Tea farmers in Bushenyi District have been left in anger after the High Court dismissed a case they had filed against the board of directors of Igara Growers Tea Factory, in which they accused the leadership of overstaying its mandate, corruption and mismanagement.
The farmers had petitioned the court seeking orders to compel the board to convene an annual general meeting (AGM), which they hoped would pave the way for the election of new directors and restoration of proper governance within the factory.
However, the High Court in Bushenyi dismissed the matter, ruling that the dispute should have first been referred to the Registrar of Companies under the Uganda Registration Services Bureau (URSB), rather than being brought directly before the court.
Lawyers representing the petitioners have criticised the decision, saying the court did not address the substantive issues raised by the farmers.
Kelvin Balyebuga, the farmers’ lawyer, said while they respect the ruling, they disagree with its reasoning and are considering their next legal steps.
“The court has already pronounced itself but as lawyers we know what to do next. But what can be said with certainty is that the petition as presented by our clients hasn’t been heard based on its merits,” he said.
Farmers had argued that the current board’s term expired in August last year but that it has continued to manage the factory’s affairs, allegedly contrary to the factory constitution.
“We did not get the justice that we expected because all the facts that were put before court for consideration nothing has been ruled on,” said Willis Bashasha, one of the shareholders in Igara Growers Tea Factory.
“We just witnessed a ruling based on procedural issue but missing out on the key issues that were raised.”
The ruling has deepened frustration among farmers, some of whom say the factory remains in operational limbo following its closure months ago due to delayed payments to workers and green leaf suppliers.
Bashasha has now called on the Uganda Registration Services Bureau to intervene and convene an AGM to restore governance structures at the factory.
“The most important thing that we’re seeking as farmers is the AGM but the challenge we have now is who is going to convene it,” he said, adding that even URSB had previously indicated in an affidavit that the factory had no functioning board of directors.
The dispute comes weeks after the resignation of Sam Muhereza, the former board chairperson, who had also taken up a marketing role within the organisation. He had maintained that operations should remain under the status quo until outstanding issues are resolved.
With the court case dismissed, some farmers are now considering an appeal, while others are reportedly seeking presidential intervention in a bid to resolve the escalating leadership crisis at the factory.
