SACCO leaders urged to embrace technology to safeguard members’ savings
IBANDA, August 25, 2025 — Leaders of Savings and Credit Cooperative Organisations [SACCOs] have been urged to adopt modern financial technology systems to strengthen transparency and prevent fraud in cooperative societies.
This call was made during the days ago Annual General Meeting [AGM] of Kagongo Rural Development SACCO Limited [KARDET] in Ibanda district, where delegates unanimously re-elected the board that had guided the institution through a major financial scandal.
Chaired by Prof. Rev. Fr. Peter Kanyandago, the AGM saw the re-election of Dr Amooti Kaguna as Chairperson, alongside board members Dr Damazo Baguma, Kizito Mwebaze, Rev. Paul Mutume, and Cleophas Love.
“The board has faced challenges but has done commendable work to stabilise the SACCO,” said Kanyandago.
Kaguna thanked members for their continued trust, pledging renewed commitment to revitalise KARDET. He explained the delay in holding the AGM, saying it was due to the need for clearance from the Registrar of Cooperatives following a fraud case that nearly crippled the SACCO.
Fraud Scandal and Conviction
Between 2017 and 2021, Nicholas Kutesa, then SACCO Manager and Accountant, embezzled Shs200,714,223. The scandal led to the SACCO’s temporary closure in December 2021.
Kaguna informed members that Kutesa was convicted by the Anti-Corruption Court in Kampala and sentenced to one year and seven months in Luzira Prison. In addition to the prison term, Kutesa was ordered to refund the entire stolen amount and banned from holding public office for 10 years.
“This sentence should serve as a warning to all SACCO managers across the country,” Kaguna said.
Court records from Criminal Case No. 0049 of 2023 show that Kutesa misappropriated funds through unauthorised share liquidations, inflated fixed deposit interest rates, and unbanked cash. Eight prosecution witnesses, including SACCO officials and financial experts, presented damning evidence.
Despite denying the charges and blaming system migration errors, the court ruled that the prosecution had proved its case beyond reasonable doubt.
Renewed focus on oversight and technology
In light of the fraud, Kaguna stressed the importance of embracing technology to track all financial transactions and prevent similar cases in future.
“This SACCO must be protected. Without strict oversight and transparency, we risk becoming bankrupt again,” he warned.
Ibanda Resident District Commissioner [RDC] Godfrey Mbetegyerize echoed the call for digital vigilance, urging SACCO boards to closely monitor electronic transactions and key signatories.
As part of KARDET’s recovery, delegates appointed former accountant Editor Kirabo as acting manager to oversee operations while the SACCO recruits qualified personnel.
Background
KARDET was founded by 61 Catholics in 2011 and officially registered in 2013. It currently has 2,582 members, a share capital of Shs 215.63 million, a loan portfolio of Shs 31.9 million, and total savings of Shs 412 million.
https://thecooperator.news/sacco-leaders-convene-to-drive-innovation-and-inclusive-finance/
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