Minister warns SACCOs against lavish spending
Mar 12, 2009
SAVINGS and Credit Co-operatives (SACCOs) have been advised to avoid lavish spending. The Luweero Triangle state minister, Nyombi Tembo, said the survival of SACCOs depended on the ability of members to minimise expenditure.
By Frederick Kiwanuka
SAVINGS and Credit Co-operatives (SACCOs) have been advised to avoid lavish spending. The Luweero Triangle state minister, Nyombi Tembo, said the survival of SACCOs depended on the ability of members to minimise expenditure.
“I get disturbed when some SACCOs managers prepare sumptuous lunches for me. SACCO funds are not meant for entertaining visitors,†he said while launching the Makulubita SACCO in Luweero district.
The minister also advised members to desist from borrowing and instead endeavour to save.
He told them to borrow only as a last resort.
“You should not borrow sh20,000 to buy seeds, when you have a goat worth sh80,000. It is better to sell the goat, buy the seeds and keep the balance,†he said.
Tembo appealed to the managers to include more women on their loan portfolio so as to realise maximum recovery rates.
“It has been established that women borrowers usually pay back promptly,†he said.
The minister dissuaded the members from rushing to buy a communal tractor, as they had proposed, saying the project was not viable. He pledged sh5m and a computer for them.
The Makulubita SACCO chairman, Wasswa Mukasa, had earlier on said they had 677 members comprising both men and women.
SAVINGS and Credit Co-operatives (SACCOs) have been advised to avoid lavish spending. The Luweero Triangle state minister, Nyombi Tembo, said the survival of SACCOs depended on the ability of members to minimise expenditure.
“I get disturbed when some SACCOs managers prepare sumptuous lunches for me. SACCO funds are not meant for entertaining visitors,†he said while launching the Makulubita SACCO in Luweero district.
The minister also advised members to desist from borrowing and instead endeavour to save.
He told them to borrow only as a last resort.
“You should not borrow sh20,000 to buy seeds, when you have a goat worth sh80,000. It is better to sell the goat, buy the seeds and keep the balance,†he said.
Tembo appealed to the managers to include more women on their loan portfolio so as to realise maximum recovery rates.
“It has been established that women borrowers usually pay back promptly,†he said.
The minister dissuaded the members from rushing to buy a communal tractor, as they had proposed, saying the project was not viable. He pledged sh5m and a computer for them.
The Makulubita SACCO chairman, Wasswa Mukasa, had earlier on said they had 677 members comprising both men and women.