Swaibu Makumbi, one of the SACCO delegates from Masaka Municipality, says the micro finance institution is being rundown by a clique of people within the governing board, who are operating with a lot of impunity.
The future of Masaka Elder’s Savings and Credit Cooperative
Society Limited hangs in balance because of unresolved management disputes threatening
its stability. The SACCO, which started in 2006, is meant to
attend to the emerging financial needs of elderly persons in greater Masaka sub
However, the Sacco is trapped in recurring challenges that
are threatening its existence. Swaibu Makumbi, one of the SACCO
delegates from Masaka Municipality, says the microfinance institution is being
rundown by a clique of people within the governing board, who are operating
with a lot of impunity.
singles out Margret Nabaggala Ntambaazi, the
board chairperson for turning the SACCO into a personal project, where she
dictates policies hence abusing the rationale for its establishment.
He explains that the SACCO has also lost huge sums of money
because of chronic financial mismanagement by the board. According to Makumbi,
the latest special audit report that unearthed financial loss of Shillings 400
million has discouraged some members and withdraw their trust.
The financial audit was conducted by Felbright and Company
Auditors covering the period between 2017 and July 2019. It found that the
Sacco is embroiled in serious governance weaknesses that have created room for
fraud and financial mismanagement.
Rosemary Nantumbwe, one of the SACCO board members, says the board
has deliberately failed to enforce the audit report recommendations that
include recovery of all debts and suspension of persons implicated for fraud as
a way of saving the institutions from collapsing.
She says they are suspicious that the board chairperson could
be a direct beneficiary of the financial scam, which threatens the SACCO.
//Cue in: “bafulumya ssente……
out; ……akakiiko kaveeko.”//
Andrew Katongole, another member of the SACCO is apparently
afraid of continuing to associate with the institution because of the
irregularities that hinder its effective operations.
However, Margret Nabaggala Nantambazi, the SACCO board
chairperson, says despite the underlying the challenges cited, the institution
is still financially stable, adding that they are doing all it takes to realign
its management to save it. She also denies any wrong
arguing that she inherited some of the challenges from the previous board.
//Cue in: “he explained……
out; …..be streamlined.’’//
in: “omulembe gwetwasikira……
out; …….ffe tukyaliwo.”//
Several Saccos in Masaka have closed because of similar challenges. They
include among others SHE SACCO, Masaka Muslim
SACCO, Butonde Micro-Saving Institution, Gatsby Microfinance, Masaka United
Taxi Drivers and Operators SACCO.
Joseph Mugerwa, the Masaka Municipal Commercial Officer, says
that many SACCOs have collapsed largely to political interference, which
affects their management.