NDFCU board suspended for allegedly swindling Shs28bln

Ntungamo: The Commissioner Cooperatives development Mr Robert Bariyo Barigye has ordered suspension of the board of the Ntungamo Dairy Farmers’ Cooperative Union (NDFCU) and reviewing of contracts for the employees of the union after the farmers reported a loss of over 28.6 billion shillings from 2021 to 2023.

The loss discovered during an internal audit by the supervisory committee of the union chaired last year showed that 28 billion shillings were unaccounted for, 460 million shillings were missing from milk sales, and 100 million shillings were duly stolen on transit to the bank.

During the special general meeting held on Thursday, Mr. Barigye asked the board chaired by one of the union founders, Mr. Joseph Kato Lubega, to step aside with members appointing a new board to be chaired by Mr. Arinaitwe Emmanuel, but also to include Mr. Maria Mirembe, who was the chairperson of the supervisory committee, and businessman Mr. Partrick Nyehangane.

Mr. Bariyo noted that the board had to be suspended to pave the way for investigations, as a forensic audit is done to identify how the money was spent.

Members accused the board of hiding information, especially on losses incurred, and trying to stop the forensic audit that would have discovered a lot.

However, Mr. Lubega said the board was being victimized over disagreements with the supervisory committee that failed to look at many factors during their internal audit mechanisms that would have exonerated them from lack of proper accountability.

The Farmers Union was started in 2003 by several dairy farmers who thought to associate and command prices.

In July this year, at least five workers and some board members were arrested by the state house anti-corruption unit over corruption and negligence that led to the loss of the money.

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