Bugisu Cooperative Union officers told to refund sh25m
A total of nine former directors of the Bugisu Cooperative Union have been given two months to refund over sh25m they awarded themselves as retirement benefits.
By Joseph Wanzusi
A total of nine former directors of the Bugisu Cooperative Union have been given two months to refund over sh25m they awarded themselves as retirement benefits.
The union said the award was contrary to the laws governing co-operative organisations.
The resolution was passed by 700 delegates during the annual general meeting at St. Austin’s Social Centre in Mbale district on Friday.
Chairing the meeting, Nathan Nandala Mafabi said the decision was in line with the recommendations made after an inquiry into the union affairs in 2007.
The meeting demanded that former manager, Sam Wamuttu and his senior staff should also refund about sh1b, which was unaccounted for, unless documentary evidence is produced to the contrary.
A board member, James Netalisire, was nearly thrown out of the meeting over a debt of sh17m in rent arrears. He was given two months to pay the debt.
Delegates also resolved that the union starts negotiations with the Uganda Investment Authority over its land at Doko on the western outskirts of Mbale town.
The Government wants to build an industrial park on the land.
Nandala said the selling of the land was illegal, adding that the person who carried out the transaction did not have the mandate of the union.
Nandala proposed that the union contributes sh50m to support students from the region, who are studying in institutions of higher learning.
Addressing the delegates, the commissioner for co-operative development, Fred Mwesigye, urged cooperative unions to accept professional advice and to elect committed leaders.
He discouraged the unions from borrowing money, saying most unions found it difficult to repay the debts.
A total of nine former directors of the Bugisu Cooperative Union have been given two months to refund over sh25m they awarded themselves as retirement benefits.
The union said the award was contrary to the laws governing co-operative organisations.
The resolution was passed by 700 delegates during the annual general meeting at St. Austin’s Social Centre in Mbale district on Friday.
Chairing the meeting, Nathan Nandala Mafabi said the decision was in line with the recommendations made after an inquiry into the union affairs in 2007.
The meeting demanded that former manager, Sam Wamuttu and his senior staff should also refund about sh1b, which was unaccounted for, unless documentary evidence is produced to the contrary.
A board member, James Netalisire, was nearly thrown out of the meeting over a debt of sh17m in rent arrears. He was given two months to pay the debt.
Delegates also resolved that the union starts negotiations with the Uganda Investment Authority over its land at Doko on the western outskirts of Mbale town.
The Government wants to build an industrial park on the land.
Nandala said the selling of the land was illegal, adding that the person who carried out the transaction did not have the mandate of the union.
Nandala proposed that the union contributes sh50m to support students from the region, who are studying in institutions of higher learning.
Addressing the delegates, the commissioner for co-operative development, Fred Mwesigye, urged cooperative unions to accept professional advice and to elect committed leaders.
He discouraged the unions from borrowing money, saying most unions found it difficult to repay the debts.