Govt cautions Cooperatives Groups Against Multiple borrowing 

By Elijah Khisa

The government has expressed deep concern over the increasing cases of multiple borrowing by some rogue members among community SACCOs and Cooperatives saying jail awaits culprits.

The remarks of lamentations have been made by the senior cooperative officer in the registrar’s office in the ministry of trade, industry and cooperatives Magumba Moses while addressing members of the Mulago 11 Cooperative Ltd during their annual general meeting held at Old Mulago private primary school in Kawempe division.

Magumba’s outbursts stemmed from the main performance report read out earlier by the Mulago11 Cooperative Ltd. General manager Nassiwa Lydia who lamented how some unscrupulous members had been engaged in clandestine multiple borrowing acts through moving from one lender to another using the same collateral documents.

‘Nassiwa told the meeting that some of their members with a heart of bad intention had been moving among several money lenders using the same collateral which incident led to outright financial loss to the Cooperative.

‘We are faced with a challenge were some of our members have clandestinely been in the nasty habit of moving among money lenders in search of more money which act is an outright breach to our set code of professional operating standards that must be discouraged’ lamented Nassiwa.

She was however optimistic about the steady growth of their membership portfolio which reportedly grew from 6,130 in 2018 to 8,136 currently with a current member savings portfolio standing at over 1.1bn/= saying they are set to enlist the services of an independent debt collector to help them recover the funds still stuck among some members.

She attributed the growth as testimony that their board’s technical guidance and leadership was strict and performing its regulatory mandates.

Magumba in response observed that the government had taken note of the escalating cases of multiple borrowing saying all culprits shall be identified and effectively arraigned before courts of law for abusing the very terms of agreement on which they engaged while securing the loans saying it was outright theft.

The Kawempe division cooperatives officer Nabirye Mangeri congratulated the leadership of Coop for posting a healthy performance growth saying several Coops and SACCOs within the division are still facing growth challenges which they are trying to offer technical guidance in a bid to avert a total collapse trend.

She called on her mother ministry of trade, industry and cooperatives to carry out continuous sensitization programs for the members about a positive saving culture for the effective growth of the coops.

The Kampala central division cooperative officer Namugoya Sarah said she was equally satisfied by the promising performance report for this coop saying she had personally carried out an audit for the coop.

The incoming board chairman Ssekandi Joshua congratulated the members for entrusting them with the new mandate of serving them saying they will work with all stakeholders including the mother ministry and other sector players to ensure that the coop growth trends are boosted for a bright future.  

The division mayor Dr. Emmanuel Serunjogi who was chief guest said several SACCOs and Coops across the country have been faced with many negative growth challenges as a result of the Covid-19 pandemic which forced many to close shop as most members abandoned the savings business and retired to do other private work.

He congratulated the coop leadership as led by board chairman Ssekandi on the policy side and Nassiwa Lydia on the  technical side   for doing a good job saying he would also enroll as a life member.