Bugamba People’s SACCO Gets New Leaders

RWAMPARA – After a few stumbles, the long-shelved election of leaders of Bugamba People’s Savings and Credit Cooperative (SACCO) was held on May 20 in Rweibogo village, Bugamba Sub County in Rwampara district.

The tense election was conducted under the watchful eye of security officers camped at the venue of the special general meeting after two previous Annual General Meetings (AGM) were aborted.

Out of 1,744 members, about 600 turned up to elect new committee members whose term of office expired in 2019.

https://thecooperator.news/rwampara-saccos-get-nod-to-borrow-emyooga-funds/

The special general meeting was presided over by Moses Magumba, a senior officer at the Ministry of Trade, Industry and Cooperatives.

“Some of your members petitioned our office that the previous two AGMs were held but elections were not conducted. Since the term of office had expired and we never wanted a leadership vacuum, we came to conduct a special general meeting today, May 20,” Magumba said.

According to Christopher Ahimbisibwe, the General Manager of Bugamba People’s SACCO, the latest standoff has its roots in an April 2021 petition lodged by SACCO members with the Office of the Registrar of Cooperatives seeking clarity on who should take up leadership positions after the first and second AGMs conducted ended prematurely.

“At the close of the year 2020, members were to elect a new board but to their shock, the chairperson of the vetting committee had elected the full board committee without their approval. Members then wrote a petition in April 2021 to the Registrar of Cooperatives about the failure to elect new statutory committees. The request was honored by the Ministry of Trade who instructed that a special general meeting be held on 20th May 2021, which is today,” Ahimbisibwe said.

However, the anticipated tumultuous special general meeting on May 20, ended peacefully.

Members re-elected Alfred Ainembabazi as the new chairperson of the board committee deputized by Joselyne Nantale.

“On the position of the chairperson, we’ve not gotten any other member competing therefore I declare Mr. Alfred Ainembabazi Bazira as the dully elected chairperson of Bugamba People’s SACCO,” Magumba announced.

Members also elected the new supervisory and vetting committees.

After elections, Alfred Ainembabazi, the new board chairperson accused Amon Mutabarura, the Rwampara District Commercial Officer of causing financial loss to Bugamba People’s SACCO.

Herbert Ndibarema, another elected member, asked the registrar’s office to punish Mutabarura.

“If it’s possible you should either first discipline this district commercial officer or change him from Rwampara because he was behind everything that happened,” Ndibarema.

The new chairman promised to open a new chapter.

“We shall always tell the truth, I promise to unite you all and do whatever you want. I request you to always ask us and get to know what you don’t understand instead of listening to rumors,” Ainembabazi said.

Christopher Ahimbisibwe, the SACCO General Manager, said, “It is now a new beginning and the fact that I have an operating board we are going to cooperate and make sure that the SACCO stabilizes.”

“Our hope is that by the end of this year, our Bugamba People’s SACCO will have reclaimed all its lost glory,” he said.

Magumba said the errant District Commercial Officer will be summoned for disciplinary action.

Interviewed for comment, Amon Mutabarura blamed his troubles on the political mafias in Rwampara that were protecting the former chairman.

“This SACCO was earlier hijacked by the mafias who were at the apex of loan defaulters. As a commercial officer I cannot support something, which is wrong and the moment you support what is right then culprits will find all the means to fail you,” Mutabarura said.

Asked why he suspended the former chairperson, Mutabarura said he was conniving with management to swindle members’ savings.

“Alfred and Centenary were both political agents and due to the fact that politics was still active and fresh in the minds of members, we wanted to change the whole leadership so that they can get someone who is neutral and able to bring the two sides on board but the old board couldn’t concur with me. And then allegations that I was sidelining with some of the aspirants had to arise,” Mutabarura said.

Mutabarura said he is not worried about being punished by the registrar of cooperatives.

“Cooperatives are usually private sector developments unless I did something irregular like causing financial loss or taking a bribe but with an advisory service people may talk irresponsibly. Bugamba People’s SACCO is one of many cooperatives so I am still a custodian in the district,” he said.

Vicent Nuwagira, the deputy Chief Administrative Officer (CAO) of Rwampara adds that the politics involved within the SACCO could not cause punishments to their staff.

“Issues of Bugamba People’s SACCO seem political and they wanted to intimidate one of our staff but otherwise Mutabarura is still our staff and he is working. We can’t suspend our staff just because of your chaos in changing leaders to me there was no case to answer” says Nuwagira

In his closing remarks, Magumba representing the registrar of cooperatives’ office said it was unfortunate for their staff but thanked Bugamba People’s SACCO members for exhibiting total discipline and patience to elect a new leadership.

Bugamba People’s SACCO which was formed in 2005, has a total of 1,744 members, with a share capital of shs 270,917,400, total savings of shs 227,102,653 and a loan portfolio of shs 707,917,587.

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SACCO Demands Leadership Audit

SHEEMA – Members of Kitagata Savings and Credit Co-Operative Society have signed a petition urging the Chief Executive Officer of Uganda Microfinance Regulatory Authority, UMRA, to audit the SSACCO leadership.

In their letter dated April 14 2021, SACCO members demanded a leadership audit into what they called “inflated and fraudulent financial reports presented during their annual general meeting (AGM), insider money lending to relatives and sharing of SACCO funds amongst the management, which contravenes section 95(a) of the Sacco by-laws.”

They also accuse their leaders of misappropriating Shs 2.2million.

The SACCO, formed around 1993-1995, currently has over 4,000 members.

Last weekend, a petition circulated widely showing that Kitagata, once a vibrant SACCO in Sheema District, was struggling and teetering on the brink of collapse.

“In western Uganda, it was Kyamuhunga and Kitagata on top of financial management but if you can check now Kyamuhunga People’s SACCO is now modern. You can even bank using the internet while for us with a membership of over 4,000 we are struggling and on the brink of collapse. I think we need to fight hard to restore our lost glory,” Laban Muhabwe, a retired police officer, said.

Muhabwe, a member of Kitagata SACCO, accused the District Commercial Officer of Sheema of interfering with the SACCO operations.

https://thecooperator.news/mushanga-sacco-celebrates-50-years-of-growth/

“I was appointed as the secretary of the supervisory committee but because I brought out issues, which were pertinent, Allan expelled me from the committee. But is it the work of the commercial officer to expel any members from the SACCO committee?” Muhabwe asked.

Muhabwe said the commercial officer also used his powers to remove him from the supervisory committee and appointed a new vetting committee usurping all the powers of the SACCO management.

“I was also among the candidates vying for the chairmanship seat, so why didn’t they leave the vetting committee to do its work without interference? Muhabwe asked.

He also alleges that the district commercial officer has been colluding with the manager to swindle SACCO funds.

“I am corrupt free and I won’t allow them to take our money again. That’s why he appointed a new vetting committee when we still had a serving committee? You can see how his actions stifle the performance of Kitagata SACCO,” Muhabwe emphasized

Muhabwe, who served as chairman of Exodus SACCO between 2012-2014, said he is ready to turnaround the fortunes of Kitagata SACCO.

“I moved Exodus SACCO from Shs 1.8billion to Shs 7-8 billion within two years then I retired in 2015. So why do you deny me a chance to take on the leadership of Kitagata SACCO where I am a fully-fledged member with over two million shares?” he asked.

Alfred Nuwamanya, another member, said most of the sticking issues would have been addressed during the last AGM but it ended prematurely after the commercial officer suspended elections of the new board committee.

Edith Tusuubira, the Executive Director of Uganda Micro Finance Regulatory Authority, confirmed receiving the SACCO’s petition for a leadership audit.

Frank Besigye Kyerere, the Resident District Commissioner (RDC) of Sheema, said he had not received a copy of the petition nor word from UMRA.

He warned however, that misappropriating members’ savings can lead to arrest and prosecution of the errant SACCO managers.

“I haven’t gotten any copy but I just say it’s unfortunate. You see a SACCO is a body corporate if you are a leader of a SACCO and you embezzle funds you should be charged,” he said.

Karakure Buhanda Allan, the District Commercial Officer of Sheema blamed the Kitagata saga on Muhabwe.

“There is no way you can call a general meeting of over 10,000 members yet members hold their pre-AGMs in their respective villages,” Allan said.

He said Kitagata SACCO is now recovering from the entrenched losses it suffered under the old management.

“From 2005 they had a dormant board, which was led by Rev Bashoborwa. The then manager had taken control of the institution and was fraudulent. And to me for the last four years Kitagata has been on a recovery course.” he said.

He said the former manager was also charged with embezzlement after causing financial loss of over Shs 180 million.

Allan confirmed that the SACCO board had expired in 2019 but the outbreak of Covid-19 never allowed Kitagata to hold any AGM.

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SACCOs Tipped On Playbook For Success

KWANIA – Cooperatives should follow a basic playbook for success which has a blend of good financial character and good governance, Patrick Bura, the District Principal Commercial Officer of Kwania, has said.

Bura offered the management tip while officiating at the recent Annual General Meeting (AGM) of Ikwera Co-operative Savings and Credit Society Ltd at Aduku town council in the northern district of Kwania.

The AGM was attended by about 900 members from the sub-counties of Abongomola, Nambieso, Chawente, Inomo, Akali, Ayabi, Atongtidi and Aduku.

On the same day, Ikwera SACCO elected a new board to run its affairs for the next four years.

Robert Odur, the former SACCO chairperson retained his job, Acayo Molly Grace is the new vice chairperson, Sister Molly Grace (treasurer), and Opio Nam Joseph (general secretary).

Awor Dilish, Adupa Bilington, Lawrence Etin, Ngu Jasper, and Ocaka Sarafina were elected members of the committee.

SACCO delegates elected

The meeting also elected 22 SACCO delegates representing 11 sub-counties in Kwania district.

“It is the duty of the delegates to formally and informally educate the SACCO members. It is their duty to spread the SACCO gospel to potential members.” Bura said.

A 2019 forensic audit found that Ikwera SACCO had made a loss of Shs 245m after unknown assailants broke into its premises and stole members’ savings. A security guard identified as Bonny Doi was arrested.

https://thecooperator.news/saccos-urged-to-embrace-tech-digital-lending/

“The robbery took place amidst loud sounds of door breaking, safe dismantling and wall digging at night but Doi, the SACCO’s security guard, failed to make an alarm or call police officers at Kwania police station, which is less than 500 meters away,” Felix Oguna, the SACCO manager said, adding, “that prompted his arrest, investigations are ongoing although we have not recovered the money.”

Bura however, urged the new board to ensure good governance, which includes having credible leadership that implements good management practices.

“Given the turbulence it has had before, the SACCO is now on track. But it can only keep on track if the board is not selfish and practices good corporate governance,” he said.

He said a strong foundation for any cooperative starts with leaders who are willing to dedicate their time and resources to developing the SACCO.

“Your SACCO’s philosophy is savings and credit so members must be ready to save and save regularly to be able to access credit, which they must repay in time.” he explained.

George KK Akaca, the Aduku Town Council area councilor, urged prudence in appraising individual loan applications to avoid lending money to defaulters.

“Poor appraisal of loan applicants by loans officers has led to the collapse of many cooperatives,” he warned. He said a proper appraisal should take into consideration the applicant’s assets and carefully record their addresses.

“Otherwise, in no time you will find that they have gone bankrupt, or you cannot trace them, and it would be very hard for the SACCO to recover its money,” he said.

Growing SACCO

According to Ikwera SACCO’s General Manager, Felix Oguna, the SACCO, which was started in 2010, currently has 1,129 members.

The SACCO’s loan portfolio shot from Shs 540m to Shs 762m last year. It projects to have saved at least Shs 900m by the end of 2021.

“The SACCO has a number of challenges which include poor loan recovery, delay in loan payment, limited loan fund and high cost security provision among others, but now that we have the delegates in place, slowly the problems will come to an end,” Oguna said.

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Struggling SACCO Appeals For Bailout

HOIMA – A struggling Teachers’ Saving and Credit Co-operative Society (SACCO) in Hoima Oil City is appealing for a government financial bailout – with good reason.

The 175 member Hoima Municipality Teachers SACCO which started in 2018 offers cheap loans of at least 8% interest rate to only government teachers.

There are about 500 government teachers in Hoima city.

Moses Ayebale, the SACCO chairman, said the SACCO is struggling to grow because it lacks funds.

https://thecooperator.news/hoima-elders-stuck-with-two-year-old-sacco/

He said the SACCO was fully registered in February 2019 and has saved over Shs 10 million but the teachers’ demands for loans outstrip its savings.

Ayebale said the high office rent, payment of staff, lack of furniture and other office equipment such as computers are crippling the SACCO.

“We had employed a full time manager but because of inadequate funds to pay him we agreed that he should work three days a week,” Ayabale said.

He said the government should invest in the struggling SACCO to help teachers turnaround their livelihoods and avoid expensive bank loans. He also urged the government to get experts to train them in skills and knowledge of managing the SACCO.

“If the government injects money in our SACCO, we shall be able to meet the teachers’ high demand for loans. And again, there is no harm if the government can provide us with experts to monitor this SACCO. If they can convene a meeting, train us and provide us with tools, it will help us manage our SACCO because we teachers, are not trained in financial management,” he said.

Ayebale said they managed to lobby for Shs 65 million from the government salary loans kitty of Shs 25 billion injected in Walimu Sacco. He said 12 teachers out of the 30 corded within Hoima city have already benefited from the funds.

“To be corded, one must be an active member of the SACCO and on the government payroll. The recovery of the Shs 65 million is good because it only benefits corded teachers. The teachers benefiting from Walimu SACCO salary loans pay 15% interest and 7% of the 15% is given to our SACCO.” he said.

He added that the SACCO expects to get another Shs 200 million from Walimu once the borrowed Shs 65 million is recovered.

Johnson Kusiima Baigana, the Hoima City Principal Education Officer, said the SACCO will save teachers from acquiring high interest loans from banks, which pile pressure on them.

“You find a teacher having loans in more than one bank with high interest rates. When they fail to pay, banks start harassing and chasing them around like thieves. This affects their concentration in class because they are looking out of the window to see who comes into the school. They are ready to take off,” he said.

“The government has a hand in this Teachers’ SACCO because its the government through our president, that encouraged teachers to form SACCOs and even injected billions of shillings in Walimu SACCO to save them from borrowing from banks.” he said, adding that, “We thought our SACCO was going to get soft loans for teachers but we found some challenges at the national level, they have not kept their promises because money is not flowing as we expected.”

“We are going to engage Walimu SACCO managers to find out what went wrong because teachers apply for the money and they get no response.” he said.

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Fuel Theft Derails Oil Roads Construction

KIKUUBE – A steep rise in the theft of cement and hundreds of litres of fuel from Chinese road contractor; China Railway Seventh Group (CRSG) threatens to derail completion of the on-going construction of the Shs 500 billion ,97 kilometer, oil roads project in the Albertine Graben region.

In 2018, the government contracted China Railway Seventh Group (CRSG) to tarmac the 25 kilometer Hohwa-Nyairongo-Kyarushesha-Butole Road, Kabaale-Kizirabfumbi road (25kms) and the 47 kilometer Masindi-Biiso road.

Overwhelmed by the persistent fuel thefts, an CRSG official recently petitioned Kikuube Resident District Commissioner Amlan Tumusime to intervene and stop the escalating vice.

Ambrose Atwine, the company spokesperson, said CRSG is overwhelmed by the problem.

According to information from CRSG, the company loses about 4,500 litres of fuel worth over Shs 162 million to fuel thieves per month, which translates to over Shs 1.3 billion every year.

Charles Muhangi, a maize farmer and cattle keeper in Kyarushesha village in Kyangwali sub-county, said security must intervene and stop the fuel theft.

https://thecooperator.news/market-vendors-tipped-on-sacco-formation/

“We farmers have suffered with poor roads for a long time. It has been very difficult to transport our produce from here to the markets, so when we hear someone sabotaging the construction of these roads, we get concerned because they mean a lot to us,” he said.

RDC Amlan Tumusime said stealing road construction materials was becoming a serious challenge to government projects.

He said government officials including police officers were involved in the theft.

Tumusime said they are investigating several police officers implicated in the theft.

“Several police officers who have been singled will soon have tough measures taken against them and they have started recording statements” he said, adding that the suspected officers have been conniving with truck drivers to siphon fuel from CRSG trucks and sell it in jerrycans.

Fuel thieves connive with company truck drivers to siphon fuel from trucks. The stolen fuel is sold in Hoima, Masindi and Kampala.

Tumusime said spy networks have helped pin down the suspects.

Speaking to theCooperator last Monday, Tumusime said over 10 thugs were arrested, produced in courts of law, charged and remanded last month.

He said the district has managed to impound two vehicles used by thieves to transport the stolen fuel last month and this month.

Vehicle registration number UAD 189K Toyota Corona and Premio registration number UAS 609N were impounded in an impromptu security operation.

The culprits allegedly fled and abandoned the vehicles when security stormed. The vehicles are currently parked at Kikuube central police station.

He said over 10 jerrycans of siphoned fuel, 10 drums and a pipe used to siphon the fuel were also impounded during the operation.

“We first sensitized the community and educated them that these projects benefit them and not the Chinese. I am very happy that the community was empowered and whenever they see anybody stealing fuel, they call us and this has helped us to curb this challenge,” he said.

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Masindi Demands New Modern Market

MASINDI – A heave of frustration and anger is boiling over in Masindi Municipality as vendors lash out at the delayed construction of a new modern market under the Markets and Agriculture Trade Improvement Project (MATIP).

All the riled vendors are allied to Masindi Central SACCO and Masindi Central Market Vendors Association.

David Asiimwe, the chairman of Masindi Central Vendors’ Association, said all requirements were met yet the project is not taking off.

“We have enough land measuring five acres and it’s free from encumbrances. We also want to operate in a good market. Masindi is one of the traditional districts but we are wondering why it has never benefited from this project yet other traditional districts have benefited,” he said.

Asiimwe said the market is in a sorry state.

“We operate in darkness because lights are not enough. We also have a problem of thieves who steal vendors’ items. All the gates are dilapidated, thieves easily break in and steal vendors’ properties,” Asiimwe said.

There’s only one security guard yet the market has five gates, he said.

Asiimwe said too many vendors are jostling for the small, crowded space in the market.

“This can be addressed when a modern market is built. Right now the congestion is uncontrollable. That is why we are calling upon government to expedite the process (of building a modern market). This market was not well planned, that’s why we cannot all fit in here,” he said.

According to Asiimwe, the market has over 2,000 vendors; food handlers, old clothes sellers and fish mongers.

Kenneth Bitaroho, a fish monger, said he is disappointed to see Masindi District lagging behind on development yet other districts have become cities.

“Our leaders promised that the project would commence this financial year but we are seeing the year ending without any development. They keep saying next financial year but nothing happens. If other districts have gotten modern markets, why not Masindi?” Bitaroho asked.

Lamura Kabasindi, a vendor in Masindi Central Market, said when it rains, customers avoid the market.

“Whenever it rains, the market becomes muddy and sometimes it floods. How can a customer come to such a market?” she said.

James Masaba, the chairperson of Masindi Central Market, said SACCO officials who run the market are ashamed to collect dues from vendors working in such a bad situation.

He said vendors run the risk of contracting diseases like diarrhea, dysentery and cholera due to poor hygiene and poor garbage disposal.

“We only have one stance latrine to cater for over 2,000 vendors. This latrine is not enough for the whole population. But all these challenges can be addressed when we get a modern market,” he said.

According to district elders, Masindi Central Market started with makeshift structures in the 1920s. It was later taken over by government in the 1970s.

https://thecooperator.news/masindi-central-market-vendors-revive-sacco-after-5-year-break/

“The first people who embraced it were the Nubians who would sell pancakes and rolled simsim,” Abiasali Kasingwa, 88, said.

On March 23 2020, the Permanent Secretary Ministry of Local Government Ben Kumamanya wrote to the Town Clerk Masindi Municipality, saying; “Masindi Central Market in Masindi municipality has been considered for re-development and as part of the prerequisite for executing the program, you are required to submit the following; a copy of the land title where the market is located, a copy of the register of vendors and a copy of the management structure.”

According to the letter, Masindi Municipal Council authorities were supposed to send the documents not later than April 17th 2020.

Kumumanya promised that the market would be constructed during the 2020/2021 financial year under the Markets and Agricultural Trade Improvement Project (MATIP).

The ministry letter raised lots of hope among vendors only to be dampened later.

Haruna Ismail Irumba, the councilor representing the Civic Ward in the municipality, blames Masindi mayor, the town clerk and the area member of parliament for not following up the matter aggressively.

“We were told that they needed a land title for the project to begin. We secured it two years back but nothing is taking off. I think the delay can be blamed on the laxity of our leaders here because everything required was done long time ago,” Irumba explained.

Interviewed for a comment, Deo Kabugo, the town clerk Masindi Municipality, told theCooperator that he went to the ministry two weeks ago.

“I was told they had advertised for a consultant to do the architectural design. All the required documents were sent. The people of Masindi should be rest assured that they will get the market since it’s already in the process,” he said.

The new mayor for Masindi Municipality Ronald Kyomuhendo Busingye said his team met the Minister of Finance Matia Kasaija who assured them the market will be rebuilt.

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Court Summons Civil Servants Over Forgery

LIRA – Grade One magistrate’s court in Lira has issued summons for three civil servants accused of forging an attendance list of the annual general meeting of Ayago SACCO.

The summons were issued on April 16 after the three skipped court.

The suspects are; Felix Odongo, a businessman, Lillian Alwedo, Richard Oyuku, and Denis Omara, all primary school teachers, and Josephine Alobo, the commercial officer of Lira. They are battling two counts of obtaining money by false pretense and uttering false documents.

However, only two of the accused persons; Josephine Alobo and Lillian Alwedo appeared before Lira Grade One Magistrate Hillary Rwamiranga on April 16.

Three skipped court and they include; Lira businessman Felix Odongo, Richard Oyuku, and Denis Omara, all teachers at Ayago primary school in Lira.

The magistrate remanded Alobo and Alwedo to Lira Central Government Prison until May 1, 2021, and immediately issued summons for the three.

Court heard that the accused, on January 15, 2020, while at Centenary Bank Lira branch, without lawful authority, forged an AGM attendance list of Ayago SACCO members in Lira City West Division.
The prosecution told the court that the accused persons wanted to change signatories to the Sacco’s bank account, but were arrested before they could accomplish their mission.
State Attorney Martin Rukundo also informed the court that investigations were still ongoing.

Ayago SACCO Limited in Lira City East division was established in 2012. It is fully registered with the Ministry of Trade, Industry, and Cooperatives. The Sacco has 2,137 Members, 121 VSLAs, 14 institutions, and a current loan portfolio of over Shs 300m.

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51 SACCOs In Lira Get Emyooga Funds

LIRA –Fifty-one Savings and Credit cooperatives (SACCOs) in the Northern District of Lira have received Shs 30m each under the presidential initiative on job and wealth creation commonly known as Emyooga.

Emyooga was launched in August 2019 by President Museveni to spur a shift from subsistence to market-oriented production.

The government set aside Shs 260 billion to bankroll the programme with each constituency meant to receive Shs 560 million.

James Chemutai, the Deputy Resident District Commissioner of Lira, confirmed the funds have reached the accounts of the beneficiary SACCO groups.

“We have received 51 certificates, 33 are for Erute North and Erute South constituencies, and the remaining 18 for the city. All these Saccos have already received funds on their accounts, that means the president has fulfilled his pledge,” Chemutai told theCooperator in a recent interview.

“When the president launched the Emyooga program, very many people thought it was a campaign tool. They said the president was looking for votes through this Emyooga, which was a total lie. Now that politics is over, many people still thought the money would not come,” he said.

Chemutai applauded the president for honoring his pledge but cautioned beneficiaries to utilize the funds well.

“I take this opportunity to caution the beneficiaries of this money not to eat up this seed because Emyooga is a seed that the president feels should germinate and help the population get out of poverty,” he said.

He said people will be arrested for misusing the money.

The Lira Deputy Commercial Officer Santos Olade said some of the approved Sacco groups have already withdrawn their money from their bank accounts.

Olade said one performing artists SACCO in Erute South had already withdrawn up to Shs 24 million from their account.

“Emyooga guidelines require that when you have deposited Shs1million into the bank account, you end up getting Shs 3 million, so this group had Shs 8 million on their Sacco account so they got Shs 24 million,” he said.

Samuel Odongo, the chairperson of Erute South performing artist SACCO, said they will use the Shs 24 million to buy more equipment and give loans to members.

“We have a lot of experience and talent but we could not showcase it because we were financially unstable but now with the availability of the Emyooga money, we are optimistic we will have a better livelihood,” he said.

On December 11, 2020, the Ministry of Finance, Planning and Economic Development wired Shs 1.5 billion to Lira district and each of the approved SACCO groups account received Shs 30 million.

Erute North constituency received Shs 500 million, Erute South got Shs 530 million and then Lira Municipality (now Lira City West) and East Divisions got Shs 560 million, which was instead wired to Lira City West Division leaving East with nothing.

Emyooga cash is largely given to Ugandans in the informal sector organized in Saccos under 18 clusters including; Boda Boda riders, tailors, taxi drivers, restaurants, welders, market vendors, women entrepreneurs, youth leaders, people with disabilities, journalists, performing artists, veterans, fishermen, private teachers, and elected leaders.

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Budget: Kwania Cooperatives Get Shs 89m

KWANIA –The district local council has allocated Shs 89,378,000 million to run cooperatives next financial year. The money will go to the 14 fully registered Saccos in the Northern district, and 917 Village Saving Associations (VSLA).

According to the draft budget presented before the council on April 19 2021 by the Secretary of Finance and Administration Geoffrey Eling Owera, Shs 89m was allocated under Trade, Industry, and Local Economic Development.

The money, according to Eling, will cater for market linkage services, cooperatives mobilization, and outreach services.

About Shs 2.9bn has been allocated to production and marketing, Shs 669m to statutory bodies, finance (Shs 216m), and administration (Shs1.7bn), while Shs 280m went to natural resource, community-based services got Shs172m, water and sanitation (Shs 582m) and Shs 967m was allocated to works and technical services among other sectors.

The draft budget was consequently deferred to the sectoral committee for scrutiny before the final approval in the subsequent council sitting as directed by Local Government Minister Raphael Magyezi.

The district, however, has a shortfall of about Shs 4bn in 2021/2022. In the financial year 2021/2022, the district projected to raise about Shs 24.5b down from Shs 28.6 billion projected last financial year.

Geoffrey Eling Owera, the finance secretary, blamed the shortfall on the Covid-19 pandemic, which disrupted local government revenue. Eling told the council that the district only managed to raise 20 percent in local revenue in the last F/Y interrupted by Covid-19.

Eling said key stakeholders and district leaders have to lobby for more funding to improve service delivery.

“Mr. Speaker, as leaders and stakeholders in the district, it is our full responsibility to mobilize for more funding from donors through lobbying and advocacy, this calls for concerted efforts for the wellbeing of the people of Kwania district,” he added.

Albina Awor, the chief administrative officer of Kwania, blamed the budget shortfall on the change of the Indicative Planning Figure (IPF) and a ban on charcoal burning and transportation, a major source of local revenue.

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Kwania boda operators Protest government tax

A government-pushed proposal to levy an extra tax of Shs 50,000 on motorcycles has touched off a fierce debate and protest among members of Kwania Boda Boda Savings and Credit Cooperative Society (Sacco).

In the new proposal, the government suggests that all owners of motorcycles including Boda Boda operators will be subjected to an annual tax of Shs 50,000 effective July 2021.

The levy, which is currently being scrutinized by the finance committee of Parliament, is among a string of new taxes government intends to introduce to raise at least Shs200b in annual revenue.

However, the over 200 Boda Boda Sacco members, under their umbrella group; Kwania Boda Boda Association (KBBA), have asked the government to back down on the proposal.

Speaking during the annual general meeting on April 15, the Boda operators argued that levying an extra tax on their operations would diminish their earnings.

Jimmy Obaro, a Sacco member, said an extra tax would push them out of business.

“Currently, motorcycle owners pay an annual Public Service Van (PSV) license of Shs 60,000 and Shs50, 000 for motor third party, leave alone the local service tax, if the government goes ahead to levy another tax then many would be left with no option but to quit Boda Boda business, this will affect our Sacco, which entirely depends on the Boda Boda job,” he said in an interview.

Another Boda Boda rider, Robert Abal, who operates at Aduku mayor’s garden, said from about Shs 40,000 to Shs 50,000 he makes weekly, he saves Shs 100,000 monthly. He is worried that the new tax will affect his savings and render him bankrupt.

Walter Opyene, the Kwania Boda Boda Sacco chairperson, said 80 percent of his members got motorcycles on loans and are saddled with the burden of repaying the money. He wants the government to back down on the proposal.

In an exclusive interview with the Cooperator last Wednesday, Bageya Waiswa, the permanent secretary in the Ministry of Works, said an extra tax on the Boda Boda sector will help the government to ascertain whether a motorcycle meets required standards.

“Regulating the motorcycle or the Boda Boda industry will in the first place, reduce rampant motorcycle thefts, control accidents and all in all raise revenue to improve service delivery,” he said, noting that the government had restarted the process to ensure SGS resumes inspecting motorcycles and motor vehicles.

According to Bageya, the government is seeking to at least raise Shs7b from motorcycle license.

So far 63,878 motorcycles have already been cleared to enter the country during the first and second quarter of the 2022/21 financial year. However, the current trends indicate the figure will grow by the end of this financial year, giving the government an opportunity to increase revenue projections.

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