Oyam district chases Shs 26.4bln in unpaid PDM funds

OYAM, September 30, 2026 — Authorities in Oyam district are struggling to recover Shs 26.4 billion disbursed to 27,431 beneficiaries under the Parish Development Model [PDM], raising concerns about the sustainability of the programme funded by government.

District officials say only 0.001 percent of the money has been recovered so far, despite the expiry of the beneficiaries’ grace period.

Oyam received the funds from the 2021/2022 financial year onwards, with each beneficiary receiving Shs 1 million to invest in income-generating activities in the agriculture sector.

Alex Enon, the Oyam District Commercial Officer and PDM Focal Point Person, told this reporter in an interview that many of the loans had fallen due, but recovery remained extremely low.

“Oyam District has 74 parishes, and we have received funding for all of them. From the 2021/2022 financial year to date, we have received about Shs 26 billion, which has been disbursed to 27,431 beneficiaries. However, we have recovered only 0.001 per cent of the funds,” Enon said.

He attributed the poor recovery partly to the limited number of Wendi service providers in the district, which he said had made it difficult for beneficiaries to make repayments.

Shs 3.7bln awaits disbursement

The district is also holding Shs 3.7 billion under the third phase of the PDM programme.

Enon said the money had not yet been disbursed to the intended beneficiaries because of delays in electing and installing PDM SACCO leaders.

He said the district had completed the governance and leadership processes, including the election of vetting committees and SACCO board members. The remaining step, he said, was to change the bank signatories.

“Currently, we still have Shs 3.7 billion on the account. The funds were released by the Ministry of Finance for disbursement to beneficiaries, but we could not release them because we had to complete the governance reforms,” Enon said.

“The signatories are now being changed at the bank, after which the funds will be disbursed.”

Leaders blame political interference and ‘wrong mindset’

Cesar Apali, the Oyam District LCV Vice-chairperson and district government chief whip, attributed the poor recovery to political interference and the perception among some beneficiaries that PDM money was free government cash.

Apali said local leaders had started sensitising communities about the need to repay the money so that other households could benefit.

“At first, people thought it was free money, but they are now beginning to understand that it is government support that must be repaid,” he said.

He added that leaders were using burial ceremonies, weddings and other public gatherings to encourage beneficiaries to honour their repayment obligations.

Defaulters face public naming

Oyam Resident District Commissioner James Shilaku said the district would intensify efforts to recover the funds.

He said PDM, Emyooga, the Uganda Women Entrepreneurship Programme and other government programmes were designed to provide revolving funds, not grants, and that the loans should be repaid to allow more households to benefit from the government programmes.

Shilaku warned that beneficiaries who fail to repay could be publicly named through community meetings and radio programmes.

“We are going to identify those who received the money and those who have not repaid. Their names will be read publicly and on radio stations,” he said.

“Nobody should hide. Beneficiaries must repay the revolving fund so that others can benefit and household incomes can improve.”

He called on political leaders, technical officers and PDM SACCO leaders to work together to improve loan recovery.

Beneficiaries blame poor harvests

Some beneficiaries said they had failed to repay the funds because their enterprises had been affected by unfavourable weather conditions.

Susan Benna Akello, a beneficiary from Amwa Trading Centre in Myene Subcounty, said she invested her Shs1 million in maize production. However, the crop was destroyed by prolonged sunshine.

“I invested the money in maize, but the crop dried up because of the excessive sunshine. I had no option. We should be given more time to repay the money,” Akello said.

Another beneficiary from Odike in Loro Subcounty said he invested Shs 500,000 in piggery and the remaining Shs500,000 in crop production.

He said the piggery project had performed well, enabling him to make a partial repayment, but the crop enterprise was affected by the prolonged dry spell.

“I have repaid part of the loan from the piggery project. I currently owe the Government Shs700,000 and need more time because the crops did not perform well,” he said.

National recovery remains low

The Parish Development Model was launched by the Government in February 2022 to move households from subsistence production into the money economy through financial support, enterprise development and improved access to markets.

According to Ministry of Finance figures, PDM funds have reached more than 3.5 million beneficiaries in 10,589 parishes across the country, with total Government funding estimated at Shs 4.317 trillion.

However, early recoveries remain low, with about Shs 3.42 billion reportedly recovered from more than 12,900 beneficiaries.

https://thecooperator.news/oyam-disburses-shs-15bln-to-pdm-beneficiaries/

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