Teachers in Yumbe district have been urged to desist from securing multiple loans from financial institutions and loan sharks.

District chairperson Abdulmutalib Asiku sounded the warning during the World Teacher's Day celebrations on Thursday at Nyoko Primary School in Yumbe district.

According to Asiku, they have noticed with concern that many teachers in the district have secured loans from more than two financial institutions then they get peanut pay as their monthly salaries at the end of every month.

"We all know that the salaries you are getting as teachers are meagre and the things out there demand a lot but multiple loans is not the solution. At least get a loan from one institution preferably the mother bank and struggle to pay than having more than three loans which keep deducting your salaries leaving you with less than shillings 50,000 per month," he said.

Asiku said the little earnings after deductions frustrate the teachers and cause stress which results in poor performance of the teachers at work.

The chairperson for the Uganda National Teacher's Union (UNATU) Yumbe branch, Robert Angoliga, said due to the multiple loans, many teachers have failed to meet the needs of their families causing domestic violence and divorce.

Yumbe LC V chairperson (centre) and other leaders with teachers cutting cake during the celebration of World Teacher's Day at Nyoko primary school in Yumbe district. (Photo by Adam Gule)

He added that many children of the teachers who are victims of multiple loans have dropped out of school because the teachers can't afford to meet the school requirements.

Teachers use academic documents as collateral

Angoliga said a report from the human resources department in the district shows that about five teachers in the district missed the recently carried civil servants' validation exercise because they left their documents with financial institutions as securities for loans.

According to Angoliga, the teachers at the time of the validation exercise had their documents which included the original transcripts, appointment letters, confirmation letters and national identity cards among others with financial institutions over loans they picked and failed to pay.

"Five of our colleagues are likely to be deleted from the payroll because they didn't participate in the recently concluded validation exercise because their documents are not with them. It's very painful, but this is the situation in which some of us are in," he said.

Angoliga blamed the human resources department for signing for people whom they very well know have unpaid loan records in other financial institutions.

Victims turn to drinking

According to Angoliga, they have records of some teachers in the district who have resorted to drinking alcohol in the name of managing stress.

He said the habit has affected the health of many teachers and some passed on as a result.

"Teachers say, they drink alcohol to manage the stress of finance thinking they will dodge the family responsibilities, but many have lost their lives in such practices," he said.

He added, there is an urgent need to have a body in the district to provide psychosocial support to such teachers in order to minimise cases of losing teachers due to too much drinking.

Need for teacher's SACCO

Asiku encouraged the teachers in the district to form a savings and credit co-operative organisation (SACCO) which should bring together all the teachers in the district so that they can get loans among themselves with very low interest.

He said, as a government, they are ready to support initiatives towards forming SACCO for teachers in the district.

"If all of you come together and start saving monthly, what would you be doing at the financial institutions? You would just borrow loans around and develop as a team," Asiku said.

However, according to Angoliga, there are two teachers' SACCOs in the district: Aringa North constituency and Aringa East constituency, but none is doing well because the memberships have been voluntary, yet the financial needs are for all the teachers.

He said for the SACCO to be successful, they need financial literacy for all the teachers because the majority believe SACCOs are for securing loans, yet they needed to be taught savings culture.

Teacher and something

Yumbe district sports officer Swaib Chandiga, who represented the district education officer, said teachers are mirrors for the society.

He encouraged the teachers to establish other income-generating activities which they will probably operate on weekends and evenings after classes so that, they are not so vulnerable in society.

Chandiga said it is shameful if a teacher goes around the community picking money from people and at the end of the month, uses all the salary to pay off debts.

"Establish a small business or agriculture and make sure to earn something to supplement the salary," he said.