By Spy Uganda
The Management of the Uganda Police Exodus SAACO are up in arms with veteran journalist Andrew Mwenda, over a story he recently published on his Online platform, ‘Independent Magazine’, indicating that Exodus SACCO, which is run and managed by the police, is indebted to the tune of over Shs3Bn, and that several cops who saved their money with the SACCO cannot access it.
In a 360° complete rebuttal to Mwenda’s story, Police refuted all the ‘allegations’, asserting that they have issued out loans to police officers worth over Shs3.5Bn and COVID-19 relief funds amounting to over Shs912M to policemen and women who save with the SACCO.
Although they initially deny servicing a Sh3Bn debt, according to a statement issued by the Management of Exodus SACCO on Monday June 22, 2020, they acknowledge that they have scheduled repayment of a loan worth Shs3Bn.
Here is the Statement from the Management of Exodus SACCO, signed by SCP Wilson Omoding Otuna, the Board chairperson Exodus SACCO;
“The management of the Exodus Sacco would like to clarify on an online story that was published by the “Independent.co.ug” on the 12/06/2020, under the title “Police SACCO Management extends ban on loan acquisition”.
The writer further adds that “Several Police Officers had tried to get loans but in vain” And that “Police management led by the SACCO chairperson, Wilson Omoding had extended the ban, which had ended in March, to sort out issues regarding a 3 billion shillings debt”.
We would like to dismiss the story as false, malicious and misleading. We wish to put the facts right as follows;
That there is no ban on loan acquisition as alleged by the writer. The SACCO has been extending loans and shall continue doing so to members who are eligible. It is on record that since the beginning of the year, 2020, the SACCO has disbursed loans worth Ugx 3,335,570,000 to 686 members. This includes assistance loans worth Ugx 912,800,000 to 128 members who have been financially impacted on by the coronavirus. The safety of our members remains a priority during this period of the pandemic. Therefore, our loan section remains open and continues to receive applications from interested members.
Regarding our savings, the SACCO gives incentives of interest. Therefore, holders are strongly encouraged to continue boosting their savings to enable them buy a plot, a house or even plan for their retirement.
Tentatively all withdrawals are pending new rules after the SACCO contracted consultants who have developed a policy manual. It has already been reviewed by the SACCO Board and forwarded to the Police Advisory committee (PAC) for their final approval. We are fast tracking the process and as soon as the withdrawal rules are adopted by PAC, members will immediately start accessing the savings on their individual accounts. We are hopeful that the Policy will be approved soon for members to carry out withdrawals within the Policy provisions.
We are also happy to inform all members that Police management has clearly scheduled the payment of 3 billion shillings that they owe the SACCO. Although this has no serious effect on our operations, it will greatly improve our liquidity ratio.
We must all remember that the SACCO faced challenges of financial impropriety which are a subject of investigation. The investigators and auditors are reviewing all summary reports and tracing back the accounting procedures. This has enabled us to adopt accounting procedures that are accurate and transparent to avoid similar occurrences.
The SACCO reminds all members to observe the health and safety guidelines on coronavirus. We also want them to continue getting facts right to avoid putting into disrepute the brand we are trying to build.
We pledge to continue working with all media houses to promote the SACCO business model in a credible manner. Our values of transparency, Accountability, Customer service, Respect for customers, Quality service, Professionalism and integrity still remain.”
Kadaga Wants Police SACCO Audited
It should be noted the despite the melee above, the Speaker of Parliament Hon. Rebecca Alitwala Kadaga in March this year called for a forensic audit of the financial operations of the Police SACCO.
The Speaker revealed a few months ago that she would direct the Auditor General to carry out a forensic audit into the mismanagement of the Police Exodus Sacco.
Kadaga revealed this during a meeting she held together with MPs; Elijah Okupa (FDC, Kasilo), James Waluswaka (NRM, Bunyole West) and Gafa Mbwatekamwa (NRM, Kasambya County) with the Police Joint Chief of Staff, Brig Jack Bakasumba, Asst. Commissioner of Police, Abubaker Ziwedde and other members of the new management of the Exodus SACCO.
The Speaker met the team to get an update on reports of alleged mismanagement of funds of the SACCO.
In December of 2019, MPs alleged that the SACCO’s books of accounts had disappeared and that several police officers were denied access to their funds raising fears among savers.
It was also reported that since the inception of the SACCO, savers have never got dividends despite revenues increasing every year.
The Speaker said that about Shs5 billion appropriated by Parliament to clear the outstanding government debt in the Police’s Exodus SACCO had not been properly utilised.
She added that out of this, Shs1.9 billion was still outstanding to suppliers who had been asked to pay withholding tax.
“These suppliers who are still demanding money from you for close to five years are complaining about charging them six per cent off their earnings in withholding tax which was never part of the agreement,” Kadaga said during the meeting.
But Bakasumba said that “The money was used to pay some of the suppliers of hot meals to the Uganda Police during the presidential and parliamentary elections of 2016.”
He added that “The Shs5 billion was part of Shs30 billion supposed to be paid by the Ministry of Finance in January 2020 to the SACCO to pay the remaining suppliers.”
Bakasumba also noted that “We are willing to check the record again to find out whoever has not been paid and follow up on all these issues.”
“We concede that these people should have been informed but they need to appreciate the fact that taxes have to be paid. URA has written to us reminding us that withholding tax needs to be deducted from the pay out,” Ziwedde said.
MP Okupa, however, said that it was unfair for the SACCO officials to expect suppliers to accept a tax they were never warned about.
Kadaga advised the SACCO officials to write to URA explaining the circumstances under which the suppliers were contracted and ask for waiver of the tax.
She also asked whether there was an ongoing audit of the mismanagement of funds.
Ziwedde said that the forensic investigation had not been launched because the Police was still investigating the matter.
However, to date the Management of Exodus SACCO are yet to report back to Parliament about the findings of their investigation.
