Shs300m lost in cotton fraud
By Joe Wacha
Monitor, June 1, 2005
LIRA - The committee set up to investigate the irregularities that marred the marketing of cotton in the last season has said that Shs300 million was embezzled by the district National Agricultural Advisory Services (Naads) office and a local NGO called Rural Enterprises Development Organisation (Redo).
Naads is a government programme to improve farming while Redo is a Community Based Organisation offering farming related services.
The inquiry report The Monitor saw says Jinda International Textile Corporation (Jitco), the company that bought Lira Spinning Mill, gave Shs300 million through the district Naads office and Redo to help farmers in cotton production. But the report indicates the money was never delivered to the farmers.
The investigation was commissioned by Lira LC5 Chairman, Mr Franco Ojur, in January following an order by President Yoweri Museveni to know why Jitco was being barred from buying cotton in the region.
The Cotton Development Organisation, the body that controls and regulates cotton production in the country, claims that Jitco had not invested in cotton production nor were they licensed. However, the district Naads Coordinator, Dr Bernard Otim Ogong, said in an interview on Friday that the money was given to the farmers.
The Director of Redo, Mr Robin Akeny, could not be reached for a comment. The probe committee was chaired by the deputy RDC, Mr Godfrey Aluma. Sources said the committee said the money should be refunded.
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