Fredrick Mwesigye, the commissioner for cooperatives has suspended the operations of Bunyoro Grower's Cooperative Union over financial mismanagement and corruption.
The decision to suspend operations of Bunyoro Grower's Cooperative Union stems from several petitions filed by farmers against the top leadership of the union.
In his letter dated May 06, Mwesigye has also halted any expenditure by the union and called for a special meeting on May 28th where managers of the union have been directed to give full accountability.
Mwesigye says, there are complaints of dissatisfaction in the manner in which the Union assets are managed.
Allegations are rife amongst members that members of the board who have served for over 18 years have sold off most of the union's properties and misappropriated the money.
Some of the properties said to have been sold include a cotton ginnery, petrol station, a hides and skins tannery, carpentry workshop, five lorries, two pick-up trucks, a cotton-cake and oil making machine, a commercial building, coffee processing factory, Uganda Seeds and about 65 square miles of land.
Pantaleo Kasangaki, the chairman of the union who initially described the complainants as "idlers", now says the meeting is welcome.
He says it is time for him to clean his image.
Alfred Kamese, the lead complainant says Kasangaki has sold off everything and has turned the once flourishing project into a family affair, employing mainly relatives.
Kasangaki is accused of selling off the union's ranch at in Masindi at shillings 2.7 billion and gave, each of the 8 board members shillings 10 million.
He is also accused of flouting the union's bye-laws serving as chairman for more than two terms.
George Magambo, a former member of Union's board says those responsible must be taken to the anti-corruption court, because they misused public resources.
In 2006, the Inspector General of Government released a report in which members of the union board were cleared of any wrong doing.
The IGG said most of the transactions concerning the union property were done within the law.
But the union's Secretary Manager Michael Byaruhanga, Accountant Barugahara Banabus and workshop foreman Vincent Mpabaisi were implicated in some financial irregularities.
However, none of the officials was reprimanded by Kasangaki.
On December 30th 2009, Bunyoro Growers Cooperative Union held its Annual General meeting in Buliisa. Kasangaki predicted a very bright future ahead.
All those critical of the on-goings were not invited.
