Continental Tobacco Fails to Meet Debt Payment Deadline for Hoima Farmers

1995 Views Hoima, Uganda

In short
Continental Tobacco Company manager summoned to explained failure to meet deadline for payment of Ushs 320m to farmers in Hoima.

The Hoima manager of Continental Tobacco Company has failed to meet an ultimatum to pay its million-shilling debt to farmers in the district.

The tobacco farmers from Kitoba, Kabwoya, Butema and Kigorobya accuse Samuel Sumuni of failing to pay them more than 320 million shillings for their crops. They have not been paid since July last year despite repeat demands.

A fortnight ago the farmers appealed to the Hoima Deputy Resident District Commissioner, Abdul Swamad Wantimba, for help. He in turn gave Sumuni until March 25th to clear the debt or face legal action.

Wantimba summoned the Continental Tobacco Company manager to explain why he failed to meet the ultimatum.

Samuel Sumuni claimed that the payment process was delayed by the company's head office in Kampala. He promised that it would be ready by Thursday this week.

The Deputy RDC extended the ultimatum to Thursday next week. He said if payment was not made, he would persnoally transport the farmers to Kampala to demand for their pay.