SHEEMA, April 21, 2025 – Security operatives in Sheema district have arrested two Parish Development Model Savings and Credit Cooperative Organisations [ PDM SACCOs] treasurers for allegedly extorting money from programme beneficiaries.
The first suspect, Juliet Katushabe, the treasurer of Masyoro PDM SACCO, was arrested on April 15, 2025 following numerous complaints from residents. Her arrest was ordered by Sam Orikunda, the Sheema District Deputy Resident Commissioner.
“The suspect has been demanding between Shs 200,000 and Shs 300,000 from beneficiaries in exchange for having their names included on the official list submitted for programme approval,” Orikunda stated.
Annah Kyotungire, a resident of Masyoro Parish, alleged that Katushabe had extorted money from over 90 families since the PDM programme was launched in 2019.
“I wasn’t surprised by her arrest. She’s been extorting people in Masyoro Parish since the programme began. I know one family from whom she took Shs 360,000 from the husband and Shs 350,000 from the wife. There are many others—she would typically ask for Shs 200,000 to Shs 300,000 just to include them on the beneficiary lists,” Kyotungire said.
Katushabe appeared before Sheema Magistrates Court on Thursday and was remanded until 29 April 2025.
Also arrested was John Bosco Kigundu, treasurer of Kyeihara PDM SACCO in Kasaana Sub-county, Sheema District. He was apprehended in a joint operation involving the State House Anti-Corruption Unit [SH-ACU], the Uganda Police Criminal Investigations Directorate [CID], and the Office of the Director of Public Prosecutions [ODPP] on charges of defrauding PDM beneficiaries.
Kigundu was first arraigned before the Sheema Chief Magistrates Court on April 15, 2025 and remanded until 17 April. He was charged with fraudulently obtaining money by false pretence. Upon reappearance before Chief Magistrate Lucy Kabahuma on Thursday, both suspects were further remanded until April 29, 2025 for continued hearing. Specific amounts of money allegedly defrauded have not yet been disclosed, as investigations are ongoing.
Outside court, Sheema District Commercial Officer Kafurembe Asasira urged public officials not to sabotage government initiatives aimed at improving household incomes.
“I’m not fully aware of today’s court ruling and haven’t involved myself deeply in matters that are still under judicial and police review. However, this case serves as a lesson to anyone who seeks to disrupt vital government programmes intended to lift households from subsistence to a money economy,” Asasira said.
Officials from SH-ACU clarified that the money solicited by the suspects was not part of any official PDM requirement and urged beneficiaries to remain vigilant. They encouraged the public to report any instances of extortion or fraud linked to the initiative.
This case is part of broader anti-corruption efforts by SH-ACU, which is focused on safeguarding the PDM from abuse. The PDM is a government initiative aimed at reducing poverty by empowering communities through access to local financial services, primarily delivered via SACCOs at parish level.
This is not the first instance of arrests linked to PDM misuse. In November 2024, SH-ACU arrested two Sheema district leaders and recovered over Shs 10 million in mismanaged funds. The individuals included district Speaker Robert Nkwemerire, also the LC V Councillor for Masheruka Sub-county, and Robert Matsiko, LC V Councillor for Masheruka Town Council.
They were accused of illegally benefiting from the PDM programme, in violation of presidential directives that prohibit civil servants and political leaders from participating in the scheme.
The PDM aims to transition 39 percent of Uganda’s population from subsistence farming to a money-based economy. To date, each of the country’s 10,594 parishes has received Shs 200 million in phased instalments.
https://thecooperator.news/museveni-announces-plan-to-increase-pdm-funding/
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