The minister of state Hon Fredrick Gume has warned managers and leaders of SACCOs against mismanagement of funds. He said that more members will be attracted if funds are not mismanaged. Gume revealed that Bugisu Coop Union (BCU) collapsed due to poor accountability and the lack of transparency among the leaders.
“As government, we nolonger want to hear cases of cooperative members losing money to managers AND LEADERS through mismanagement of members’ savings. To be a manager or a leader in any SACCOs, you will now be required to have security in the bank worth the money you are going to handle in the SACCOs”, Gume said.
"I want every Ugandan to belong to a financial institution of some sort. This business of keeping money under the mattress should stop. SACCOs are the nearest (to what) many people in villages have to financial institutions," he explained.
Finance Minister Matia Kasaija has explained why Savings and Credit Cooperative Organization (SACCOs) have been exempted from paying tax on their incomes effective July 1—for ten years.
“I want every Ugandan to belong to a financial institution of some sort. This business of keeping money under the mattress should stop. SACCOs are the nearest (to what) many people in villages have as financial institutions,” he explained.
Speaking at a post 2017/18 budget dialogue organized by the Uganda Revenue Authority on Monday in Kampala, Kasaija said with more Ugandans keeping their money in formal settings, the economy will benefit in the long run.
“When you keep money under the bed, it is not available for multiplication. I want money to come to financial institutions so it is used for increased productive work.”
Government has challenged farmers to strengthen their savings and credit cooperative societies (SACCOs) instead of crying for the revival of the cooperative bank.
The state minister for cooperatives, Fredrick Gume Ngobi says farmers through their SACCOs can decide the better interest rates which is not so different with having the cooperative bank.
His remarks follow calls by many Ugandans, especially farmers, that government revives cooperative banks so that it is easy to get a loan at a low interest rate compared to other commercial banks.
However Ngobi says that government is working hard with the Uganda Coperative Alliance to ensure that the SACCOs are strengthened.
Getrude Achariot Abunyang, a fruit farmer in Omodoi sub-county in Katakwi district, argues that reviving the cooperative bank is also relevant even with the presence of SACCOs.
From: New Vision