KPCU be sold to resident cooperators
12 April 2012, 07:40
Kenya Planters Cooperative Union (KPCU) assets need to be valued and sold to the resident cooperators so that the money can be pooled to pay the debtors suggesting the retention of its headquarters which should engage into income generating activities to pay shareholders dividends annually.
In an interview with media over the weekend, the Meru Coffee Union chairperson David Gikunda the Ministry of Cooperative Development and Marketing had written to the Meru Municipal Council to waive part of the penalties owed by the KPCU totaling to shs. 1.3million.
A letter sent to the receiver managers to the Local Authority sought to waive shs. 475,648/= and the Meru Municipal Council said in the full council meeting last Thursday they have tabled the matter for discussion in a special finance meeting alongside the valuation.
Gikunda said they approached the Minister of Cooperative Development and Marketing considering the waiver of KPCU debts such that once the union’s receivership is lifted they will be able to pay the farmers’ due debts.
He observed there were plans of how to pay the debts pointing out that several people never went to court to demand their money when KPCU was put under receivership due to a debt of shs. 641million.
He claimed they have written to petition the ministry of cooperatives to other organizations that are owed money by KPCU to consider waiving of the debts and interest accrued thereon.
Gikunda claimed it would be elusive for the KPCU to regain control of the coffee milling sector because the government has already contracted 18 other millers to do the work earlier done by the union.
Last year the government settled a shs. 240 million debts owed to the Cooperative Bank and plans are underway to waive some more owed to loaning organizations.
He said this will be at the advantage of the farmers since they will have the freedom to request for more loans.
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