State house targets ghost SACCOs in anti-corruption crackdown
This effort comes after an emergency meeting held on November 15, 2024, at the State Lodge in Nakasero, where senior government officials gathered to address irregularities that threaten the initiative's success.
The State House Anti-Corruption Unit (SHACU) has announced a comprehensive operation to root out ghost Savings and Credit Cooperative Organizations (SACCOs) and tackle widespread misuse of Emyooga funds.
This effort comes after an emergency meeting held on November 15, 2024, at the State Lodge in Nakasero, where senior government officials gathered to address irregularities that threaten the initiative’s success.
The high-level meeting brought together Resident District Commissioners (RDCs), Resident City Commissioners (RCCs), National Resistance Movement (NRM) Division Chairpersons, and district security officers. These leaders were tasked with identifying loopholes in the system, tracking funds, and restoring public trust in the initiative.
The Emyooga program, launched in 2019 as a Presidential Initiative on Wealth and Job Creation, aims to transform local livelihoods through financial support for enterprises in sectors like trade, agriculture, and creative arts. However, reports of ghost SACCOs, inactive groups, and misappropriation of funds have raised concerns over the program’s sustainability.
Senior Presidential Adviser on Political Affairs, Moses Byaruhanga, announced a full-scale investigation into these irregularities. He directed the Microfinance Support Centre (MSC) to work closely with district leaders and security agencies to assess fund utilization and verify the existence of SACCOs.
“Every SACCO must account for the funds received, and we will not tolerate those who exploit this initiative for personal gain,” Byaruhanga declared.
The Extent of Mismanagement
While Emyooga funds are intended to provide UGX 30 million as seed capital and an additional UGX 20 million per SACCO, audits have revealed significant gaps in accountability:
Central Division: Allocated UGX 7.04 billion for 234 SACCOs, with an additional UGX 940 million for 47 SACCOs. However, 63 SACCOs have been identified as non-existent.
Makindye Division: Received UGX 2.17 billion for 66 SACCOs, but many remain inactive or poorly managed.
Nakawa Division: Allocated UGX 1.72 billion for 56 SACCOs, but most are ghost entities.
Kawempe Division: UGX 2.98 billion disbursed to 103 SACCOs, with only 10 reported as active.
Rubaga Division: Received UGX 3.11 billion for 207 SACCOs, with several cases of mismanagement
Assistant RCC for Kampala City, Hajjat Fatuma Katongole, called for stringent accountability measures. She emphasized the importance of improving traceability in fund distribution and strengthening SACCO structures to maximize the program’s impact.
“Accountability mechanisms must be reinforced to ensure funds reach the intended beneficiaries and bring transformative results to our communities,” she said.
Byaruhanga reiterated the government’s resolve to empower communities through transparent financial support, adding that those found guilty of mismanagement would face legal action.
