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Minister Kasolo: Gov’t Will Not Compensate Kyotera, Sembabule SACCOs Members For Stolen UGX2.6bn

The State Minister for Micro-finance, Haruna Kyeyune Kasolo, says that his ministry can do nothing to revive the SACCOs that have spent 10 years without operating, adding that they cannot compensate the affected members for the loss.
Haruna Kyeyune Kasolo, the State Minister for Micro-finance, addressing reporters about the defunct microfinances.

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The government will not compensate the more than 15,000 members of Victoria Basin Saving and Microfinance Cooperative Trust Ltd and Kakuuto Microfinance and Taala Ya Mawogola Savings and Credit Cooperative Society (SACCO) in Kyotera and Sembabule districts respectively for the loss of their deposits worth over Shillings 2.6billion.    

The State Minister for Micro-finance, Haruna Kyeyune Kasolo, says that his ministry can do nothing to revive the SACCOs that have spent 10 years without operating, adding that they cannot compensate the affected members for the loss.

//Cue in: “Ezo zimaze emyaka…….         

Cue out:…………..SACCO zona,”//       

The depositors lost their savings between 2011 and 2012 to the directors, managers, employees and some members who have disappeared since. At least more than 12,000 Victoria Microfinance members lost over Shillings 1billion, 5000 members in Kakuuto Micro-finance lost more than Shillings 1bn, while over 5000 members of Taala Ya Mawogola lost more than Shillings 600million.      

The members of the three SACCOs have since appealed to the government to intervene and compensate them for the loss. In 2016, Kasolo directed police to investigate the fraud and recover the funds following the persistent outcry by the disgruntled members. 

Unfortunately, the investigations did not make any headway leaving the affected members stranded. According to Kasolo, the SACCOs became insolvent and closed due to poor management. He explains that from the time he came into office he has made sure that different SACCOs start and succeed.      

//Cue in: “So kakati mukisanja…….       

Cue out:………nasanga zigudde,”//     

Kasolo advised all SACCOs to recruit experienced and honest managers to run them to avoid losing their savings. According to the minister, unchecked defaulting on loans and theft of the funds has consistently crippled the operation of SACCOs in the country. 

About the Emyoga program, Kasolo says the operation to recover the money will officially start this week by arresting people who mismanaged the funds. He noted that they intend to inject more funds in SACCOs that have proficiently utilized the funds to benefit the members.       

Badru Mujuzi, one of the affected members of Victoria Microfinance, says that they never followed up on investigations into the matter. He says that they relied on the minister and police investigations hoping that their money will be recovered but all in vain.

Emmanuel Kabogoza, another depositor in Kakuuto Microfinance appealed to the government to intervene, direct fresh investigations and attach the properties of the managers and employees that took the money.   John Paul Mpalanyi, the Kyotera county MP, says he will have to revisit the matter to see how he can follow up.