MBARARA CITY, December 3, 2025 – The State House Anti-Corruption Unit [SHACU] is carrying out an investigation into the Mbarara Central Market SACCO Limited following allegations of theft and mismanagement of funds, including a presidential grant of Shs 65 million meant to support market vendors.
The probe began just days before President Yoweri Museveni, the NRM presidential flag bearer, campaigned in Mbarara City, reigniting concerns over accountability for government development funds disbursed across the region.
History of mismanagement
For years, SACCO members have appealed to city authorities and relevant government bodies for a forensic audit, claiming they lost both personal savings and government grants due to mismanagement of the SACCO by leaders.
The total missing government funds disbursed to the SACCO stand at Shs 101.2mln, comprising an initial Shs 62.2mln grant released in 2011 and an additional Shs 39mln disbursed in 2020 under the Emyooga programme.
Registered in 2011, the SACCO had grown to over 500 members by 2023. However, it has become dormant due to acute financial shortages. An external audit for the 2022/2023 financial year revealed that over Shs 91.1mln remains tied up in non-performing loans dating back to 2014.
Former SACCO leaders, including former Chairperson Muhammad Nyombi and Manager Hope Kyokunda, were previously implicated in the mismanagement of Shs 39.4mln.
SHACU opens criminal file
A team from SHACU, led by Principal Legal Officer Samuel Ssebikari, has officially begun scrutinising the SACCO’s financial records with the aim of recovering the missing government funds.
“The audit report shows that you received a total of Shs 65 million from the government. We have opened a criminal file to arrest everyone who misappropriated the money that His Excellency, the President [Museveni], gave you,” Ssebikari said.
He encouraged SACCO members who lost savings to provide statements. “Those who saved money in the SACCO should come forward so we can take statements. We shall also leave you with the anti-corruption toll-free number so that anyone with information can reach us,” he added.
Ssebikari stressed that before the President can extend further support, government must first establish what happened to the previous funds.
Vendors demand action on savings and leadership
During the meeting, market vendors insisted that the investigation should cover more than just the presidential grant.
“I have heard you talking about the President’s money, but the SACCO had almost 600 members. We need to know where our personal savings went,” said vendor Rodgers Betunga.
Other members, including Florence Kangwangye and Phiona Komugisha, expressed distrust in the SACCO leadership and proposed that government give funds directly to individuals.
“We are saying, why don’t you give us this money as individuals rather than putting it in the SACCO for thieves to steal it?” Kangwangye remarked.
Discovery of a second SACCO
Emmanuel Muhumuza, Chairperson of the Mbarara Central Market Vendors’ Association, revealed the discovery of a second SACCO with a similar name that had reportedly been presented to the President’s Office without the knowledge of most market vendors.
“Our SACCO is called Mbarara Central Market Vendors’ SACCO Limited. So, we are asking, where did the Mbarara Central Market Vendors’ Savings and Credit Cooperative Limited come from? This also needs to be investigated,” Muhumuza said.
Ssebikari pledged to investigate both entities with the Registrar of Cooperatives before any further government funds are released.
“What we are going to do is to investigate both SACCOs to establish how they were formed and then update you so you know the truth of the matter,” he said.
Plans to reconstitute leadership
Hajjat Sarah Nandawula, Town Clerk of Mbarara City South Division, promised to form and lead a team to address the SACCO’s leadership issues. She suggested that harmonising or merging the SACCOs might be necessary and should align with frameworks such as the Parish Development Model [PDM].
“The President supports associations and SACCOs, not individuals. So, I want you to organise your SACCO so that you can also access loans at low interest rates to help you develop,” she noted.
Background
Mbarara Central Market SACCO, registered in 2011, reported by December 31, 2023 a turnover of Shs 142.7mln, share capital of Shs 21.66mln, net profit of Shs 119.9mln, total savings of Shs 22.7mln, a loan portfolio of Shs 91.1mln, and a membership exceeding 500 vendors.
https://thecooperator.news/pdm-shacu-to-probe-officials-over-ghost-enterprise-groups/
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