The Minister of State for Microfinance, Haruna Kyeyune Kasolo has ordered the arrest of members of Emyooga Sacco for elected leaders in Butembe and Kagoma County Constituencies in Jinja district for defaulting Emyooga Programme funds.
The Emyooga, literally meaning skills, is a Presidential Initiative on wealth and job creation which was launched by President Museveni in 2019 as part of Government’s continuous strategies to transform 68% of Ugandan homesteads from subsistence to market-oriented production.
The initiative targets 18 specialized enterprises namely; Bodabodas, Women Entrepreneurs, Carpenters, Salon Operators, Taxi Operators, Restaurant Owners, Welders, Market Vendors, Youth Leaders, Persons with Disabilities (PWDs), Produce Dealers, Mechanics, Tailors, Journalists, Performing Artists, Veterans, Fishermen and Elected Leaders.
While monitoring the performance of Emyooga Programme in Jinja district on Monday, Minister Kasolo established that members of the Sacco for elected leaders in Butembe and Kagoma North Constituencies defaulted the money, yet Emyooga is a revolving fund.
Jinja district Deputy RDC, Kigongo Juma said most of the defaulters are from the sub counties of Buyengo, Buwenge rural, and Buwenge Town Council.
The defaulters dodged the meeting in which Minister Kasolo monitoring the performance of the Programme.
“I and Microfinance Support Centre have discovered that among the SACCOs that received the seed capital especially in Kagoma North Constituency, there is a SACCO of elected leaders which received 50 million [as seed capital], but has not returned the money [yet it’s a revolving fund],” Kigongo said.
“Also in Butembe, the SACCO for elected leaders received 50 million, and has not refunded the money. So, if we are to make the Emyooga Programme successful, we have to make sure that those defaulters are handled with an iron fist. That money they defaulted include their SACCO members’ savings,” he added.
As a result, Kasolo ordered Kigongo to have all the defaulters arrested.
“RDC, arrest whoever is a defaulter, and recover that money. After that, they sit down and plan how to rebuild that Sacco. In other parts of the country, the Saccos for elected leaders are performing well,” Kasolo said.
In response, Kigongo said the defaulters will be handled with an iron to have the money returned.
“We are going to work with Court, and Police to make sure that those people are arrested, and they return that money. Since this is a revolving fund, their colleagues are waiting for that money to be returned, and they also borrow it,” he said.
Kigongo added that if defaulters are not handled with an iron fist, it will demoralize other Saccos which could in turn do the same.
Performance of Emyooga Programme in Jinja District
The district received 1.68 billion shillings as seed capital from Microfinance Support Centre.
The money was disbursed to 54 Saccos in three Constituencies of Kagoma County, Kagoma North and Butembe Constituency.
The 54 Saccos are formed by 279 Associations. The Saccos have made savings worth 662 million shillings.
The loan disbursement to the end user beneficiaries of all the 54 Saccos, is 2.19 billion. The disbursement arises out of the seed capital received from Microfinance Support Centre, the Saccos savings, share capital and other sources of income of the Saccos.
Meanwhile, Kagoma County in particular received seed capital worth 560 million from Microfinance Support Centre.
Saccos in the Constituency have made savings worth 200 million, with loan disbursement amounting to 600 million shillings.
The Saccos have not operated without challenges, and among the challenges raised include; multiple membership as various members buy shares in various Saccos.
Others include; lack of well established offices which leaders said, has slowed down operations, community attitude on government programmes as many still think that money for Emyooga is an appreciation from the President, poor linkage and coordination among Associations that form a Sacco, poor saving culture among others.
