Gov't to enact law against SACCOs money theft

By Prossy Nandudu

Government is in the process of enacting a law that that will punish those found guilty of stealing people’s savings through the Savings and Credit Schemes (SACCOS).
 
The warning was contained in the President Yoweri Museveni's speech read by the minister of state for Industry and Technology, James Shinyabulo Mutende, at the opening of Buyanja SACCO in Rukungiri district.
 

“I have been informed of corrupt individuals who are taking advantage of such a good thought-out Government programme to defraud the population of their savings, something that bears a negative effect on the development of the country,” said Museveni.


Museveni said that once the new law is put in place, it will make it impossible for anybody or group of people to defraud people of their money through SACCOs without being intercepted.

“Apart from providing credit to the people engaged in commercial production projects, SACCOs are useful in building a savings culture among the population, which is a strong component in the social- economic development of any society,” said Museveni.
 

He also noted that the culture of paying back borrowed money to financial institutions is on the rise and called on the managers of Buyanja SACCO to always teach their customers before disbursing loans that they can ably pay back.

“There are people in our society who enjoy borrowing but never pay attention when time for paying back comes. This has resulted in the failure of many SACCOs, credit institutions and in some instances borrowers losing their assets”, said the President.
 

He said prudent financial management practices such as transparency and accountability are very important especially on the part of management, if SACCOs are to achieve the aim for which we started them. 
 

The president offered UGX 30M to the SACCO and encouraged its leadership to seek knowledge and wisdom from successful SACCOs for greater achievements. 
 

The people of Rukungiri asked ministry of trade to consider establishing an industrial park in the district to help them add value to their products especially in the diary sector.
 

They offered the president a shield with his picture as a token of appreciation for his support.
The shield was handed over to Hon. James Mutende.

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