Billions Stolen From Uganda’s Only Surviving Cooperative Union

September 3, 2013 8:17 pm0 comments by:

A forensic audit conducted into the only surviving Cooperative Union, in Uganda, has revealed that its management, caused loss of close, to 30 billion shillings, through fraudulent transactions.

A forensic audit report which was carried out by a team of external auditors, on the state of affairs of Bugisu Cooperative Union, reveals incidences of outright corruption by members of the board.

Bugisu Cooperative Union-BCU was founded in 1954, by Arabica coffee farmers from the Mt. Elgon region in eastern Uganda.

It’s the only surviving union in Uganda, after the liberalization policy, which, the government of Uganda adopted, in the early 90’s that forced other unions, to close down.

The union has however of late been dogged by government interference and accusations of corruption by members of the board. In 2009 the Government suspended the board led by current leader of opposition in parliament, Nathan Nandala Mafabi and ordered for a forensic audit, into the state of the affairs of the union.

The results of the audit report, have however never been made public.

But a copy of the report, accessed by the Continental Observer, implicates members of the former board in fraudulent dealings that resulted in loss of billions of shillings.

Some of the losses captured in the report include;

Between 2002 and 2009, the union lost more than 29 billion shillings through fraudulent transactions carried out by members of the board.

The forensic audit report, faults the management for selling off Mt. Elgon Hotel, at 749 million shillings without carrying out prior evaluation, and advertisement as required before disposal of property. The same hotel had been bought by the union few years back at 750 million shillings.

The management borrowed, more than 361,000 for crop finance and additional, US$ to finance export of coffee but the auditors, found out that no coffee was purchased.

The board also spent US$ 155,000 on paying themselves retirement package, without the resolution of the general assembly.

The auditors also question the exchange loss of UGX 243M and coffee washout of 573m shillings.

The forensic report notes, that the money could have been stolen, because there’s no way they could lose in exchange when no coffee was exported in that period.

The forensic audit also implicates, the board in fraudulently, collecting 72 million shillings, in rent then declaring it as bad debt.

Tags:

Leave a Reply


(Spamcheck Enabled)

Facebook

Get the Facebook Likebox Slider Pro for WordPress