Donors threaten to cut off aid to Ugandan farmers' group over graft

The new executive committee of the Uganda National Farmers' Federation has an immediate task to recover Shs 191.57 million (US$116,000) in debts. According to the Auditor General's report of 2005 that was presented to the Federation's Annual General Meeting last week, the money was advanced to individual workers and companies created by staff members.
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For example, UNFFE is owed Shs 98 million ($60,000) by Uganda Farmers’ AgriBusiness Ltd, company formed by the Uganda National Farmers Association (UNFA). UNFA, the predecessor of the UNFFE, approved the loan in 2001 before it changed name to UNFFE. This particular loan attracts an interest rate of 4% with a grace period of one year but since then no money has been paid back.

Other debtors are two senior staff members who owe UNFFE Shs 81.129m ($50,000) and Shs 12.441m ($7,500) respectively. UNFFE is funded by Danida and Agriterra, respectively the Danish development agency and a Dutch organization that supports rural farmers. In March this year, Agriterra suspended funding the UNFFE after its own audit of UNFFE operations revealed that farmers were not benefiting from the funds. Sources said Danida had also threatened to suspend funding.

The two main donors have been funding overhead costs such as Internet, telephone, power and water facilities. They have also been funding the enhancement of governance of the organisation and salary of some staff.

In 2005, the total income of UNFFE was about Shs 1.3 billion ($790,000) with grants from Danida amounting to Shs 102 million ($62,000) Shs 364 million ($220,000) from the Global Fund and 130 million ($80,000) from membership fees. Other funds came from the annual agricultural show that brought in Shs 93 million ($56,000) and a Shs 135 million ($82,000) grant from the Uganda Aids Control Programme.

The executive has been given six months to recover the money. It is headed by Frank Tumwebaze, the Member of Parliament for Kibaale County.

According to the outgoing Secretary General, Richard Bakoja, ever since Agriterra stopped funding the farmers' organisation, some activities had been disrupted. He said there had been a temporary disconnection of Internet because of failure to meet the bills, and that some workers had not been paid their salaries.

Uganda Observer