West Nile tobacco farmers to be paid this week – minister Bahati

__________________

All verified tobacco farmers in West Nile will be paid this week, according to State Minister for Trade, David Bahati.

Bahati explained to Parliament on Tuesday, April 15, that the delay in payments had been caused by technical issues related to the payment system, which required funds to be disbursed directly into individual farmers’ accounts.

“We delayed the process because we could not pay through the Integrated Financial Management System (IFMIS). We needed to open a special account in Bank of Uganda where money would be transferred directly to the individual farmers’ accounts. The process is now over and the farmers will be paid this week,” Bahati said.

He was responding to concerns raised by Koboko North MP Noah Musa, who questioned why the farmers had not been paid despite earlier promises that payments would be made in March.

“The tobacco farmers were promised to be paid in March. The Ministry of Finance released the money but to date, the farmers are still waiting. Secondly, many of them lost the payment supply slips, but we agreed that they should present police letters and other documents to confirm that they supplied the tobacco,” Musa said.

Bahati asked for more time to consult and report back.

Last week, Maracha County MP Denis Oguzu Lee also raised the same issue in the House.

Oguzu informed the House, chaired by Deputy Speaker Thomas Tayebwa, that although Parliament had appropriated the funds and the Ministry of Finance released the money in the second quarter of the financial year, the Ministry of Trade had not paid the farmers.

“I now have information that the ministry has halted the payment process. Can the Ministry of Trade explain to the farmers why they have refused to pay them, or when are you going to pay so that they don’t think you are going to disenfranchise them?” Oguzu asked.

Bahati reassured the MPs that the farmers would be paid “soon.” He confirmed that the Ministry had received the resources to clear the compensation for tobacco growers in West Nile and had completed the verification process.

“We have completed the verification process and all the requirements we needed to pay the money, and the money will be paid soon. We do apologise that it has delayed but, very soon, it will be paid,” Bahati said.

Tayebwa urged him to expedite the process and ensure that the farmers are paid without further delays.

Over 1,700 tobacco farmers in the 2018/2019 financial year sold their tobacco to Continental Tobacco Company, totalling sh12 billion. However, the company only managed to pay about sh2.4 billion, leaving a balance of sh9.7 billion.

In 2023/24, State Minister for Finance Henry Musasizi assured the farmers that the outstanding payment would be cleared by 2025.