Some of the Angry Tobacco farmers who Stormed Post Bank Arua for the Money on Monday.
Over 100 tobacco farmers on Monday stormed Post Bank in Arua, demanding full payment of money owed to them by the Continental Tobacco Company since 2018. In that year, 1,500 farmers from Arua, Terego, Koboko, Yumbe, Maracha, Arua City, and Madi Okollo sold their tobacco leaf to Continental Company but were never paid.
After years of waiting, the farmers, through their cooperative societies, petitioned the government for redress. Earlier this year, the Ministry of Trade and Tourism secured funds to pay the farmers, many of whom were advised to open accounts with Post Bank to receive the money.
However, since Thursday last week, several farmers who received SMS payment alerts were frustrated upon learning they could not withdraw more than UGX 3 million, a limit the bank said was imposed for security reasons. The situation escalated on Monday when dozens of dissatisfied farmers stormed the Arua branch of Post Bank, demanding full and immediate access to their funds.
Christopher Adia, Chairman of the Tobacco Farmers’ Cooperative Union, acknowledged the security concerns behind the withdrawal limits. However, he said the farmers had grown impatient and demanded full payments, prompting the union and bank to review the policy.
Trophimas Anguzu, the Branch Manager of Post Bank Uganda in Arua, confirmed that the bank opened over 400 accounts for the farmers. He explained that the initial decision to limit withdrawals was made in good faith, to prevent theft and safeguard farmers. Following consultations with regional political leaders and farmer representatives, the bank later agreed to grant full access to the funds.
The payments mark the resolution of a long-standing dispute between the farmers and Continental Tobacco Leaf Company, with claims totaling UGX 21 billion. Some farmers received as little as UGX 200,000 via Mobile Money, while those owed more were directed to open bank accounts.
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