The final forensic audit into the Bugisu Cooperative Union has implicated Mr Nandala Mafabi’s board and its predecessor in financial mismanagement.
The audit report recommends that the old board members account for the missing Shs6 billion.
The report says further the old board between August 2003 and May 2004 paid out Shs3.8 billion but there is no document to prove the expenditure. It thus recommends that the old board members account for the money or pay it back to the union.
However, Mr Mafabi maintains that government interference is responsible for some of these shortcomings.
“My term was interrupted after government forcefully took over the Union in 2010, we would have organised the union financially, even what the audit report talks about is a small mis-accountability that would have been managed if we had been given ample time,” Mr Mafabi said.
The report further says Mr Mafabi’s board lacked clear operational guidelines, created Elders’ Forum outside the Union’s structure.
It added that the general manager purchased a defective coffee packing machine at Shs25 million without authorisation.
The report also says the Mafabi board should recover rent arrears of Shs18 million from their lawyer and make the treasurer, Mr James Nabende, account for Shs11 million.
“The board should draft a procurement policy and plan for approval at the general meeting,” should have approved budget estimates, should delink Elders Forum from the Union and the general manager, should refund money used to purchase the packaging machine,” the report by Mr Joseph Kitandwe, the acting commissioner of cooperatives states.
Mr Mafabi was reelected BCU chairperson unopposed recently.