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MPs call for halt of Micro Finance Support Centre over funds mismanagement

VSLA-Group-SACCO

A SACCO holding a meeting

Members of parliament on the parliamentary committee on public accounts  have recommended the halting of the operation of Micro Finance Support Centre over poor management of the funds allocated to this Centre to lend to the poor people through SACCOs. This after members of parliament on the Public Accounts Committee chaired by Soroti district woman MP Angelina Ossege discovered that micro support centre through the ministry of finance want 7.5 billion shillings written off over bad debts caused by non-recovery  of loans from cooperative societies.
MPs while interfacing with officials from the ministry of finance led by the undersecretary in the ministry of finance Betty Kasimbazi discovered some funds under the microfinance support Centre has been advancing loans to cooperative societies which have failed to repay back. MPs include, the MP for Masaka municipality Mathias Mpuga Nsamba, MP for Ruhinda south Donozia Kahonda, Lwemiyaga county MP Theodore Sekikubo,  Ntongamo municipality MP Gerald Karuhanga and Kiboga East MP Keefa Kiwanuka said that there should be a forensic audit by the Auditor general to establish whether the micro finance support centre is still needed since its funds are grossly abused .

Masindi district woman MP Jalia Bintu and Ruhinda south MP Donozio Kahoonda  noted that some loans were forced on SACCOs without them applying for it and that they also discovered there were some loans advanced to hotels instead of SACCOs. Masaka municipality MP Mathius Mpuuga protested the lending interest rate which range from 9% to 17 % by the micro finance support centre to SACCOs, adding they are high compared to other financial institutions.
The head of finance and Administration John Mwebembezi defended the centre that the abuse was done in the past before his term of office but now there are mechanisms which do not allow releasing loans to beneficiaries with out proper guidelines. The undersecretary in the ministry of finance Betty Kasimabazi asked MPs on the public accounts committee to come up the legislation to promote cooperatives through agricultural projects to stop the issue of giving out funds in terms of loans which in turn are abused.

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