Breaking

Farmers, Businessmen Losing Property to Financial Institutions in Teso

Top story
Martine Erimu, the chairperson of the Teso Grain, Rice Millers, Processing and Marketers Association- TEGRIMMA, says some financial institutions limit farmers when borrowing but are fast in collecting the money.
One of the Houses taken over by the bank in Soroti town.

Audio 4

Farmers and businessmen in Teso have decried the rate at which financial institutions are taking away their property because of delays to service their loans. Several trading centre across Teso sub region have property especially houses, now attached by financial institution. 

Martine Erimu, the chairperson of the Teso Grain, Rice Millers, Processing and Marketers Association- TEGRIMMA, says some financial institutions limit farmers when borrowing but are fast in collecting the money. 

Erimu is concerned that a number of farmers, who venture in commercial agriculture with loans have been frustrated by the banks after losing some of their investments.  

According to Erimu, whenever a farmer requests for a loan even with substantive collateral, financial institutions prioritise on risks and end up giving a farmer something that may not help attain the set objectives. 

// cue in “These banks...

Cue out...prime property”//

The loans have not only frustrated farmers and businessmen in Teso but several people as well. Last year, Usuk Secondary School almost lost the school bus after failing to pay off UGX. 127 million. 

The school was bailed out when Usuk MP, Peter Ogwang intervened with cash. 

Currently, the Director Jameler Primary School, John Michael Ebiu Erwau is battling a case with Centenary Rural Development Bank in Soroti after the latter auctioned the school over UGX 350 million loan acquired in 2015. 

According to Erwau, his school, worth UGX 2 billion was auctioned for only UGX. 500 million without following the loan agreement. He claims that there are fraudsters conniving with bankers to defraud the community. 

// cue in “They made us...

Cue out...but why this?’’

Alternative

//Cue in “On the 12th...

Cue out...here in court’’//

But Joy Christine Apolot, the Soroti District Commercial Officer, says the community should be keen when asking for loans. She notes that while a number of people have fallen victims of bank auctions, others go for loans without clear objectives. 

// cue in “Banks are business...

Cue out...getting into”//