Workers at the Royal Van Zanten flower farm are reeling after discovering that nearly Ugx228 million is unaccounted for in their Savings and Credit Cooperative (SACCO).
The cooperative, known as the ‘Royal Van Zanten SACCO’, has had its account frozen for the past two months following the shortfall, sparking anger and confusion among members who rely on their savings for personal financial needs.
The SACCO was set up in 2010 to help workers at the flower farm save money and access loans for personal development.
It currently has 120 active members, each of whom joined by paying an entry fee of Ugx5,000 and a share fee of Ugx20,000.
According to records, SACCO’s total member savings had reached nearly Ugx259 million, with member loans accounting for about Ugx30.5 million.
However, a recent account review revealed a shocking reality: the balance in SACCO’s bank account was just Ugx124,783, indicating that 88% of members’ funds were missing.
Workers Seek Answers
Grace Kalawobi, a representative for the affected SACCO members, says the lack of transparency from both the SACCO committee and farm management has left them with no option but to seek legal action.
“We reported the issue to the Mukono Police Division, accusing the farm’s human resource officer, the finance controller, and the current and former SACCO chairpersons of mismanaging the funds,” Kalawobi told reporters.
Two key figures in the SACCO, current chairperson Tonny Deme and former chairperson Emmanuel Nsubuga, were detained and later released on police bond as part of the investigation.
However, the farm’s finance controller, Pieter Huys, declined to respond to the police summons, stating he had “nothing to record” regarding the matter.
Kalawobi highlighted the harsh working conditions at the flower farm green houses, describing daily exposure to hazardous chemicals and grueling physical work, only to have their savings vanish without explanation.
“We work hard, but now the company and the SACCO committee have taken away what we saved,” she said, urging the government and workers’ unions to intervene.
SACCO Mismanagement
The management of Royal Van Zanten claims the company has no role in SACCO operations, though workers’ contributions are automatically deducted from their payroll.
Nsubuga, the former SACCO chairperson, expressed frustration, stating that workers had requested transparency over funds deducted and remitted but received no support.
“We were summoned and ended up being detained over matters we don’t know,” he said.
Royal Van Zanten’s finance controller, Huys, defended the company, asserting that the SACCO is independently managed by its committee and criticising workers for attempting to implicate the farm.
He further disclosed that the decision to freeze the account came after employees complained of possible fund mismanagement.
According to Huys, the company hired MHKP Associates, an external auditor, to examine the finances, although the audit found no clear source for the shortfall.
Audit Reveals Various Lapses
The audit report, while unable to pinpoint the shortfall’s origins, uncovered multiple lapses in SACCO management.
Key recommendations from MHKP Associates include a complete reconciliation of bank and cash book records since the SACCO’s inception.
The audit further noted that mandatory meetings – monthly committee reviews and annual general meetings – had not been held, and no annual audit had ever been conducted.
The auditors recommended that the company pursue legal action against the SACCO committee because these procedural oversights may have contributed to the SACCO’s financial mismanagement.
SACCO Chairman Responds
Current SACCO chairperson Tonny Deme disagreed with the audit’s conclusions, arguing that they lacked substantive findings.
He believes that without clear answers on the source of the financial discrepancy, the audit report only adds to the confusion and tension among workers.
However, for the affected workers, the situation is a deep betrayal. Their SACCO savings represent years of hard work and sacrifice, and they now face an uncertain future.
Kalawobi and other affected members hope continued police involvement will bring transparency and hold those responsible accountable.
The workers also demand that the SACCO adopt improved governance measures, including regular meetings, audits, and clear record-keeping to restore trust among its members.
As the investigation unfolds, the plight of Royal Van Zanten’s workers underscores the importance of oversight and accountability within employee cooperatives, especially where management and oversight have long been neglected.
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