A government funded potato processing plant in Kisoro district is being sued by local farmers for breach of contract.
Kisoro Potato Processing Industries (KPPIL) is owned by tycoon Tom Mugenga, and is supported by the National Agricultural Advisory Services (NAADS) and Kisoro District Local Government.
Some 26 farmers in the district through their lawyers of Twikiriize and Company Advocates are dragging the firm to court for nonpayment of Shs 180million for their services.
The potato farmers were hired by the factory, located in Kamonyi village to plant on their land up to 770 bags of potatoes on its behalf.
This factory was officially commissioned by His Excellency President Yoweri Museveni a few years back, to enhance potato production in the south western district. It was to produce chips and crisps to be sold around the country, and in Europe and Asia.
Last year, Government through NAADS provided a financial incentive totaling to Shs 700million for KPPIL to purchase a special seed variety from the Netherlands known as the Markies Variety.
The money, which was received by KPPIL top management was used to purchase 85 metric tons of high yield Markies potato variety from MS Agrico, an agro-based firm in the Netherlands.
However, to the dismay of district authorities and other stakeholders, the potato seeds sat in the stores for weeks as KPPIL management failed to identify virgin land in which to plant the 770bags of the Irish potato seed.
At the time, the factory manager Bryum Odili said they needed at least 96 acres of land to plant the seed before it went to waste.
Farmers in the area refused to offer their land for this project.
The Kisoro District Potato Union Chairman Fidel Kamari noted that he was not prepared to allow his farmers, who are over 5000 to enter into an arrangement with KPPIL proprietor Tom Mugenga because he didn’t want to commit himself in writing; and also that past dealings had affected their confidence in him.
In an attempt to save face, KPPIL entered into an agreement with a small group of farmers whom they promised to pay in two installments Shs. 200,000 per 100 kg bags of Markies potato seed planted.
The farmers took on the project but claim they have never been paid a dime to this date.
According to the Kisoro District Chief Administrative Officer (CAO) Wilson Tibugyenda, Government is aware of the farmer’s plight and is working on processing their payments.
“As Kisoro district Local Government, we advised the aggrieved farmers to have a written guarantee with KPPIL in which the office of the Chief Administrative officer would play a mediatory role to ensure payments are made,” Tibugyenda explained.
He further noted that the issue of the potato farmers has gone up to the Prime Minister’s office and a directive to Ministry of Finance and NAADS secretariat was issued to have the farmers paid.
Attempts to get a comment from Dr. Bahana on a phone were futile as he declined to speak to the press.