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Bugisu union officials in row over Shs9 billion
The building belonging to Bugisu Cooperative Union in Mbale Town. PHOTO BY FRED WAMBEDDE
What you need to know:
- Bugisu Cooperative Union (BCU), one of Uganda’s few surviving farmer-owned entities, is embroiled in wrangles over funds.
- Mr John Wamulungwa, the former union vice chairperson claims the union is currently “in coma” due to misuse of funds by the Nandala-led board.
- He said his board has accounted for all the money received from government.
Bugisu Cooperative Union (BCU), one of Uganda’s few surviving farmer-owned entities, is embroiled in wrangles over funds.
BCU, which is led by Budadiri West MP Nandala Mafabi, is squabbling with a group of farmers who were expelled from the union in 2016.
The disgruntled farmers led by Mr John Wamulungwa, the former union vice chairperson, accuse Mr Nandala of failing to account for about Sh9 billion, which the union received from government as compensation for losses it incurred after the former suspended the BCU board led by Mr Mafabi in December 2010.
“We have been tracking how BCU board is operating since 2008.We discovered that they have come to finish our union by stealing billions of money. The union leadership has failed to explain to us where the funds went despite our demand for accountability,” Mr Wamulugwa says.
He claims the union is currently “in coma” due to misuse of funds by the Nandala-led board.
“Nandala gives money to elders to buy their support yet they are not supposed to receive any money according to the law governing the cooperative,” he says.
He urges the police’s criminal investigations directorate (CID) to investigate the abuse of office, financial loss, embezzlement, money laundering and fraudulent accounting by the current BCU leadership. Mr Safiyi Mafabi, another delegate, says the board has failed to account for money realised from renting out union properties and sell of Doko land.
“Our board members are just sharing union money. We have enough evidence that the current BCU leaders stole the money,” he says.
Mr Lawrence Mafabi, another farmer, says: “Our plans to meet the President and share our grievances with him have been frustrated by our leaders who are compromised by Mr Nandala,”
Daily Monitor has, however, learnt that CID is currently investigating both the former and current union leaders over abuse of office, embezzlement and causing financial loss to the entity since 1995.
Mr Akimu Watenyere, a farmer, says the investigations were as a result of numerous petitions against Mr Nandala’s leadership, which is working to restore the glory of BCU.
When contacted, however, Mr Nandala dismissed all the allegations against him as untrue.
“The petitioners want to destroy BCU but this will not happen because the current leadership is designing future strategies of uplifting the union,” he said.
“That man (Wamulugwa) is a former vice chairperson BCU and he stole money. That is why he is running up and down confusing people with lies,” Mr Nandala said.
He said his board has accounted for all the money received from government.
The union vice chairperson, Mr John Musila, also said the union is operating normally and instead accused Mr Wamulugwa of selling union properties, buildings and several acres of land in Doko.
“Most of the union properties were sold off by the former union board, of which Mr Wamulugwa was part,” he said.
He said despite inheriting debts from the previous leadership, they have managed to settle all debts and initiated new plans.
“We have established a radio station called BCU FM and Union Sacco and we sponsoring about 103 students in the university,” he said.
However, Trade minister Amelia Kyambadde, when contacted, said she has never received accountability from the BCU current board.
“I have been asking BCU board for accountability, which I have never got,” Ms Kyambadde said.
The Ministry of Trade, Industry and Cooperatives handed over the management of BCU to a new board of directors in 2014.
BCU has been under government caretaker management since 2010 when the board of directors was suspended due to allegations of mismanagement and financial misconduct.
About union
BCU is owned by coffee farmers who are organised in primary societies. Each primary society keeps a register of its fully paid-up members, who elect a committee, which manages society’s affairs. Each primary society is represented by two delegates at an annual general meeting.
