Maj. Gen. Saleh's Divinity Union in cash crisis

MAJOR-Gen Salim Saleh's Divinity Union (DU) is reported to be in a financial crisis and might be forced to wind up, reports Yunusu Abbey. The New Vision made fruitless efforts to get an official explanation over the problems facing the two-year-old DU. Impact Associates has been hired to establish the company's assets and liabilities. The consultants are expected to complete the work next month. "Afande Saleh also wants to know his assets and liabilities to enable him declare his wealth to the Inspector General of Government (IGG)," said a source close to the retired general. Sarah Kagingo, the DU spokesperson, ruled out the possibility of closing the company this week. "There is no cause for alarm because the situation is under control," she said. But she declined to divulge details. Prince John Barigye, one of the DU directors, referred The New Vision to Saleh. DU had mainly concentrated in the agricultural sector and had entered into joint ventures and bought off some of the major coffee unions in the country. They include Sebei, Bugisu, Banyakole Kweterana and Okoro coffee unions. It had also planned to diversify its investments. But some reports said the company had lost about sh10b, which it had sunk in the coffee industry. "The deals seem to have gone sour due to mismanagement and the slump in coffee prices. Presently, Divinity Union is also heavily indebted," said a source close to the company. "The company has also been facing stiff competition from private coffee dealers like Kyagalanyi, Ugacof, H.M Nsamba and others," said the source. Other sources claimed Saleh's philanthropic zeal could have led to the company's current crisis. He had been known for his generosity where he dished out cash to the needy. Saleh,who spoke through an aide yesterday, promised to speak to The New Vision later this week about his company's financial crisis. Mr. Kassa Kebede, the company's Ethiopian-born managing director, was reported to be in London. DU's directors include Prince Barigye, Capt. Abbey Mukwaya, Mr. Owiny Dollo and Dr. P'iwang. Until recently, Saleh's cash donations ranged from sh5m onwards. For instance in November last year, he donated sh20m to Ngabo Academy in Mbarara while sh10m went to the national athletics team that had failed to make it to South Africa for the All Africa Games. Early this year, he also bailed out the national athletics team that was travelling to abroad for the World Cross-Country.