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How 3200 Ghost Saccos Shared Ugx 30b PDM Funds

How 3200 Ghost Saccos Shared Ugx 30b PDM Funds

Officials in the ministry of Finance along with 49 districts in the accomplishment of the parish development Model( PDM) face responsibility queries after it emerged that they fished out over Shs 30 billion to a total of 3,214 to unregistered saccos.

However this was contrary against the guidelines that had been issued by the PDM secretariat and the Ministry of Finance.

The revelation in the Auditor General report come as Parliament adopted and opened debate on sub regional oversight reports on the PDM.

However the reports were drafted after lawmakers took a two weeks period to assess the progress of the project in their respective constituencies .

Following yesterday’s plenary sitting in parliament some of the issues that were cross cutting for all the regions. some of the outstanding challenges raised by law makers were disproportionate allocations of the amount,delayed access to funds by Saccos, ever changing guidelines.

Some MPs also observed that it was difficult to determine the intended beneficiaries who make up the 39% in the subsistence economy.

The accounting officers explained that non existent saccos received PDM cash to avoid the sweep back of funds to the consolidated account.

However the Auditor General Mr John Muwanga noted in his report to Parliament that this funding of ineligible Saccos affected the objective of wealth creation.

Some of the hunt districts included Wakaso, Bududa, Sironko, Namisidwa, Bulambuli,Kasese, Manafwa.

The permanent secretary at the ministry of Finance ,Planning and Economic Mr Ramathan Ggoobi explained that in the year under review, all funds were sent through local governments.
“ when accountability challenges were reported the government took a decision to change strategy to directly sending money from the treasury to the Saccos.”he said.

The Auditor General noted that due to irregularities the government wasn’t well prepared to launch the initiative.

This wasn’t the first time such poverty alleviation have been muddled by irregularities including corruption and diversion of funds.

Mr Raphael Magyezi the minster of local government in defence explained that despite the challenges the PDM registered some achievements including recruitment of parish chiefs as well as formation of Saccos.

Prior the government in 2021/22 financial year had rolled out its latest poverty alleviation initiative that aims to lift 39 per cent of households from subsistence economy to commercial production.

These forensic audit findings have been reinforced by reports by legislators who after a two week oversight tour in their respective constituencies in February decried the irregularities in the PDM.

President Museveni who recently embarked on a regional tour to popularise the PDM has also come face to face with the troubles.

“ I heard directly from the wanaichi many bad things .In the town in one of the wards ,people told me about this group where somebody called a (district) commercial officer called a meeting secretly of few people to form the leadership for the parish model because they want to find a way of stealing the money ,” he told members of Parliament during an address last month .”

Over a total of 1,502 registered Saccos in 70 LGs did not receive any funding while others received as low as Shs 2m.

For the financial year under audit each parish was to receive Shs 17m for half of the funds were released .

In the current financial year over Shs 100 m was budgeted for each parish but with two months to its end only a quarter of his this has been released.

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