By Chris Mugasha
Bushenyi district authorities have launched investigations into the operations of about eight Savings and Credit Cooperative Societies (SACCOs.)
According to the Bushenyi Resident District Commissioner (RDC) Robert Atuhaire, there are lots of reports of fraud and mismanagement in these SACCOs.
He said they have already sent reports to the ministry of trade and cooperatives informing them about the ongoing mismanagement. Atuhaire said they want the ministry to send a team to conduct audits as soon as possible.
Atuhaire however said as they wait for the ministry to intervene, they are conducting their local investigations.
Atuhaire said, “We are not going to sit and wait for their total collapse like what has happened to Bumbeire SACCO and Ruharo heifer project.”
The RDC could not disclose the details of the SACCOs under investigations in order not to jeopardize the process of investigations.
He explained that the exercise is being done by the district commercial office, police and other security organs. “There is a lot of connivance between the Boards of Directors (BODs) and the management,” he said.
Recently five top officials of Bumbeire SACCO in Bushenyi district were arrested for allegedly causing the collapse of the SACCO.
Those arrested included the General Manager Adonia Nsheme Tushemereirwe, the SACCO’s former Board chairman Francis Nduru and the branch managers.
They are being accused of mismanaging Bumbeire SACCO where over 2000 members/shareholders have lost their money estimated to be over Shs600million. They were however later released on police bond as investigations continue.
The Greater Bushenyi police spokesperson Martial Tumusiime said that the police detectives are handling the matter.
Expert speaks out
According to Harriet Muhebwa an expert in micro finance, one of the major challenges leading to the collapse of SACCOs is lack of trusted leadership and management. Muhebwa who is the founding manager of Kyamuhunga People’s SACCO one of the giant SACCO in the country said, “for a SACCO to sustain its growth, it must be in the hands of devoted, focused and committed leaders who are committed to the vision, mission and objectives of the institution/SACCO.”
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