Newslex Point News in Uganda, Uganda news
Kikuube Resident District Commissioner Amlan Tumusiime has suspended Kikuube Sacco over theft of government emyooga funds.
This is because of the simmering scandal over the theft of Emyooga cash from a SACCO bank account in the western district of Hoima.
The RDC has also written to the bank stopping the disbursement of Emyooga funds to SACCO groups.
In his April, 12 2021 letter, addressed to the Branch Manager DFCU Bank Limited Hoima, Tumusiime ordered the bank to halt the disbursement of Emyooga funds to SACCO members until further notice.
According to Tumusiime, Uganda Microfinance Support Centre wired over Shs 1 billion to 36 Saving and Credit Co-operative Society (SACCO) accounts in Kikuube district to support 826 Emyooga groups.
Eighteen of the SACCOs are in Buhaguzi East Constituency, while the rest are in Buhaguzi Constituency.
The suspension means that Emyooga association members who have prepared to get money to boost their businesses will have to wait until they lift the suspension.
According to Tumusiime, the district leadership has noticed that SACCO leaders are misappropriating the funds meant to fight poverty and create job opportunities.
He said he has also observed that there are no set guidelines to follow to access the money. This has led to the embezzlement of the funds.
The suspension comes after authorities in the district arrested John Paul Mugabi, the chairman of Buhaguzi Constituency Mechanics Saving and Credit Co-operative Society (SACCO). They arrested him on suspicion of stealing Shs 15.2 million from the SACCO bank account. Apparently he used the money to buy a personal vehicle.
Tumusiime said they recieve several reports of mismanagement of Emyooga funds daily. He said police is hunting down the chairperson of Buhaguzi Constituency Veteran’s Saving and Credit Co-operative Society (SACCO) who withdrew money and disappeared.
Tumusiime also said the Emyooga cash thefts forced him to suspend the withdrawal of the money. He said they will inform the bank about the next course of action after sorting out the issue.
“This is to request you to immediately halt the disbursement of all Emyooga funds on SACCO accounts. The members have been directed to pay back their initial payments received by signatories and members of the SACCO”. He wrote to the bank, adding that the bank should allow the members who are paying back to deposit.
“Please note that this measure and directive comes into effect today, the 12th of April 2021. It will be upon the recoveries of the monies misappropriated that I will issue a statement. This will allow the re-assumption of the disbursement,” the letter further reads.
Tumusiime said that some district officials are conniving with signatories to steal the money but threatened to arrest all of them.
Musa Mugisa, a member of Buhaguzi East Carpentry SACCO, welcomed the freezing of the SACCO accounts. He said if there are anomalies in the implementation of the programme it is right to halt cash withdrawals.
He said, however, that members need to be taught about the objectives of the programme. Because many beneficiaries think the money is a reward for their political loyalty.
“I know the suspended disbursement of money will have a negative impact on the beneficiaries who need this money to boost their business. But what should we do if some members are misusing the money?” he said.
The Kikuube District Community Development Officer, Annette Kabahaguzi says they sensitized the SACCO members. Especially on how to utilize the money but many believe it’s a political reward.
“This money is supposed to rotate in the SACCO. To help the population to fight poverty and create their own jobs. But since this programme started in the political season, many think they gave them the money in appreciation for voting some politicians,” she explained
Check also;
- Parliamentary Sacco Suffers Shs100 million Loss
- Workers MP Margaret Rwabushaijja To Advocate For Teachers Interests
- Farmers Demand Special Funding To Boost Agriculture Sector
Please use the button below to contribute to Newslex Point, Inc. using a credit card or via PayPal.
