Lango cooperative union struggling to repossess assets

Lira, Uganda |  THE INDEPENDENT | Lango Cooperative Union is struggling to repossess its assets. The union was formed in the 1950s by cotton farmers in the greater Lango sub-region to alleviate poverty by promoting cotton growing.

However, the union collapsed in the 1980s due to fluctuation of cotton prices and delays to refund borrowed loans from microfinance institutions by the Union boards of directors that weakened the union.

Although the government promised to compensate the Union for the losses, it is struggling to reclaim their prime assets it lost to private individuals.

Records at the Ministry of Finance indicate that at the beginning of this financial year, the government paid out 2 Billion Shillings under Lango War Claimants out of total debt of 17 billion shillings it owes the union.

Maxwell Akora, the Lango Cooperative Union Chairperson who doubles as Maruzi County MP says while they need all their assets to enable them to expand their projects, some people occupying the properties are reluctant to return them to the Union.

Akora says they have so far repossessed about 1,165 hectares of the union land, equivalent to 9 square kilometres, located at Angayiki village Chawente Sub County in Kwania District. He said the union has managed to title the land in question which was claimed by microfinance support limited for sale to recover an accumulated debt of 1.460 Billion Shillings owed by the union. 

Some of the union’s properties still in private hands include the three pieces of land and one big plot under the rehabilitation of administration block and stores at plot 16, Station road in Lira City among others.

Akora says while some of these assets were sold off by commercial banks that had attached them as a result of the Union failing to pay back loans, some were taken over by unscrupulous individuals.

According to Akora, the Union is currently in the process of reassembling the maize and soya bean processing plants and factories which requires adequate land. 

Ambrose Derrick Wugweri, the Registrar of the cooperative tasked the Union leadership to coordinate with lawful occupants to pursue the other encroachers through local authorities to reclaim the Union’s assets. 

Agnes Abote, a member of Akia Primary Society is happy with the move to repose the union assets. 

Another farmer Tom Odoc, a resident of Acaba Sub County in Oyam district asked the Union leadership to give out the union land to investors to get money for the union. 

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