A conflict has emerged within the coffee sector following the Speaker of Parliament’s directive for an independent investigation into the purported misappropriation of government funds totaling Shs9.6 billion, earmarked for activities such as coffee training.
The Auditor General’s 2021 report revealed that M/S Inspire Africa (U) Limited received Shs1.9 billion for establishing coffee shops and related infrastructure in Arua, Mbale, Lira, Gulu, and Tororo under the item “Consumption of Coffee.” However, the AG noted during a physical inspection that, except in Gulu, the coffee shops were either nonexistent or nonoperational in the designated areas.
The current dispute centers on two prominent commercial coffee farmers, Mr. Robert Kabushenga of Rugyeyo Farm and Mr. Nelson Tugume, the chairman of Inspire Africa Coffee Limited.
Mr. Kabushenga, through his X (formerly Twitter) handle, accused Mr. Tugume last Friday of misappropriating public funds amounting to $20 million (approximately Shs75.5 billion) for coffee-related activities.
On the same day, Mr. Tugume, represented by AHAMARK Advocates, issued a letter to Mr. Kabushenga demanding a retraction of his statements. The legal document stated, “Your statements taken alone or together, convey the false impression that our client [Nelson Tugume] misallocated $20 million, contrary to the facts.”
Despite the notice to sue, Mr. Kabushenga, when contacted on January 14, maintained that he would neither retract his statements nor apologize to Mr. Tugume.
One of Mr. Tugume’s lawyers, Mr. Francis Harimwomugasho, commented, “As of now, the intention to sue still stands, but I think Mr. Kabushenga is having a lot of social media time; we shall not engage him through what he can do best as of now (use of Social media).”
The origin of the controversy dates back to the period between 2017 and 2018 when the Office of the Prime Minister entered into a memorandum of understanding with Inspire Africa (U) Limited. The agreement aimed to provide training for farmers in coffee production and the establishment of coffee shops, among other activities.
