KIGALI - The Government, under the Finance and Agriculture Ministries, has decided to repossess Rwamagana Rice Factory from COCURIRWA, a cooperative of rice farmers, The New Times has established.

COCURIRWA assumed full control over the plant in 2001 but later, the government decided to invite an Australian firm called ICM which was given 60 percent shares.

The aim of inviting the Australians was to work with the cooperative to enhance rice production in the area. However, according to the agriculture ministry, this was not realised, prompting the government to repossess the plant that is based in the Eastern Province.

The cooperative, in due course, run out of supply from the farmers and was unable to mobilise cash to purchase rice elsewhere.

"The wrangles were introduced by the cooperative which failed to manage the factory and avail the necessary raw materials to run the factory,” said agriculture minister, Christophe Bazivamo.

He added that the cooperative did not comply with the agreement of enhancing rice growing in the area and increasing the production, but only focused on sharing the interests amongst the members.

According to a well-placed source in Rwamagana District, the cooperative has accused ICM of influencing the government to repossess the factory so that they end up taking it over.

"We ourselves invited ICM in this business because they are internationally recognised in this business that is why we have decided to hand the factory to them as one investor which will make it easy to buy rice anywhere and keep the factory running,” Bazivamo revealed.

When contacted on phone, John Rwangombwa the Permanent Secretary in the Ministry of Finance confirmed the decision of repossessing the factory, adding that it is normal when an investor fails to comply with the contract the government is left with no other option.

Last month, the two ministries informed a cabinet meeting on the development following recommendations by the Government Retreat that was held in Rubavu in February.

ICM recently signed an agreement with the government to boost rice production in the country and during the signing; the firm pledged that in a few years to come, Rwanda would be exporting rice to other countries instead of importing it.

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