Mbarara market vendors call for special audit of SACCO

MBARARA-Vendors in Mbarara Central Market have petitioned Mbarara City Council authorities to intervene in their SACCO, which has remained inactive since 2014 yet members have never received any audit report of the SACCO.

According to Emmanuel Muhumuza, the chairman Mbarara Central Market Association, their SACCO, known as Mbarara Central Market Vendors SACCO Limited, last held its annual general meeting on October 23, 2014.

By 2014, the SACCO had capital assets of Shs 23 million, loan portfolio of Shs 144 mln, and a membership of 500 people. Currently, it has about 600 members and total savings of about Shs 400 mln which members claim could have been mismanaged.

Muhumuza adds that ever since the SACCO was registered in 2010, it has had only one chairman, Muhammad Nyombi.

Muhumuza told this reporter that he and other market leaders have been denied access to documents of the SACCO, adding that members want to know the financial status of the SACCO.

Sosten Mucurezi, who has 30 shares in the SACCO said they need new management to revive the operations of the SACCO.

“I used to save there my money but when the leadership lost transparency, I withdrew part of it and halted to save with the SACCO.   Currently, I think I have more than Shs 500,000 on my account,” he said.

He disclosed that SACCO was running mobile money business but leaders have not provided financial records of the business.

Part of the petition to Mbarara City Council authorities says: “We need an audit into the financial affairs of the Sacco from 2014 up to date and avail members with all the relevant information pertaining the SACCO.”

“They are rushing for elections but members want to know the financial status of the SACCO before participating in the elections. They say most of the money is in loans and that another was spent but they don’t show us how it was spent,” Mucurezi added.

Jane Nalongo said, “I am a member, but for the last 10 years, we have never heard about dividends from our SACCO which makes to doubt the leadership of the SACCO.”

“Recently they told us that the money is not in the account yet we know that the money should be there,” she said

Meanwhile, while responding to allegations against him, Nyombi said he is no longer interested in leadership of the SACCO. “Our SACCO never had a vetting committee. Recently an interim committee was appointed and they are verifying members who wish to be leaders,” Nyombi noted.

“When the verification process is over, we shall conduct elections to get the new leaders. It is illegal to handle over the SACCO to the market chairman because a SACCO and the market are two different entities,” he warned.

Hope Kyokunda, the general manager of the SACCO said most of its money is out in loans to members. “Currently, we are not giving out any loans because members have defaulted the SACCO. Almost Shs 90mln is out in loans,” he said.

Jocelyn Kiconco, the acting commercial officer Mbarara City confirmed plans are underway to elect a new board to run the SACCO.

“Recently a special general meeting was held to appoint an interim leadership, which I again tasked to generate a list of all members. We shall continue following the law to elect the new board for the SACCO,” she said.

On the need to have an audit of the SACCO, she said a report would be generated after a new leadership is elected. “After the elections, it’s when we shall carry out an audit which will be handed over to the new leadership for further management,” she said.

Richard Mugisha, deputy city town clerk said the SACCO must operate under the Cooperative Societies Act, as amended in 2020.  “It is not a must that whoever is a vendor in the market must be a member of the SACCO. Joining a SACCO is voluntary and even though the market has a linkage with the SACCO, the two are different entities.

He advised the market vendors’ leadership led by Muhumuza, to help in mobilisation of more members to join the SACCO, adding that there is a need to induct SACCO leaders on their responsibilities.

https://thecooperator.news/arua-district-official-upset-as-members-flee-saccos/

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