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Bushenyi Cotton Factory Closed Over Debt

The closure of the factory has left hundreds of cotton farmers in the district with nowhere to put their cotton harvests.
The Bushenyi Cotton factory located in Rubirizi district has been closed for failing to service debt amounting to 9 million Shillings.

The closure of the factory has left hundreds of cotton farmers in the district with nowhere to put their cotton harvests.

The factor was closed by blockers from Solidarity Associates following a court order.  The court papers indicate that the debt amounting to 9 million Shilling arose from a civil suit that was filled by a one Richard Happy Katehangwa, in the Mbarara High Court against the factory over disagreements that arose from the vehicle hired to transport cotton in 2009.

The High Court in Mbarara ruled in favour of Richard Katehangwa and awarded a cost of the suit amounting to 9 million Shillings, which the factory has not paid.

Francis Baguma Kafura of Solidarity Associates, who executed the court order says that several attempts were made to get Bushenyi Cotton company to pay up the debt but they failed to respond which, prompted its closure.

Singh Patel, the director Bushenyi Cotton says that the factory was closed in bad faith because he had filed an appeal in court challenging the costs awarded.

John Nsasi, one of the affected farmers says he is stuck with over 500 kilograms of cotton he harvested recently. He sells his cotton to the factory.

Nshemereirwe Jane, another farmer said she has lost a lot of money due to unbought cotton. According to Nshemereirwe, the labourers who picked and transported cotton to the factory are demanding money for their services.

David Kisembo the LC 5 chairperson Rubirizi has appealed to the two parties to sit down and solve the problem amicably.

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