Bugisu Cooperative Union (BCU) management has ordered for the arrest of their internal auditor, Mr Anthony Mwenyi, for allegedly misappropriating Shs1.2 billion.
Mr Mwenyi and other union staff are accused of creating ghost coffee farmers from which he allegedly received payment worth Shs3.6b instead of Shs2.4b.
Mwenyi reportedly connived with some other officials in the company to forward lists of ghost farmers which caused financial loss to the cooperative.
Mr John Musila, the vice-chairperson of BCU, said Mwenyi was last month asked by board members to present a list of primary society farmers to process their arrears for December last year to April this year but the arrears seemed exorbitant than what board members expected.
He says this prompted Nathan Nandala Mafabi, the chairperson of BCU who is also an auditor to re-compute and audit. According to Mafabi’s audit report, the actual amount that was supposed to have been paid was 2.4 billion shillings.
“It was discovered that the said officers had inflated the list of creditors with ghost farmers. This implies that the profit margin of Shs1.2bn was not declared,” Mr Musila said.
“The management has been all along following up these dubious dealings until a time when they senior management instituted an internal audit which showed a lot of mess in the procurement of coffee beans,” he said.
Elgon region police Spokesperson Rogers Taitika confirmed the auditor internal and other union staff are accused of fraudulently stealing coffee beans belonging to the union.
However, the manager of BCU, Mr Vincent Buyi, dismissed claims that the auditor misappropriated funds. He explained that internal auditors do not pay out cash neither do they compile pay lists as alleged.
“The work of the internal auditor is not to compile a list of farmers and me as manager, am not aware of any ghost farmers or kilograms of coffee from the farmers,” Mr Buyi said.
He said that as the manager he is not aware of ghost farmers or kilograms of coffee lost at primary societies.