Tuesday , May 24 2022
Home / NEWS / Gov’t relaxes requirement to access emyooga cash in banks

Gov’t relaxes requirement to access emyooga cash in banks

Minister of State for Microfinance Haruna Kyeyune Kasolo.

Kampala, Uganda | THE INDEPENDENT | The government has relaxed conditions that require Emyooga Savings and Credit Cooperative Societies to seek recommendations from district commercial officers before they access money on their bank accounts.

In 2020/21, the government released 30 Million Shillings to each of the 18 Emyooga Savings and Credit Cooperative Societies selected per constituency across the country.

However, for any Emyooga SACCO to access the government cash and members’ savings on their bank accounts, the Executive Committee had to seek a recommendation letter from the district commercial officer who determines how much they can withdraw.

But State Minister for Microfinance Haruna Kasolo says that following complaints from the Emyooga SACCO leaders, he has decided to withdraw the requirement with immediate effect.

Kasolo ordered the district commercial officers to write to bank managers informing them that Executive committees can withdraw the money as they wish without necessarily presenting a recommendation letter from their offices.

Kasolo added that the commercial officers will only be required to monitor the performance of the SACCOs.

He warned that the government agencies will arrest Executive committee members in case they misuse the authority and embezzle the funds.

Kasolo also directed that Emyooga SACCOs desist from lending to members above eight percent which is the recommended rate.

The SACCOs are also required to submit monthly reports to Resident District Commissioners, Chief Administrative Officers and local leaders on their performances.

The Emyooga SACCO executive leaders in Luwero district have welcomed the directive saying it will encourage savings and lending among members.

Teddy Babirye, the Secretary of Katikamu North Constituency Market Vendors Emyooga SACCO says that sometimes commercial officers were not readily available to issue recommendation letters and this kept members waiting long to access loans.

She however admitted that some executive members may abuse the authority and embezzle the funds.

Hassan Nsubuga, the Secretary of Katikamu North Constituency Produce Emyooga SACCO says that the bureaucracy had discouraged some members from saving in the SACCOs over lack of full access in case they need it.

Robert Matovu, the chairperson of Katikamu North Constituency Produce Dealers Emyooga SACCO said the directive will save the executive committee members from spending costs on transport when seeking recommendation letters.

The Emyooga programme was introduced to support among others, market vendors, welders, taxi drivers, carpenters, boda-boda riders, women, performing artists and restaurant owners among others who come together in form of savings and credit co-operative societies.

Recently on their monitoring, Members of Parliament discovered that the implementation design of the Emyooga was marred by several inconsistencies and mishaps which crippled the desired outcome.

The Deputy Speaker Anita Among instructed the minister to produce a monthly report and also adopt all concerns and recommendations raised in the different reports of MPs.

*****

URN

Leave a Reply

Your email address will not be published. Required fields are marked *