Africa-Press – Uganda. An arbitration landmark ruling has thrown out three leaders of the Abarihamwe Livestock Cooperative Society Limited, bringing to an end a legal dispute which had stalled since 2020.
Mr Joseph Mastiko, the arbitrator, in his August 9 ruling, kicked out Mr Tom Mwesigye, Mr Barnabas Taremwa and Mr James Byabashaija (second, third, and fourth respondents) from the society.
His ruling followed an arbitration claim Number One of 2022, which was filed by 11 individuals led by Tadeo Kishaija Katutsi, the first claimant, who is also one of the original members of the cooperative society.
Mr Katutsi was also joined by 10 legal representatives of other original members, including George William Katatumba, Robert Rwanjagarara, Xavior Magezi, Richard Asiimwe, Mary Kyamwiru, Donatira Kisheyabwine, Tereza Namuli Tibayungwa, Isaac Tukahirwa, Denis, Muheebwa, and Fideri Mere Mwebaze, who ran to the court accusing the respondents of hijacking the cooperative society yet they are not members.
Mr Mastiko, in the ruling seen by this newspaper, declared that Mr Mwesigye, Mr Taremwa and Mr Byabashija are neither members of the society nor legal representatives of any of the past members. All this while confirming Mr Katutsi as a founding member of the society, a position he has held since 1988.
“A [further] declaration hereby issues, that the second to the 11th claimants as persons in possession of letters of administration, are the legitimate legal representatives of the deceased members of the 1st Respondent (society),” reads part of the ruling.
Genesis
In 2019, the 11 claimants sought compensation from the government over its ranch no 16B, which the former had taken over. Members of the cooperative society sued the Attorney General in the High Court on February 28, 2019. In the Civil Suit Number 246 of 2018, they asked the government to compensate them with Shs8 billion. When the court awarded them the compensation, the current battle was birthed.
According to the ruling, Mr Mwesigye, who was the chairperson, and his executive committee, received part of the money, which they didn’t remit. Consequently, Justice Boniface Wamala ordered the government to deposit the remaining amount on an escrow account pending completion of the arbitration process.
Arbitration process
On September 1, 2020, the 11 claimants initiated arbitration proceedings by writing to the respondents, proposing arbitrators to be appointed. The notice gave the respondents 30 days within which to choose one person among three suggested names to be appointed an arbitrator. The latter, however, offered no response until the time elapsed.
The Mr Katutsi-led group made a follow-up with another letter on September 14, 2020, reiterating the basis of their claim under Section 38 of the Cooperative Societies Act Cap 112. They also informed the respondents that arbitration proceedings had been initiated by the September 1, 2020 notice of arbitration, which the latter still snubbed.
Mr Mastiko asserts that the respondents’ failure to respond to the proposal for appointment of arbitrators prompted the claimants to refer the matter to the general secretary of the Uganda Cooperative Alliance (UCA). Their quest for the appointment of an arbitrator was in accordance with Section 73(5) of the Cooperative Societies Act Cap 112.
Using his powers under the same section, Mr Ivan Asiimwe, the UCA secretary general, on July 19, 2022 appointed Mr Matsiko of Kampala Associated Advocates as a single arbitrator of the dispute.
“On the same day, I accepted the above appointment as an arbitrator and declared that I was not conflicted in the matter. My acceptance was by signing on the form of acceptance that had been attached to the above said appointment letter. On the same day, a notice of my appointment was sent to both the claimants and the respondents,” Mr Matsiko said.
Snubs continue
The conflicting two parties were invited for the first arbitration meeting that had been scheduled for August 30, 2022.
“On August 29, 2022, I received a request of adjournment from the respondents, who stated that they would be unable to attend on that day. On the same day, I accepted the prayer for adjournment to another date either September 20, 2022 or September 21, 2022 at 3pm. The parties agreed to meet on September 20, 2022 at 3pm and I accepted this by letter dated September 15, 2022 to both parties,” Mr Matsiko said.
The meeting was then shifted to September 20, which the respondents still snubbed. Their last minute communication prompted the arbitrator to adjourn the meeting to October 4, 2022.
“The preliminary hearing took place and was attended by both parties whereby the first Procedural Order was issued detailing the agreed timelines for filing of pleadings and witness statements, service of pleadings, arbitration rules, place of arbitration, pre-hearing conference, hearing date, filing of submissions and issuance of the final award, among others,” he said.
After closure of pleadings, Mr Matsiko said he issued the second procedural order regarding a pre-hearing conference and directed the parties to file a Joint Scheduling Memorandum for February 16.
An arbitration hearing, where the parties cross-examined the witnesses who had made and signed witness statements was held on March 9, which prompted the arbitrator to issue the 34 Procedural Order requiring the parties to file written submissions.
The respondents, he said, filed their reply on May 30, and the claimants filed their rejoinder on June 6.
Ruling
The respondent’s failure to file their replies in time prompted Mr Joseph Mastiko, the arbitrator, to issue his ruling. He declared that the legal representatives of the 10 deceased members of the society are entitled to the shares of the respective deceased members and by virtue of those shares shall be recognised as members of the society.
“For the members who have passed on, their shares shall be registered in the names of the claimants in possession of letters of administration. I order the claimants to hold a meeting within one month of this award, to duly recognise the persons to whom shares of the deceased members have been transferred and to elect a new committee in accordance with the law,” he said.
He also issued a declaration that the amended by-laws registered on May 13, 2005 are illegal, null and void.
“I order that the by-laws filed and registered on 13.05.2008 and all the returns filed by the 2nd 3rd and 4th respondents be expunged from the register of the 1* Respondent Society at the Registrars’ office. The claimants are awarded costs of the arbitration,” the ruling reads.
The claimants brought these arbitration proceedings claiming to be members/legal representatives of past members of Abarihamwe Livestock Cooperative Society Limited.
“The claimants brought an action against the respondents for: a declaration that the 2nd, 3rd and 4th respondents are not legitimate members of the 1st respondent society, nor are they the legal representatives of any of the past members of the said society,” the ruling further reads.
It further adds that the claimants also sought a declaration that they are the legitimate members/legal representatives of the past members of the society and are entitled to the management of all its affairs.
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