PRO Industries Limited in Ndibuluungi, Luwero District, has refuted recent allegations by traders of non-payment of their unpaid dues for maize they reportedly supplied to the company more than two months ago, as false.
On Thursday last week, more than 50 traders who supplied maize to the Luweero industry, blocked the entrance to the factory over alleged delayed payments amounting to more than UGX 2.5 billion.
However in a statement released on Monday, the company refuted the claims, revealing that a detailed review of the supplier’s account and supporting records, found material discrepancies and inflated figures in the statement presented by the supplier.
“Accordingly, PRO Industries categorically rejects the suggestion that the company is simply withholding money legitimately due” the statement read.
The Founder and Executive Director, PRO Industries Ms Vasundhara Oswal revealed that the company has also received evidence that personnel working at it’s weighbridge were threatened and pressured in connection with attempts to manipulate weighbridge records and facilitate fraudulent entries.
“What initially appeared to be a supplier demanding additional payment has become much more serious following our review. We identified inflated figures in the supplier’s statement and have received evidence concerning threats made to our weighbridge personnel in an attempt to manipulate records” she said.
She added, “We will not allow anybody to intimidate our employees or pressure this company into paying money based upon false or manipulated information”.
Ms Vasundhara noted that the company considers the continued demand for additional money, coupled with public demonstrations and pressure against the company, to be an attempt to force the company into making a payment which its records do not support.
“The company will not make such a payment” she said.
She further revealed that prior to the protest, the company had on multiple occasions invited suppliers to attend reconciliation meetings with it’s accountants, which was turned down by the suppliers, who also declined a Memorandum of Understanding under which the company would make an immediate payment of 50% of the undisputed amount on the day of signing, with the remaining balance to be settled following a proper reconciliation.
The Director, PRO Industries, Ms Riddhi Oswal, described the inflation of prices as a shame, which can create a damaging impression.
“……when the overwhelming majority of Ugandan farmers we work with are honest, hardworking people. They should not be associated with attempts to inflate accounts, interfere with weighbridge records or use threats and public pressure to obtain money” she said.
The company has further warned it’s suppliers against fraudulent or manipulated transactions which disadvantage honest farmers and suppliers by undermining confidence in the company’s procurement system.
