MPs Demand Urgent Action on Delayed Compensation for Cooperatives Affected by War

Bagonza, who appeared before the committee on Wednesday, April 2, 2025, highlighted the ongoing issues surrounding the compensation process.

Members of Parliament have raised serious concerns over the lack of sufficient budgetary provision and the continued delay in compensating cooperative societies and unions for the losses they incurred during political instabilities in Uganda during the 1970s and 1980s. During a meeting of the Committee on Tourism, Trade, and Industry, the Permanent Secretary of the Ministry of Trade, Lynette Bagonza, presented the Ministry’s policy statement for the financial year 2025/2026, revealing that there is a significant funding gap of over Shs137 billion for the long-awaited compensation initiative.

Bagonza, who appeared before the committee on Wednesday, April 2, 2025, highlighted the ongoing issues surrounding the compensation process. She acknowledged that while verification of the affected cooperatives had been carried out, no payments had been made to date. This delay in compensating the cooperatives continues to frustrate those who were most affected by the political unrest.

“Verification of cooperatives requiring war claims compensation was carried out, but no payments have been effected yet,” Bagonza stated, adding that the government is still struggling to secure the necessary funds to cover the compensation obligations.

Hon. Richard Gafabusa, the Member of Parliament for Bwamba County (NRM), pointed to a previous report from the committee in 2023 that raised alarms about how some cooperatives were paid. He noted that certain cooperatives had received compensation amounts well beyond the funds allocated by Parliament, leading to concerns of mismanagement and discrepancies in the payment process.

The committee’s findings, which were adopted by Parliament, revealed that between the financial years 2019/2020 and 2022/2023, over Shs48 billion was paid out in excess compensation, beyond the amounts originally set aside for verified cooperatives in the Ministry’s work plan. Gafabusa emphasized that the committee’s report was intended to improve the process, not to halt compensation altogether. He reiterated that the Ministry should address the issue of overpayments and move forward with compensating those who were rightfully entitled.

“We’ve had ongoing issues with the Ministry over this matter. There were definitely problems with the compensation process, but the committee never recommended halting payments. Instead, it pointed out where the problems were and offered recommendations on how to improve the system,” Gafabusa explained. “We cannot leave the other cooperatives, who also lost property, without compensation. It is important that the Ministry finds a way to make the necessary funds available for these people.”

Hon. Godfrey Odero, MP for Samia Bugwe South (NRM), also raised concerns about the Ministry’s handling of the verification process. He referred to an Auditor General’s report, which pointed out that some cooperatives had not been properly verified, leading to further delays in compensation. Odero pressed the Ministry to address this issue and urged the government to prioritize funding for the compensation process, as many claimants are still waiting for their compensation years after their losses.

“We need clear answers on this matter. Our people are waiting, and it’s imperative that the Ministry finds the resources needed to fulfill these obligations,” Odero emphasized. “We acknowledge that there were challenges in the past with the budget allocation, but the claimants have been patient for too long.”

Hon. Isaiah Isabirye, MP for Jinja North Division (FDC), voiced his frustration at the prolonged delay in compensating those who had lost property due to the political instability. He questioned why the government has taken over 20 years to settle claims from affected cooperatives and unions, leaving people who suffered losses still struggling for compensation.

“Why has it taken the government over two decades to compensate these people? Their properties were destroyed, and yet, after all this time, they are still waiting for justice,” Isabirye said with evident discontent.

In addition to the issues surrounding compensation, MPs also raised concerns about the absence of trade attachés in Uganda’s diaspora. Hon. Rita Atukwasa, the Independent MP for Mbarara City, pointed out that the allocated budget of Shs600 million for the Uganda Free Zones and Export Promotion Authority, aimed at connecting Uganda’s export community with strategic partners in international markets, has been insufficient in addressing the need for a stronger presence abroad.

“The issue of trade attachés remains an unfunded priority, which hinders our ability to establish a permanent presence in key markets. Without this, we are only coordinating as guests instead of making meaningful connections to grow our export trade,” Atukwasa remarked.

Isabirye echoed her sentiments, expressing concern that the lack of funding for trade attachés has been a major barrier to promoting Uganda’s trade interests on the global stage. He stressed the importance of having a permanent diplomatic and trade presence in international markets to support the country’s export sector.

“Trade attachés are crucial to promoting our trade sector, but without a budget, they remain an unrealized potential. We have been vocal about this issue, but nothing seems to be changing,” Isabirye added.

In response to these concerns, Hon. Fredrick Ngobi Gume, the Minister of State for Trade, Industry, and Cooperatives (Cooperatives), appealed to the Committee to advocate for additional funding to address the gap in compensation and to fulfill the government’s commitment to those affected by the political instability. He assured MPs that the Ministry is fully aware of the challenges but needs parliamentary support to secure the necessary resources.

“We need your support in ensuring that the compensation process is fully funded so that we can address the needs of all those who are owed compensation,” Gume said, urging the committee to take action on behalf of the affected cooperatives.

As the debate continues, it is clear that while the issue of compensation for the cooperatives remains unresolved, MPs and government officials alike are eager to find solutions and ensure that those who suffered during Uganda’s periods of political unrest are finally compensated for their losses.