One of the sticky issues that has caused the ongoing cooperatives saga at the Ministry of Trade, Industry and Cooperatives, is whether the ministry did the right verification or not.
The process of verification of the cooperatives came after many cooperatives came up with requests for compensation for the losses they incurred during the previous wars.
A verification committee had been set up in September 2021 but in November the Commissioner of Cooperatives Robert Barigye reconstituted it under unclear circumstances.
The parliamentary committee on Tourism, Trade and Industry described this as a parallel verification committee which created confusion.
According to an internal memo dated November 30, 2023 seen by Eagle Online, written by Barigye, withdrew members who constituted the earlier committee and formed a new verification committee.
“In Pursuant of the routine staff rotation, capacity building and embracing technical expertise, I have in consultation with the Permanent Secretary reconstituted the War Debts Claims Verification Committee,” Barigye wrote.
The earlier committee had five members and included; Leonard Kavundira, Principal Cooperative Officer, the Senior Cooperatives Officer, Paul Ocalum, Lucy Babirye, a Senior Cooperatives Officer, Rufina Komol, a Cooperative Officer and Scovia Tusubira, a Training Officer.
Parallel committee formed
According to the memo Robert Mpakibi Waiswa, the Assistant Commissioner SACCOs was appointed the Chairman of the new verification committee.
The other members of the committee included; Moses Magumba, a Senior Cooperatives Officer, Ambrose Mugweri, a Cooperative Officer, Winnie Turyamureeba, Senior Cooperative Officer and Eng. Kassim Semanda.
Barigye further said: “The purpose of this memo, therefore, is to inform you that the War Debts Claims Verification Committee has been reconstituted effective December 1, 2021,”
The need to verify these cooperatives came after a report was published showing at least 1,110 cooperative unions demanding government Shs162billion in war reparations.
Some cooperatives had part payment and rest had been stolen by the Ministry officials and lawyers as kickbacks.
In September last year, the Internal Security Organisation (ISO) and the State House Anti-Corruption Unit (SHACU) detained Barigye in connection with the compensation but was later released.
His arrest came after allegations that officials in the ministry had allegedly connived with various law firms in Kampala and chairpersons of the cooperatives embezzled the over Shs20 billion meant to compensate cooperatives for the losses incurred during the war and political insurgencies.
It’s not clear how he was left off the hook. The controversy surrounding the compensation of the cooperatives has seen Members of Parliament and the Permanent Secretary Geraldine Ssali under arrest.
Sources say that even the payment of these cooperatives was also initiated by Barigye and approved by Ssali who is accused of paying the cooperatives.
Efforts to frustrate Cooperative Bank
Sources also say that some commercial banks and big money lenders in Uganda are taking advantage of ongoing saga at the Ministry of Trade Industry and Cooperatives to undermine the efforts by the government to create a cooperative bank which would give clients loans at a low interest rate.
Big money lenders led by a big businessman in town are said to be mobilizing money to frustrate the efforts to have a cooperative bank.
Uganda Cooperative Alliance is currently conducting regional consultation meetings with various cooperators and Sacco leaders, among others, to mobilize them in their plan to revitalize the National Cooperative Bank.
The bank will help to give farmers loans at very low interest rates, between six and seven percent, compared to commercial banks, which charge over 20 percent in loan interest which some commercial banks and exploitative money lenders are against.
