Park Yard SACCO stops giving loans
Sep 13, 2011
The uncertainty about the vendors’ continued operation in the Park Yard market has forced their SACCO, the Kampala United Park Yard Cooperative Savings and Credit Society, to suspend giving out loans to members.
By Eddie Ssejjoba
The uncertainty about the vendors’ continued operation in the Park Yard market has forced their SACCO, the Kampala United Park Yard Cooperative Savings and Credit Society, to suspend giving out loans to members.
The SACCO manager, Moses Pserait, said some members wanted to get loans and re-establish themselves elsewhere because their stay in the market was not guaranteed.
He said the management was conscious about giving out loans since many issues, including the continued existence of the Park Yard market, had not been cleared by Kampala City Council Authorities (KCCA).
“We have halted giving out loans to members since their stay here is still not clear,†he said.
He explained that the SACCO used stalls and the goods of members as security, but after the fire, management remained with only their savings as collateral.
“We are in a dilemma. KCCA has not given a clear statement about the future of this market yet we have pending applications for loans. We slowed down the process to study the situation,†Pserait said.
The management said some members started making false claims after the market caught fire and some documents were lost. The SACCO has 2310 members.
The SACCO chairman, Charles Lubega, said they were still waiting for the sh1b President’s pledge to boost the SACCO.
“We operate on a sh1b loan from the Central Bank and members’ savings,†he said.
The uncertainty about the vendors’ continued operation in the Park Yard market has forced their SACCO, the Kampala United Park Yard Cooperative Savings and Credit Society, to suspend giving out loans to members.
The SACCO manager, Moses Pserait, said some members wanted to get loans and re-establish themselves elsewhere because their stay in the market was not guaranteed.
He said the management was conscious about giving out loans since many issues, including the continued existence of the Park Yard market, had not been cleared by Kampala City Council Authorities (KCCA).
“We have halted giving out loans to members since their stay here is still not clear,†he said.
He explained that the SACCO used stalls and the goods of members as security, but after the fire, management remained with only their savings as collateral.
“We are in a dilemma. KCCA has not given a clear statement about the future of this market yet we have pending applications for loans. We slowed down the process to study the situation,†Pserait said.
The management said some members started making false claims after the market caught fire and some documents were lost. The SACCO has 2310 members.
The SACCO chairman, Charles Lubega, said they were still waiting for the sh1b President’s pledge to boost the SACCO.
“We operate on a sh1b loan from the Central Bank and members’ savings,†he said.