Sugarcane farmers up in arms over irregular loan deductions by Scoul

Sugarcane farmers from Greater Mukono and management of Sugar Corporation of Uganda Limited (Scoul) are expected to meet the Minister of State in the Office of the Vice President, Ms Diana Mutasingwa, to resolve a long-lasting row between both parties.

The row emanates from loans offered by Scoul to sugarcane growers who couldn’t manage terms and conditions set by commercial banks and other financial institutions.
The farmers not only claim that Scoul retains all the paperwork pertaining to the agreements, they further accuse the miller of diverting defaulters’ loans to out growers with whom they have no credit obligations.

Ms Joyce Nabatte, a sugarcane out grower from Mawokota Village, Kawolo II, Buikwe District, said Scoul deducted her money for the sugarcane she supplied them to offset a Shs2 million loan she claims she did not take.
“I recently supplied sugarcane to Scoul to enable me pay school fees for my children, but I am now stranded because my money was deducted to clear a loan I did not take,” she said in an interview on Wednesday.

Ms Milly Nazziwa, another famer, wants Scoul to scrap Shs13 million from her loan amortization schedule and refund the money paid in respect for sugarcane she supplied.
Mr Nathan Kizito, another farmer, said Scoul deducted Shs13 million from the Shs48 million he was paid for supplying sugarcane, yet he reportedly had no loan with them.

“I was deducted Shs13 million that I was paying for a defaulter called Ms Robin Nansubuga who I don’t know. I have never got a loan from Scoul and have all the evidence to that effect,” Mr Kizito said, seeking to refund the money that he said was irregularly debited from his account.

Mr Nehemiah Kitoke, another farmer, said he supplied Scoul sugarcane, but was reportedly deducted Shs2 million.
“When I approached the management, I was told to write a letter suggesting that I was paying for a defaulter identified as Katongole Kita who was being demanded Shs1.8 million.
“I unsuccessfully asked for evidence and contacted my lawyer who wrote to them, but I started receiving death threats until I gave up,” he said.

The meeting to be held today at Kawolo Sub-county headquarters in Lugazi municipality, comes after the Chairperson of Greater Mukono Sugarcane Out growers Cooperatives Society Limited, Mr Julius Katerevu, wrote to Scoul expressing the farmers’ concerns.

“It is on record that Mr Wilberforce Mubiru (Manager Administration Scoul) promised to meet the aggrieved farmers who were unfairly affected by some of the Scoul’s alleged fraud loans, but up to now, nothing has been done,” Mr Katerevu’s letter dated August 6, 2024, reads in part.

According to Mr Katerevu, Scoul promised to meet the aggrieved farmers with Members of Parliament from Buganda Caucus at the same venue on July 22, 2024, but there was no such meeting.
But in an earlier meeting held in July, Buikwe South Member of Parliament, Mr Michael Lulume Bayiga, said: “Scoul must refund the farmers’ money as it tantamount to obtaining money by false pretence.”

He further urged the farmers to get a legal firm that will always represent them to avoid being cheated, especially when drafting a Memorandum of Understanding.

During that same meeting, Scoul Deputy General Manager in-charge of Administration, Mr Wilberforce Mubiru, acknowledged the farmers’ complaints, saying the irregularities were by their managers who have since been sacked, adding that they will listen to farmers’ grievances, especially those with evidence and supporting documents.