SACCO’S warned on swindling member savings

The chairperson production committee Busia district has cautioned the management of savings and credit cooperatives ( SACCO'S) against swindling their member savings.

Stanley Peter Mouganga said the district will work with the ministry of trade and cooperatives to deregister organizations found fleecing members.

His comments follow reports most of the big SACCO'S in the area mismanaged funds got from the microfinance support center (MSC) in the last financial year.

"We are officially going to ask the ministry to clean up SACCO'S in this district that is not pegged on cooperative society principles," he said.

Mouganga who was speaking to the Cooperator said, there are wrong elements in the district that going out to solicit money from the cooperators under the pretext of SACCO'S but without proper Sacco structures.

He appealed to cooperators to report to the authorities unseemly behaviors by the officials and also do more background research about the organizations before registering with them.

He commended the small SACCO'S that spent the loans well and encouraged the member to promote financial virtues.

He encouraged more residents to register with SACCOS' because of easy access to loans and also commended the big SACCOS' in the district which are performing well.

Concerning savings, he appealed to residents to seek for more information on cooperatives so as to maximize their gains, noting that people want to be members but they don't want to own, save and use SACCO'S.

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