The finance ministry says a total of 10,594 savings and credit co-operative organisations (SACCOs) have received shillings 100 million each to work and join the money economy.

The 10,594 are those that the Government targeted to benefit from the Parish Development Model (PDM) programme.

The ministry posted on its X, formerly Twitter, account on Wednesday (March 20, 2024) after its undersecretary and accounting officer, Dr Sengonzi Damulira, appeared before the parliamentary committee on public accounts together with his technical team to respond to issues raised in the Auditor General’s report for the year ended June 30, 2023.

Some of the issues reported in the report which were discussed with the Public Account Committee chaired by Butambala County MP Muwanga Kivumbi include revenue performance (non-tax revenue), the performance of warrants, management of the government salary payroll following the recent audit, as well as funding and absorption of the PDM administrative and revolving funds.

Muhammad Muwanga Kivumbi MP for Butambala County and chairperson PAC Central displays the Ministry of Finance report. (Photo by Maria Wamala)

“An analysis of the payment details by the Auditor General confirmed that the Ministry of Finance released 100% of the budgeted amount of sh1,059.4b meant for 10,594 SACCOs. The Auditor General also confirmed that 10,584 SACCOs received sh100m each,” the ministry said.

Where is the money?

Local government minister Raphael Magyezi told New Vision last year that the PDM money is available on the SACCOs’ accounts in different banks.

“Any beneficiary who has completed the application process and has been appraised by the SACCO loans committee, trained and cleared should have the money paid to his or her bank account or mobile money account without unnecessary delay,” he directed.

He acknowledged that some people have been sent away by the banks because of presenting identification, telephone contacts, and biometric information different from what was captured on the system.

He called upon the SACCO leaders to assist their members to correct the errors, together with the district officers concerned.

During the last general elections, the ruling National Resistance Movement (NRM) party promised that the 2021-2026 term would be for creating wealth, jobs and incomes for all Ugandans.

In its election manifesto, the NRM promised to use the PDM as the strategy to reach the homesteads that are still in the subsistence economy to support them to join the money economy.

There are about 39% of households in subsistence production as per the Uganda Bureau of Statistics’ Household Survey of 2019.

The subsistence economy is defined by the Government as the cashless mode of production which relies mainly on natural resources to provide for the basic needs of the home, for example through hunting, gathering and rudimentary agriculture that has minimal surplus to sell or trade.

President Yoweri Museveni, who is also the NRM national chairman, said that through the PDM, they are going to move the 3.5 million households that are still in subsistence farming to the money economy.