District probes dairy cooperatives over Frw9m

EASTERN PROVINCE NYAGATARE — The district has hired external auditors to audit the accounts of three dairy firms reportedly over missing funds.

Tuesday, January 29, 2008

EASTERN PROVINCE

NYAGATARE — The district has hired external auditors to audit the accounts of three dairy firms reportedly over missing funds.

Sources say the three cooperative societies operating from Nyagatare, Rwimpasha and Umuvumba Sectors have failed to pay milk suppliers, who are members of the cooperatives, for more than a month after Frw9million went missing.

According to Bonny Ruterana, the district head of cooperatives the probe is intended to establish whether the cooperatives made losses or some leaders misallocated the members’ money.

Augustine Katabarwa, the chairman of Umutara Dairy Marketing Cooperative [UDAMACO], under which the three cooperatives operate confirmed the financial scam and said "something must be done” if the ongoing investigation reveals irregularities in the management of members’ money.

"Many cooperative members have been approaching me asking me to take action, but we can’t report the case to police until we have tangible evidence to implicate any of them,” Katabarwa said.

Members of the affected cooperatives who talked to The New Times on condition of anonymity allege that their leaders are corrupt and may have embezzled the money.

"We were receiving our payments after every week but now the situation has changed. It is now more than one month without payment and there is no satisfactory explanation given to us as members,” one said, adding it’s not clear; we want superior authorities to intervene.

Katabarwa distanced UDAMACO from the financial scam saying, each primary cooperative society has autonomous powers and the umbrella [UDAMACO] only helps them in capacity building and advisory work whenever need arises.

Over nine diary cooperative societies operate under UDAMACO across the former Umutara province currently part of eastern province. 

Ends