Cooperatives minister summons nyakatonzi cooperative top managers over financial issues

state minister for cooperatives Fredrick Ngobi addresing nyakatonzi growers cooperative union members during their 59th AGM at their offices in kasese. Photo By Ronald Kule

state minister for cooperatives Fredrick Ngobi addressing nyakatonzi growers cooperative union members during their 59th AGM at their offices in kasese. Photo By Ronald Kule

By Ronald Kule

KASESE. The State Minister for Cooperative Frederick Ngobi has summoned top managers at Nyakatonzi Growers’ Cooperative Union one of the leading cooperative unions in Uganda based in Kasese district to appear in his office early next month to give an explanation to why the Union has continuously suffered losses yet it has all necessary resources to make profits.

 

Ngobi, who was presiding over the union 59th annual general meeting wednesday this week at the union offices in Kasese town, blamed the downfall of Nyakatonzi growers’ cooperative union to the mismanagement of the union assets by its top leadership.

 

He observed that Nyakatonzi which is one of the top cooperatives in Uganda dealing mainly in cotton, can’t keep operating in loses when its primary cooperatives are actively remitting their produces to the union with better stores and tractors.

 

According to a management report for the last financial year 2015/16, the union suffered a net loss of 314million shillings resulting from the reduction of the union’s total financing by 131millions, members’ equity reduction of 108million shillings.

 

The report which was presented by the union secretary manager Adam Bwambale also indicated a 30million shillings loss from the union transport unit service in addition to a 57milion shillings loss registered by the union warehouse.

 

However in terms of sales, cotton activities that were handled last financial year generated 5.7billion shillings revenue compared to 3.9billion shillings of the financial 2014/15.

 

Nyakatonzi growers’ cooperative union currently manages 27 primary cooperatives societies in the districts of Kasese, Kabarole, Kamwenge and Rubirizi. End

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