s consultants at the time, evaluated the remaining assets of the closed banks and identified a suitable firm, M/s Octavian Advisors, LP which expressed interest to purchase these assets at USD 10 million from BoU. Following further negotiations with BoU, Ms. Octavian Advisors, LP registered Nile River Acquisition Company in order to transact with BoU. Information available to the Cooperator reveals that the company was incorporated in Mauritius.

However, a Reuters article reveals that Octavian shut down over 6 years ago, and Richard Hurowitz the firm’s CEO is quoted in the article, telling his firm’s investors by letter that they would be refunded.

The company did not register in Uganda after incorporating in Mauritius and the Uganda Registration Services Bureau had no knowledge of its existence.

END.

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Coop Tree Learning Visit to Kenya, in pictures

Purchasing souvenirs at a Masai shop at the Rift Valley
The team visited the Imenti Tea Factory in Meru. Imenti tea factory is owned by members of Yetu SACCO
At Mr. Philip Kiruki’s dairy farm in Meru
The Uhuru Institute CEO Mr. Leonard Okello (R) hands over a copy of the Cooperator Magazine to the CEO of Mwalimu SACCO, CPA Alphonse Kaio
Part of the team, at the Mwalimu Towers, offices of Mwalimu National
The team took photos at the Mwalimu SACCO Water feature
Francis Lulahali, Uhuru Institute member of staff, and members of Munaku Kama, at Yetu Offices. Yetu SACCO has won several accolades in the cooperative industry
Meet Patrick Jaramogi, part of theCooperator Magazine team
The team also visited Uganda House, in Nairobi
Munaku Kama SACCO members during a briefing session facilitated by Denis Tukahikaho (PhD).
Munaku Kama members and The Uhuru Institute team, at Yetu SACCO in Meru
The Munaku Kama team and The Uhuru Institute senior staff during the meeting with top Mwalimu SACCO management in Nairobi

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The Kenyan SACCO whose factory supports 5,000 farmers

Tea farmers in Meru, Kenya are grateful to the YETU for providing an instant market for the tons of tea that they grow. Yetu Sacco was formed by tea farmers who came together in 1990 in an effort to try and help themselves. It was officially registered with the ministry of co-operative on 23/09/1991.

The fast-growing cooperative that started with just 200 members today has over 20,000 members with scores of branches spread across Kenya. Yetu Sacco agents are outlet shops offering banking services to their members. The Sacco CEO Mwiti Rukaria said the members are able to open up new accounts, make cash withdrawals, pay school fees, check bank balances as well as cash deposits.

Located at Nkubu town, a town located in Eastern Province of Kenya, Yetu Sacco is also the first Sacco to start a biometric ATM for their members.

A Ugandan SACCO, the Munaku Kaama Savings and Credit Cooperative Society that was in Kenya for a study tour were amazed that YETU also owns an eight-storey complex, (the MAJANI SACCO PLAZA) at Nkubu town. The plaza is fully funded by members who have contributed investment shares towards the building project.

Munaku Kaama Sacco that also visited the Imenti Tea Factory that belongs to the YETU Sacco tea farmers learned that the tea factory buys tea from the 5827 registered farmers.

Mr. Winston Ngiru, the Production Manager at the Imenti Tea Factory, said the 5827 farmers who supply the factory with fresh tea are supported with skills on crop husbandry on how to manage theirs over 3,000 acres of tea land.

The chairman Board YETU SACCO, Mr. Christopher Ndegwa said the purpose of starting the SACCO was to help the farmers raise school fees for their children.

“The proper organisation of the 200 farmers then led to the start of the YETU SACCO in 1991, now one of the top 10 best performing Cooperatives in Kenya.

The CEO, Mr. John Mwiti Rukaria said their dream is to be the leading cooperative financial institution by the year 2030. “Our difference is that every member has ownership rights and a duty in the running of the society, just like our brand name, ‘YETU,” he said.

Rukaria noted that the idea to start YETU was born in the minds of the few tea farmers from South Imenti driven by a common goal of accumulating their resources in a single pool in a view of accessing credit facilities at reasonable rates.

“The SACCO was registered in 1991 under the brand name of South Imenti Tea Growers Sacco Limited and we were only able to give out the first loan in 1994 after some years of savings from our members,” he said.

He said to in order to accommodate other members and bring them on board, they decided to welcome the entire public on board and thus the name was branded to YETU SACCO Limited.

“The SACCO has adapted new systems, developed a wide range of products and services, reviewed its policies to make sure that we remain one but for all,” he said.

Mr. Patrick Mwenda, the ICT Manager, said: “We have been having issues of engaging and recruiting the youth. Most youths of today are lured by technology, and we thus thought of a mechanism to advance our technology to lure them and this seems working out.”

The 12 Munaku Kaama members won the trip after emerging winners of the inaugural Uhuru Institute Plant A Coop Tree competition.

The team also visited the ¼ acre Mr. Philip Kiruki’s Pejima dairy farm in Meru.

The amazing factor is that with a small land Kiruki is able to hold a total of 30 high-quality Friesian cows that give him a minimum of 260 liters of milk each, each day.

“After retiring, I secured a loan of Ksh2 million that enabled me purchased the cows, machinery, and set up structures. Today I employ three permanent staff and one casual with my son helping me out as the manager,” he told the team at his home.

The Uhuru Institute Chief Executive, Mr. Leonard Okello said: “The most important factor that I have learned today, that I also expect others have learned the fact that you don’t need much land to do miracles. Some people have huge chunks of land yet producing so little.”

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