SACCOs Urged to Fulfill their Membership Obligations

Uganda Cooperative Savings and Credit Union (UCSCU), chairperson, Jalia Bintu Lukumu has asked SACCOs to fulfill their membership obligations to enable the smooth running of the projects.

While addressing the SACCO chairpersons under their umbrella body UCSCU at the 45th annual general meeting on 4th October 2019 held at UCSCU SACCO academy in Maganjo, Kampala district, Hon. Bintu who is also the chairperson of the parliamentarians SACCO urged cooperators to fulfill their commitments to the project to enable the Union business progress.

“I thank all SACCOs that have made their contributions during the year. However, as Board, we have concern over a few SACCOs which have not fully met their membership obligations and we ask them to do so. We invite a discussion on this matter to ensure that our Union business remains a going and growing concern.” Bintu said.

She, however, thanked all the partners who have supported the Union throughout the year; the mother Ministry of Trade Industry and Cooperatives, Ministry of Finance Planning and Economic Development, Cooperative Development Foundation of Canada (CDF), Savings Banks Foundation for International Cooperation (SBFIC) and others.

Bintu adds that, as the chairperson, her focus in the coming financial year will be on enhancing the union’s relevance to its members, mobilizing the members to increase patronage of the union products and services and establishment of a regional chapter system.

Dr. Sylvester Ndiroramukama, the Chief Executive Officer said, there was a great improvement in participation of SACCOs in UCSCU, adding that, 16 new member SACCOs joined the family this year to bring the total membership to 1,295 SACCOs.

“The Union has continued to register success with more members joining the family. We have now expanded our capacity to 1,295 members. Membership dues contributed amounted to 190millions in entrance fees, annual subscriptions, and national education fund.” Ndiroramukama said.

Ndiroramukama, however, noted that this was 67% performance against the annual target of 285M. He also pointed out the poor performance in the overall union’s business income where the union realized only 505M against the annual target of 1Bn. He attributed poor performance to customized trainings from SACCOs which contributed only 15% and the consultancy income from Project for Financial Inclusion in Rural Areas (PROFIRA) trainings from SACCOs which realized only 52%.

Mr. Naalima Benedicto, the Supervisory Committee (SUPCO) chairman said despite considerable achievements registered this year, UCSCU faced numerous challenges. He pointed out an impairment loss of USh. 5,076,609 which was registered in the last financial year, lack of experience and knowledge about debt collection by the staff and loan committees visa-a-vis many ageing loans amounting to USh.8,979,324, which have reached irrecoverable stage, expensive internal and external audit services, which consume a whooping USh.16,514,000, expensive and poor-quality stationery including printing costs, which took USh. 5,660,000, expensive accounting software installation, among others.

Naalima noted that the board members need to intensify lobbying practices to engage more partners like the donors and government grants as a way of fighting the weak financial positions for both UCSCU and SACCOs.

He urged cooperators to look for all activities and opportunities that seriously aim at building the strongest sustainable union and member SACCOs in general.

Uganda Cooperative Savings and Credit Union is a National Apex body for Savings and Credit Cooperative Organizations (SACCOs). UCSCU was founded in 1972 and is currently registered under the Cooperative Societies Act 1991 and Cooperative Societies Regulations 1992.

The post SACCOs Urged to Fulfill their Membership Obligations appeared first on The Cooperator News.

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