Trade ministry official cautions SACCOs against multiple borrowing
KAMPALA, March 28, 2024 – Multiple borrowing could soon land rogue members of Savings and Credit Cooperative Organisations [ SACCOs] in jail.
This was said days ago by Moses Magumba, a Senior Cooperative Officer in the Ministry of Trade, Industry and Cooperatives [MITC] while addressing members of Mulago II Cooperative Limited during their annual general meeting [AGM] held at Old Mulago Private Primary School in Kawempe Division.
Magumba issued the warning following the complaint by the cooperative’s General Manager, Lydia Nassiwa that unscrupulous members engaged in multiple borrowing.
She said some of their members have been going to different money lenders using the same collateral, which she said has made their cooperative suffer losses, on top low recovery rates.
“We are faced with a challenge where some of our members have clandestinely been in the nasty habit of moving among money lenders in search of more money which act is an outright breach to our operating standards,” Nassiwa said.
The manager was however optimistic about the steady growth of the membership of the cooperative to 8, 136 currently from 6,130 in 2018, with a current member savings portfolio standing at over Shs 1.1 billion.
She said management plans to enlist the services of a private debt collector to help them recover the money from some members.
According to her, the growth of the cooperative is a testimony that its technical team and board members are performing their mandates well.
However, Magumba in response observed that the government had taken note of the escalating cases of multiple borrowing, saying all culprits shall be identified and effectively arraigned before courts of law for abusing the very terms of agreement on which they engaged while securing the loans.
For her part, Kawempe Division Commercial Officer, Mangeri Nabirye commended the leadership of the cooperative society for the good performance, saying several cooperatives/SACCOs within the division are still facing growth challenges.
She urged MTIC to carry out continuous sensitisation programmes focusing on a positive saving culture, saying this helps financial cooperatives to grow to greater heights.
On her part, Kampala Central Division Commercial Officer, Sarah Namugoya also commended the cooperative for the good performance.
On his part, the incoming Board Chairman, Joshua Ssekandi thanked the members for entrusting the board members with the new mandate of serving them, saying they will work with all stakeholders including MTIC and other cooperative sector stakeholders to help the cooperative to grow further.
Kawempe Division mayor Dr. Emmanuel Sserunjogi who was chief guest said several SACCOs and cooperatives across the country have faced many challenges as a result of the Covid-19 pandemic which forced many to halt operations.
https://thecooperator.news/fsd-uganda-boss-urges-sacco-members-to-pay-loans-in-time/
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