Parliamentary Sacco Suffers Shs100 million Loss

Posted by: lukwago J in Economy October 12, 2018

Started in March 2003 to mobilize money for future development, Parliamentarians’ Savings and Credit Cooperative Society Limited (SACCO ) is counting losses amounting to over Shs100m after three MPs passed away without serving their loan.

According to the sacco chairperson JaliaBintualso Masindi Woman Member of Parliament said this is weighing down their efforts as savers and crippling their efforts to realizing their objective of wiping out poverty and engaging members in development projects.

his was revealed on Friday during the 15^th Annual General Meeting held at Parliament Conference Hall that was officially launched by Speaker Rebecca Kadaga under the theme “Cooperation and Economic Transformation through Member driven Societies”.

According to the report presented by the Chairperson of the SACCO, , the death of Cyrus Amodoi, former Toroma County MP, William BeijukyeZinkuratiire, former Ruhama County MP and former Buhaguzi County MP, Tom Kyahurwenda cost the SACCO a total of Shs122,364,207 losses in unpaid loans.

MP Bintu revealed that the SACCO has “written off the following loans for our deceased members.”

Amodoi who died in a motor accident in March 2017 had picked a loan of Shs75,620,690, while Beijukye who succumbed to Hepatitis B in November 2017 owed the SACCO Shs45,032,037. Kyahurwenda owed the SACCO Shs1,711,480 before his death in June 2018.

Speaker of parliament Rebecca Kadaga rallied members of the SACCO to persevere and mobilise savings if they are to achieve their mission and goal of the SACCO.

“How can you borrow not for investment but to spend? There is no certainty in 2021 that you will return to Parliament, so plan like you are not going to come back. Let’s plan how much we need to spend and save as much as we can. I encourage members to invest in real estate so that you can also have a house in Kampala,” Kadaga said.

Board Chair, Bintu announced new interest rates effective October 08, 2018 with short-term loans (up to 12 months) accruing 16% pa, while long-term loans (over 12 months) will accrue 23% pa from 24%pa. Interest on fixing savings (12 months) from 10%pa to 9%pa, interest on fixed savings (24-36 months) from 11%pa to 10%pa, interest on fixed savings (over 36 months) from 12% to 11%pa and interest on regular savings stays at 6%pa.

However, despite the loss, the SACCO registered growth savings rising from Shs13.9bn to a whopping Shs23.8bn with shares growing from 1.7bn to Shs2.3bn.

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