The Public Accounts Committee (PAC) of Parliament has said it has discovered that there is alot of rigidity among top managers of the Microfinance Support Centre (MSC) in the transfer of Teacher’s SACCO funds for its operation.
This has prompted the committee to issue summons to managers of the Micro Finance Support Centre to explain why they have refused to hand over 7 billion shillings to teachers SACCO.
The Education Ministry officials led by the Permanent Secretary, Fred Kakooza, had appeared before the Parliament Public Accounts Committee (PAC) to answer audit queries raised in the Auditor General’s report for the financial year 2015/16.
In the financial year 2013/2014 financial year, government pledged 25 billion shillings for the teachers SACCO, which funds were meant to be contributed in 5 years, aimed at improving teachers’ welfare.
A total of 9.3 billion shillings was disbursed to Microfinance in the financial year 2014/2015.
In August 2015, Government took a policy shift over complaints from teachers on how their funds were being managed, demanding to have the monies be channeled through the teachers SACCO.
Microfinance Support Center had issued out 2 billion shillings, and the two bodies agreed to have the financial institution to continue managing the loaned funds, but remit 7.6 billion shillings back to the Sacco.
MPS on the committee discovered that to date the Micro Finance Support Centre has refused to remit the monies to the Teachers SACCO, leaving the two embroiled in a fierce battle.
The Auditor General Report pointed fingers at Microfinance has failed to provide accounts and record of service, leaving uncertainty on how the funds have been utilized.
Angelina Osegge, the committee chairperson put the Ministry of Education bosses to task to explain why the Memorandum of Understanding signed between the two bodies still exists.
The Ministry of Education officials led by the ministry’s permanent secretary Fred Kakooza officials told Parliament that despite repeated communications to have Microfinance remit the money to the Teachers SACCO, the entity has refused to heed to the request.
The undersecretary in the ministry of education, Aggrey Kibenge, explained that the memorandum of understanding had provisions of termination, but when they sought advice from the Solicitor General the consequences were that Microfinance Support Centre had already disbursed money they had identified and terminating the contract would present difficulties in collecting..
Ossege who is also the Soroti district Woman MP said that the disbursed funds should have been recovered three years down the road because the memorandum of understanding provided for the teachers paying back the monies within three year.
In response, the Ministry said that terminating the memorandum of understanding would have affected the operations of Microfinance.
North County Elly Elias Asiku Koboko wondered how terminating the contract would have affected the operations of Microfinance yet the money was meant for teachers.
Ossege noted that there is money lying idle in the Microfinance Support Centre that has been abused and stubbornly refusing to put it where it belongs.
Masaka Municipality Member of Parliament Mathias Mpugga demanded the Microfinance support centre officials summoned to come and explain why they are holding onto teachers’ funds illegally.
