Recovery rate for Emyooga funds in Lango Sub-region at 30 percent

LIRA – The loan recovery rate for Emyooga funds in Lango Sub-region currently stands at 30 percent, according to officials responsible for the government programme in the area.

Lango Sub-region received has so far disbursed Shs 13.1 billion into the various Emyooga SACCOs to lend to their groups, even though officials say recovery of the monies form the beneficiaries has become a big challenge.

For instance, officials say the amount of money recovered from the November 2020 disbursement of Emyooga funds is only Shs 4bln, meaning an outstanding loan of Shs 9.1bln given to the Emyooga SACCOs in the region remains uncollected.

Reenie Joyce Alima, the Lango Sub-region Emyooga SACCO coordinator said the recovery rate is low because many groups keep paying the loans and borrow from the revolving fund gain.

“The recovery rate is not good because we have many loans which are overdue,” Alima said, expressing hope that the loans will be paid since the repayment period has been extended to one year.

“The duration of paying back the loans was only four months which did not favour borrowers who run seasonal businesses like produce business. I am glad that H.E [President Museveni] has… has extended the loan repayment period for 12 months,” said Alima.

Alima said monitoring the SACCO groups fully will improve performance in loan recovery.

“I am hopeful that with the continuous monitoring and engagement, the recovery of the outstanding loans can go up to 90 percent,” Alima said.

Maxwell Rwot, the chairperson of Lira Municipality Carpenters SACCO said they are yet to recover Shs 5 million from some of the members who received the loans in 2022.

“Those who borrowed the money in the beginning disturbed claiming the money was free and did not have to pay back,” he said.

Meanwhile, Maxwell Otoo, the loan officer for Apac Municipal Tailor SACCO said they have only recovered Shs 11mln out of the Shs 29mln given out during the fourth disbursement of the Emyooga funds.

“Most of our group members are farmers and this has brought us problems because many people still have their cash crops in the garden. Right now, they can pay the loans,” he said.

“As leaders of the SACCO, we are not relenting, we shall carry out a serious operation very soon to ensure that the money is recovered,” Otoo said.

Lango Sub region has a total of 357 Emyooga SACCOs with 2,649 associations that have benefited from the Emyooga funds.

https://thecooperator.news/emyooga-apac-struggling-to-recover-shs-50mln-from-politicians/

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