Emyooga: Shs 1.7bln not yet recovered in Kumi
KUMI – The authorities in Kumi district are struggling to recover about Shs 1.7 billion advanced to various Savings and Credit Cooperative Societies [SACCOs] under Emyooga Programme.
In 2021, government through Microfinance Support Centre [MSC] Shs 1.68bln to 52 SACCOs in the three counties of Kanyum County, Kumi County, and Kumi Municipality with each constituency receiving Shs 560mln.
However, while presenting the performance report during a sensitisation meeting on Emyooga SACCO registration, the Kumi district commercial officer, Thomas Olupot who also doubles as the Emyooga focal point person said that recovery of the funds by the district leadership has been appalling.
The meeting organinsed by MSC and held at the Kumi district chambers this week attracted district leaders, and Emyooga SACCO leaders.
Olupot said that though the money was to be borrowed by the beneficiaries through their associations, which subscribe to the different Emyooga SACCOs they were supposed to pay back the money within four months with an interest rate of 5 percent, some members have refused to pay back.
“We have so far recovered Shs 86mln out of Shs 1.68bln disbursed to the beneficiaries in loans,” said Olupot.
He said Kumi Municipality is the best in terms of recovery rate with Shs 47mln already recovered, followed by Kumi County with Shs 22mln while Kanyum County is the worst with only Shs 17mln so far recovered out of Shs 560mln received.
He stated that some beneficiaries have intentionally refused to pay back Emyooga money, claiming it was free money given by President Yoweri Museveni, since the Emyooga Presidential Initiative was launched at the peak of the presidential campaigns in 2020.
“This money is a seed capital and it is a revolving fund meant to help you get out of poverty and improve your household income,” he told Emyooga SACCO leaders.
Olupot noted there are SACCOs that have not paid even a single cent from 2021 when they received Shs 30mln as seed capital.
In order to recover the funds, the meeting resolved to give the defaulters one week’s ultimatum to pay the money or else face arrest.
“As SACCO executives, go and tell the defaulters in your respective Emyooga SACCOs that they have up to Monday next week to pay back the money. Beyond that, we shall mount an operation to arrest the defaulters,” said the Kumi resident district commissioner, Ahmed Washaki.
He said that the defaulters would be arrested and charged in the courts of law for sabotaging government programme.
According to Washaki, this would serve as a lesson to borrowers who do not want to pay back the money they got from the SACCOs well knowing it was a loan.
He continued: “We are not going to tolerate the leaders who have defaulted on SACCO loans. By the end of Monday, all the Sacco leaders will have cleared their loans if they want to survive arrest.”
However, the chairperson Kumi Main Market Produce Dealers SACCO, Simon Peter Odeke pleaded that the given ultimatum be extended to allow them to pay back the money.
Odeke attributed the low recovery of Emyooga funds to limited training of the beneficiaries by both the district leaders and MSC.
He said some beneficiaries have used the excuse of 2020-2021 Covid-19 lockdown to default on paying back the Emyooga money.
However, Martine Akorikin, the Emyooga regional coordinator for Teso Sub-region said they are ready to arrest defaulters with the aid of the police.
“We are soon going to mount an operation to arrest defaulters in Serere district next week, he said,” adding that in Kumi district they will begin with SACCO leaders.
“It is very important for people to know that this Emyooga money is to be paid back. It is taxpayers’ money. You must pay it back because it is a loan,” Akorikin warned.
https://thecooperator.news/arua-city-emyooga-saccos-urged-to-be-audit-ready/
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