Nakasero, Uganda (UG STANDARD) – The State House Anti-Corruption Unit (SHACU) has announced an intensified crackdown on ghost Emyooga Savings and Credit Cooperative Organizations (SACCOs) and corrupt district leaders involved in the misuse of funds. This initiative was solidified during a high-level meeting on November 15, 2024, at the State Lodge in Nakasero, attended by senior government officials, including Resident District Commissioners (RDCs), Resident City Commissioners (RCCs), National Resistance Movement (NRM) Division Chairpersons, and district security officers.
The meeting’s primary focus was to address alarming reports of irregularities in the disbursement and utilization of Emyooga funds, a critical initiative aimed at improving livelihoods and fostering market-oriented production in local communities.
Investigating Irregularities
Senior Presidential Adviser on Political Affairs, Mr. Moses Byaruhanga, vowed thorough investigations into the existence of ghost SACCOs and the mismanagement of funds. He directed the Microfinance Support Centre (MSC) to collaborate closely with local leaders and security officials to assess fund utilization and verify the existence of SACCOs.
“We have intelligence reports indicating critical shortcomings in the management of Emyooga funds,” Mr. Byaruhanga revealed. “These include personal use of funds, inclusion of ineligible beneficiaries, high rates of non-operational SACCOs, external interference, and lack of accountability.” He emphasized SHACU’s commitment to recovering misappropriated funds and enforcing strict compliance with eligibility criteria.
Funds Disbursement and Utilization
MSC reports indicate that Kampala City has received UGX 17.02 billion allocated to 562 SACCOs, with an additional UGX 2.22 billion provided as seed capital to 111 SACCOs. However, the disbursement of new funds has been suspended pending thorough investigations into mismanagement and the existence of ghost SACCOs.
MSC official, Mr. William Kirunda, confirmed the suspension, stating, “The misuse of funds and ghost SACCOs must be addressed before we can resume fund disbursements.”
Leaders Raise Alarms
Local leaders expressed deep frustration over widespread corruption and mismanagement. Mr. Godfrey Luwaga, the NRM Chairperson for Kawempe Division, reported that most SACCOs in his area are ghost entities. “Only 10 SACCOs are active. Members claim they were given the funds as tokens of appreciation, while SACCO leaders have disappeared with the money,” Mr. Luwaga said.
Similarly, Mr. Nicholas Arinaitwe, the NRM Chairperson for Nakawa Division, highlighted a lack of transparency. “Some SACCOs have vanished, and the challenge of funds mismanagement persists,” he noted. In Rubaga Division, NRM Chairperson Mr. Abdallah Kitatta accused certain government officials of colluding with SACCO leaders to embezzle funds. “This corruption must stop. These officials should be arrested,” Mr. Kitatta demanded, adding that primarily taxi and boda boda SACCOs remain active.
Capacity Building and Education
The Deputy Resident City Commissioner for Makindye Division, Ms. Caroline Nanshemeza, emphasized the need for education and training to ensure sustainable fund utilization. “People need to be sensitized on the proper use of these funds to ensure sustainability,” she said. However, some beneficiaries argue that the funds are insufficient, with Veteran SACCO members in Makindye Division expressing dissatisfaction over the limited funding restricting meaningful utilization.
Emyooga Initiative’s Potential and Challenges
Launched in 2019, the Emyooga Presidential Initiative on Wealth and Job creation aims to uplift communities through financial support for local enterprises. Despite its ambitious goals, the initiative faces significant challenges, including ghost SACCOs, inadequate accountability, and limited member awareness, which undermine its potential impact.
Assistant RCC for Kampala City, Hajjat Fatuma Katongole, highlighted the importance of accountability mechanisms. “It is crucial to enforce traceability in fund distribution and strengthen SACCO resilience to achieve the program’s objectives,” she advised. Mr. Byaruhanga reiterated the government’s commitment to empowering local communities through financial support, emphasizing the need for funds to serve their intended purpose and create tangible impacts.
Disbursed Funds per Division
Each SACCO is entitled to UGX 30 million as seed capital, with additional funding of UGX 20 million per SACCO. Central Division’s 234 SACCOs have received UGX 7.04 billion, with 47 SACCOs receiving an additional UGX 940 million. However, 63 SACCOs are reported as non-existent. Makindye Division received UGX 2.17 billion for 66 SACCOs, with 17 receiving additional funding, yet many remain inactive or mismanaged.
Nakawa Division’s 56 SACCOs have been allocated UGX 1.72 billion, though most are reportedly ghost entities. Kawempe Division, with 103 SACCOs, was allocated UGX 2.98 billion, but only about 10 SACCOs are active. Rubaga Division’s 207 SACCOs received UGX 3.11 billion, yet several remain non-functional, with reports of leaders misappropriating funds.
As SHACU intensifies its efforts to combat corruption, the future of the Emyooga initiative hinges on stringent oversight, transparency, and accountability to fulfill its mission of transforming livelihoods.
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