KAMPALA, September 14, 2024 — The Speaker of Parliament, Anita Among, has hailed the Uganda Parliamentary Savings and Credit Cooperative Society [Parliamentary SACCO] for its continuous expansion following a Shs 9.6 billion growth in gross income as at June 30, 2024, a 15 percent increase from last year’s Shs 8.3bln attained in the same period.
In a speech read on her behalf by the Minister of State for Trade, Industry and Cooperatives, Frederick Ngobi, Among said the SACCO’s growth is a welcome development, as it shields Members of Parliament and staff from predatory financial institutions with exorbitant interest rates and harsh terms.
“I am cognisant of the importance of this SACCO to its members. It is in the interest of the leadership of Parliament that this Sacco becomes the first and last resort for affordable and readily available capital for its members, instead of relying on exorbitant and exploitative loan sharks on the street,” said Among, during the Sacco’s 20th Annual General Meeting held yesterday at Parliament under the theme, “Cooperatives Build a Better Future for All”.
Among also reported the impending success of efforts to have the SACCO compensated for its 100 acres of land in Mityana, which was compulsorily acquired by the Ministry of Defence and Veteran Affairs under the Land Acquisition Act Cap 235.
“I know that despite the success achieved there have been challenges, in relation to compensation for land comprised of plot 21, 25, 26 and plot 107 which was compulsorily acquired by UPDF in October 2022. Both administrative and political efforts are being put in place to ensure that through relevant government bodies this compensation is fulfilled,” said Among.
She urged the SACCO management to be innovative in developing new products and efficient delivery mechanism such as timely dispatch of loans, favorable savings, loan conditions and acceptance of online deposits.
However, Minister Ngobi on his part noted that he was aware of the challenges SACCOs are facing due to multiple and uncoordinated regulatory bodies, proposing that there should be a single regulator. SACCOs in Uganda currently fall under the regulation of MTIC, the Uganda Microfinance Regulatory Authority [UMRA], and the Bank of Uganda [BoU].
The Chairperson of the SACCO Board, Robert Migadde who doubles as Buvuma Islands County MP said he plans to introduce an amendment in the near future to put right the regulation of SACCOs which he said have fallen into confusion due to over regulation.
“Bank of Uganda requires us to file with them, so does the Ministry of Trade, Industry and Cooperatives [MTIC], and the Uganda Microfinance Regulatory Authority. SACCOs are wondering where to go, with time we hope to come with an amendment such that we streamline the SACCO movement,” he said.
He informed members that a court ruling on whether the earnings from Sacco business should be taxed was concluded and that currently both members’ savings and earnings from investments are tax exempt.
As a result, Migadde said a total of Shs 514 million which was meant to be remitted to the Uganda Revenue Authority [URA] has been paid back to members, although it was noted that despite the exemption of all SACCOs from paying withholding ta on profits, the commercial banks where the SACCO invested its money continued to charge it on interest paid to the SACCO outside the laws.
The Chief Executive Officer of the SACCO Methods Mureebe, said the investments in unit trusts and earnings from fixed interests throughout the financial year were the game changers for the aforementioned 15 percent increase in gross income.
Mureebe added that the institution is celebrating growth in total assets from Shs 67.4 billion in 2023 to Shs 75.9bln in the 2024 financial year representing 13 percent increase. He attributed the growth in assets to increase in savings, equity, and institutional capital
Total savings were Shs 52.7bln as at June 30,2024, compared to Shs 47.6bln saved in the same period in 2023 .
The share capital of the SACCO increased by 14 percent to Shs 5.1bln as at June 30, 2024, from Shs 4.5bln in the same period last year. on the other hand, loans and advances reached Shs 34.6bln in the period under review from Shs 33.4bln disbursed as at June 30, 2023.
“Regarding interest we pay to you on your SACCO savings, the previous year we paid Shs 3.4bln, for 2024 we paid Shs 4.7bln to savers, which was due to big increase in members savings,” Mureebe said.
The SACCO management in fulfilment of the Cooperative Statute, which requires the loan of the deceased members to be written off against the shares and credit balances that the member could have left with the SACCO, wrote off 421.4 million as bad loans. This amount comprised Shs 294.9 borrowed by the former Speaker of Parliament late Jacob Oulanyah, Shs 3.09mln, and Shs 123.4mln acquired by the late MPs Rehema Watongola, and Patrick Okabe, respectively.
The leadership recognised outstanding contributors who they said make their work seamless.
MP Robert Kasolo, the Iki-Iki County] emerged the best borrower, and was recognised for paying back loans promptly.
The Minister of Lands, Housing and Urban Planning, Judith Nabakooba was awarded the best shareholder while MP Fredrick Angura [ Tororo County South] was honoured as the best saver of the SACCO.
https://thecooperator.news/tayebwa-urges-parliamentary-sacco-to-start-own-bank/
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