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New SACCO Loan Requirements Demoralise Police Officers

Speaking to Uganda Radio Network on anonymity condition, policemen and women across the ranks described the new requirements one must meet in order to access the loan as tough and discouraging. Speaking to Uganda Radio Network on anonymity condition, policemen and women across the ranks described the new requirements one must meet in order to access a loan as tough and discouraging.
Police Officer Question New SACCO Guidelines
Police officers have decried the new requirements for accessing loans from the force’s Exodus Savings and Credit Cooperative commonly known as Exodus SACCO.

Speaking to Uganda Radio Network on anonymity condition, policemen and women across the ranks described the new requirements one must meet in order to access a loan as tough and discouraging.

Headed by Senior Commissioner of Police –SCP Wilson Omoding, the Exodus SACCO management, in its new conditions issued on September 30, members must write to the Inspector General of Police through their unit commanders which was not the case previously.

“The following conditions to be met to qualify for loan: The loan applicant must be a member of the SACCO; Introductory letter, application to IGP through the unit commander; Attach copies of the warrant card and national ID,” reads the statement listing the new conditions.

Several police officers who spoke to URN described the condition as intended to disable them to access their money. Many said the previous procedures of writing to SACCO management and presenting two officers of their ranks as recommenders were enough and there was no need to set up new conditions.

“I started applying for a loan in 2018 up to date I have never been successful; now these new conditions will totally keep us away from getting loans," an officer lamented. "Sincerely, when will my unit commander or IGP get time to look through into all our loan requests?”

THe Police SACCO has 32,000 members and its total assets stands at 22.5 billion shillings. Net assets equal 7.5 billion shillings, share capital 4.8 billion shillings, retained earns stands at 1.5 billion while members’ savings total to 9.6 billion shillings. Exodus SACCO has been in the news for allegedly mismanaging police officers’ savings.

 

Another condition police officers have queried is retaining 20% savings of loanable amount to act as collateral security. “20 percent savings of the loanable amount will act as collateral security," says the notice. "Attach a copy of the bank statement, preferably two recent months of your salary account. One should have orbe  willing to purchase shares worth 10 percent,” the statement further reads.

Efforts to speak to SCP Wilson Omoding, in order to explain what motivated the new conditions were futile as he did not respond to URN calls. Nevertheless, the SACCO leadership has increased loanable amount from 25 to 50 million shillings.

SCP Omoding's team has registered some commendable achievements. For example, they have saved police officers from trekking miles to Naguru police headquarters to access loans or their savings. The SACCO has set up branches in Mbale, Moroto, Gulu, Lira, Arua, Hoima, Fortportal, Mbarara and Masaka.

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