Bugisu Co-operative Union board members have been ordered to refund more than 25 million shillings, which was spent illegally on terminal benefits.
The order by the Trade and Industry ministry, stems from recommendations by a committee which was set up last year, to probe into the alleged mismanagement of Bugisu co-operative union.
The three-man team headed by Francis Mulwana, the commissioner of co-operatives was given the mandate to establish how the management of the union spent 1.6 million dollars that was borrowed from Jobbing Field Property Financial Co. Ltd.
The team was also mandated to investigate the circumstances under which coffee valued at 935 million shillings went missing from Bugisu Co-operative Union stores in Mbale. The team also sought to establish the loss of 573 million shillings incurred by the union's management.
The team found out that Bugisu co-operative society board members paid themselves up to 25 million shillings in retirement benefits, despite the fact that they are still holding offices.
The probe team recommended that members of Bugisu Cooperative board should immediately refund 25.1 million shillings that they illegally paid themselves as gratuity.
The Team also recommends that Bugisu, co-operative union should sell some of its prime assets to settle the debt that it owes to Jobbing Field Property Financial Co. Ltd. The board has also been asked to provide records for lost coffee stocks.
bugisu co-operative union