Police surround Bugisu Cooperative Union as Court blocks elections

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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

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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

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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

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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

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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

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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

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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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