Residents Disband Village SACCO over Leaders' Incompetence

2454 Views Lira, Uganda

In short
They faulted the SACCO leaders including the chairperson Patrick Odongo of operating against the group laws and principles.

Residents of Ngetta Sub County in Lira district have disbanded their village Savings And Credit Cooperative Society over poor management by their leaders.
 
Ngetta SACCO was formed in early 2006 and formally began operation in June 2006.
 
Just late last year a total of 500 shares were sold during a campaign organized by sub county leadership.
 
However, last Friday the scheme was indefinitely closed after a total 100 members were each refunded their initial 25,000 shillings deposit which they used to buy shares.
 
The decision to close the SAACO was taken after members accused its leaders of misusing the group's funds.
The treasurer Jacinto Awio and Chairperson Patrick Odongo were accused of keeping group’s money on their personal accounts, a practice most members declared was against their SAACO rules.
 
Although Odongo strongly denied this to be the case, the decision to close the SAACO by members was upheld.
 
Micro finance Minister of State Caroline Okao and Alebtong district woman MP described the incident as very discouraging for the members who hoped to benefit from the SAACO.
 
MP Okao attributed the failure of many SACCO groups in the country to financial illiteracy in the community and absence of Micro financial Regulatory Authority.
 
Alutkot in Oyam district, Akokoro in Apac, Bar in Lira, and Amolatar Elder's SACCOs are the best performing groups in the region.