Prime
Govt seeks to revive Co-operative Bank
Minister of State for Cooperatives, Mr Frederick Ngobi Gume (right) and UCTU Chairperson, John Musila, inspect some of the trucks at Kawempe Division, Kampala. Photo/File
What you need to know:
The bank was closed in 1999 due to mismanagement.
Government will next week start the process to acquire a licence to revive the defunct Co-operative Bank, the Co-operatives minister has said.
While launching the revival of Uganda Co-operative Transport Union (UCTU) in Kawempe Division, Kampala, yesterday, Mr Frederick Ngobi Gume, the minister for Cooperatives, said: “We were told the bank licence expired. We want to renew the licence. We want a bank that belongs to the co-operative people and they can get loans with interest rates in single digit figures.”
The Co-operative Bank was started in 1964 but closed in 1999 after years of mismanagement. The closure left union members in trouble as their loans were transferred to commercial banks which charged high interest rates.
Many of the bank’s clients lost their property after it closed.
Mr Gume said the revival of the bank will enable unionists to get affordable loans.
He said the revival of UCTU is a symbol of the government’s plan to revive co-operative associations.
Mr Gume said the cooperatives around the country should be encouraged to hire transport services of the UCTU to support its growth.
“There are many companies that are dealing in transport and have a good number of trucks and infrastructure. As you revive this union, you should operate with a business mind to be able to beat competition,” he said.
Mr Joshua Atukunda, the managing director of UCTU, said they have got five new trucks, cleared all debts, and employed more than 15 workers as they revive the once biggest national hauler.
“Our plan is to have 50 trucks in four years’ time. The government has given us Shs2b as compensation for what was destroyed during the war,” Mr Atukunda said.
Mr Atukunda said the government is expected to release another Shs8b to the UCTU to procure more trucks.
Mr John Musila, the chairman of UCTU, said the organisation has been in a terrible financial state that the former managers contemplated selling off its headquarters to be able to stay afloat.
Mr Musila, who is also a Member of Parliament for Bubulo East, said they still need government help.
Background
About UCTU
The Uganda Co-operative Transport Union (UCTU) was started in 1973 to empower co-operatives by providing cheap transport to them around the country.
In the 1980s, it was hit by a range of challenges after its facilities were attacked by the National Resistance Army (NRA) rebels. Most of its equipment, money and vehicles were stolen during the NRA bush war.
UCTU, which once had more than 1,000 workers and hundreds of trucks, was left with one truck, eight workers and a number of debts.
Even their main offices in Kawempe were occupied by the military, which uses them as a logistic and deployment base.
