Mbarara SACCO officials on spot over missing funds
The two officials were implicated in the 2022/23 external audit report presented during the recent special general assembly held at Mbarara Central Market
MBARARA CITY, August 15, 2024 – Former Mbarara Central Market Vendors’ SACCO Chairman, Muhammad Nyombi, and the SACCO Manager, Hope Kyokunda are implicated in the alleged mismanagement of funds amounting to over Shs 39.4 million, although the SACCO has also failed to recover loans disbursed to some of its members.
The two officials were implicated in the 2022/23 external audit report presented during the recent special general assembly held at Mbarara Central Market.
According to the financial statement presented by Daniel Kayebe of Mugabi and Mawanda CPA Associates, for the last four years Mbarara Central Market Vendors’ SACCO has been making losses.
Kayebe said the SACCO is owed Shs 91.1mln in loans to members who are not willing to pay back. “Much as there is an unaccounted funds, members also have loans of about Shs 91.1 million which does not even include the interest,” he said.
The auditor said the SACCO currently faces scarcity of money due to nonpayment of the loans, and members’ failure to continue saving.
He faulted the SACCO managers for transacting business without utilising the bank system because borrowers would be handed hard cash whenever they requested loans, but also managers preferred keeping cash in their office.
“The biggest risk this SACCO has is remaining with the money in cash. Money would come and stay at the SACCO office and later be disbursed to other members without going to the bank which becomes so hard to track. the money lost when there are no financial statements.
He said that “the fact that the SACCO’s bank accounts were not receiving money, they went into a negative because of bank charge deductions.”
“You have an account in GTB Bank and another one in KCB bank. The one in KCB bank reflected zero balance and GTB account had only Shs 127,887,” Kayebe said.
The auditor challenged the old board to cooperate with the new board if the market SACCO is to move forward.
He also encouraged the new board to seek guidance and expertise from the technical team to be able to do their work.
On his part, John Byaruhanga, Senior Commercial Officer, Mbarara City south Division, claimed that the uncounted funds could be more than what was read to the members thus challenging the auditors to investigate more.
However, Nyombi accused the auditor of producing a half-baked report, claiming the auditor did not consult the SACCO manager.
“All the financial records are supposed to be provided by the manager of the SACCO. I am surprised that the auditor went to the SACCO office and did what he did without the guidance of the manager,” Nyombi said.
He refuted the allegation that he mismanaged 39.4mln, saying the cashier, and manager who are fulltime employees of the SACCO are the one to account for the lost money.
On his part, Polly Katwire, Assistant Resident City Commissioner [ARCC] Mbarara, confirmed that the Office of the President will lodge an independent audit to investigate the missing government funds totaling to Shs 101.2 million
“We are aware that at the SACCO’s inception [2011], President Museveni gave you a grant of Shs 62.2 million and in 2020, you received Emyooga money of Shs 39 million. When you add up all together that is Shs 101.2mln and we are asking ourselves where that money is,” said Katwire.
He faulted borrowers who have failed to pay back the money, saying they have denied other members a chance to also utilise the money and develop themselves. He said some of the SACCO leaders, and other borrowers who have mismanaged government money would be arrested.
Some of the loan defaulters are; Nissan Katurebe [12.15mln], Kato Abbas [4.1mln], Donozio Kibanda [3.52mln], Rashid Rwanyanga [Shs 3.5mln, Wilson Spencer [Shs 3.48mln], Kellen Kobuyonjo [Shs 2.6mln], Emmanuel Muhumuza [Shs 1.3mln], Moses Mutabazi [Shs 1mln], Mwine Toti [Shs 1.7mln], Hadijah Nambogo [Shs 1.2mln], Biryomumaisho [Shs 2.12mln], Robert Mugume [Shs 1.2mln], Edije Kokushaba [Shs 1.2mln], Richard Nshabaomwe [Shs 1.9mln] among others.
Simpson Mugabi, Current SACCO Chairman reported the new board only found Shs 680,000 in the safe and Shs 170,000 in the bank, as they assumed office.
Katwire also asked the SACCO General Manager to avail a report showing accountability of the money she handled.
“From the Office of the President, we shall cause our own audit because we want to establish whether the former board went with some of the money and also see what the new board found in office,” he said.
Mbarara Central Market SACCO was registered in 2011, and by December 31, 2023, it had it had a turnover of Shs 142.7mln [142,743,505], total share capital of Shs 21.66mln, net profit of Shs 119.9mln, total savings of Shs 22.7mln , loan portfolio of Shs 91.1mln, and membership of over 500 people.
https://thecooperator.news/mbarara-central-market-city-authorities-feud-over-revenue-collections/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
Views: 20
