Banyankore Kweterana seeks debt waiver
Jul 13, 2009
Banyankore Kweterana Co-operative Union has appealed to the Government to write off its sh1.7b debt. Tom Karuhanga, the general manager, said this would assist members to revive the union.
By Fred Turyakira
Banyankore Kweterana Co-operative Union has appealed to the Government to write off its sh1.7b debt. Tom Karuhanga, the general manager, said this would assist members to revive the union.
He also appealed to the Government to release the remaining balance on war losses compensation. He was speaking at the 38th general meeting at Kakoba Coffee factory in Mbarara on Friday.
The union members want to revive the cooperative and its network of factories across the western region. The union ceased operations over 10 years ago after the Bank of Uganda sold off its assets when it failed to pay a bank loan.
Karuhanga said the union had borrowed sh1.5b from the defucunt Co-operative Bank at high interest rates to replace the union assets, which were destroyed during the 1979 and 1985 wars.
These include vehicles, coffee stocks, cash and stored consumable goods totalling over sh13b. The central bank sold the assets that the union had mortgaged with the Co-operative Bank when it took over as liquidator.
Karuhanga also said court brokers had vandalised the union’s assets like the Bwongyera Coffee Factory, which was not mortgaged, without Bank of Uganda’s knowledge.
He also asked the Government to intervene and allow the union to repossess the assets that were sold at a give-away price by the Bank of Uganda.
The union is reviving its operations after the Government helped it repossess the Kakoba coffee processing plant.
It has also offered them sh4b compensation for the lost assets during the National Resistance Army war between 1981-1985.
They have established coffee nurseries to enable farmers get coffee seedlings to plant. They have established three coffee collecting centres for easy transportation. Fred Mwesigye, the commissioner for co-operative development in the trade ministry, warned co-operators to work hard and avoid bank loans.
The union also signed a memorandum of standing with the Uganda Commodities Exchange to market for their products.
Alex Rwego said the partnership would help the union members to access the market.
Banyankore Kweterana Co-operative Union has appealed to the Government to write off its sh1.7b debt. Tom Karuhanga, the general manager, said this would assist members to revive the union.
He also appealed to the Government to release the remaining balance on war losses compensation. He was speaking at the 38th general meeting at Kakoba Coffee factory in Mbarara on Friday.
The union members want to revive the cooperative and its network of factories across the western region. The union ceased operations over 10 years ago after the Bank of Uganda sold off its assets when it failed to pay a bank loan.
Karuhanga said the union had borrowed sh1.5b from the defucunt Co-operative Bank at high interest rates to replace the union assets, which were destroyed during the 1979 and 1985 wars.
These include vehicles, coffee stocks, cash and stored consumable goods totalling over sh13b. The central bank sold the assets that the union had mortgaged with the Co-operative Bank when it took over as liquidator.
Karuhanga also said court brokers had vandalised the union’s assets like the Bwongyera Coffee Factory, which was not mortgaged, without Bank of Uganda’s knowledge.
He also asked the Government to intervene and allow the union to repossess the assets that were sold at a give-away price by the Bank of Uganda.
The union is reviving its operations after the Government helped it repossess the Kakoba coffee processing plant.
It has also offered them sh4b compensation for the lost assets during the National Resistance Army war between 1981-1985.
They have established coffee nurseries to enable farmers get coffee seedlings to plant. They have established three coffee collecting centres for easy transportation. Fred Mwesigye, the commissioner for co-operative development in the trade ministry, warned co-operators to work hard and avoid bank loans.
The union also signed a memorandum of standing with the Uganda Commodities Exchange to market for their products.
Alex Rwego said the partnership would help the union members to access the market.