An audit report on the operations of Mbarara Central Market Vendors Savings Cooperative Society has found that part of the money donated by President Museveni can not be traced. The SACCO received sixty million shillings from the president as a donation for startup capital.
According to an external audit report, over 39 of the 60 million shillings could not be traced or accounted for by those running it.
The report from the 2022/23 to the end of the 2023/24 financial year was presented to the members and shareholders of Mbarara Central Market Vendors SACCO on Wednesday.
It said the SACCO lost 4 million in the 2023/2024 financial year and currently has a loan portfolio of 91 million shillings.
While presenting the Audit report Peter Kayebe, the external auditor, said that the missing 39 million shillings was never documented and the statements he received from the bank showed that the SACCo had spent more than a year without receiving any savings from its members and others paying back their loans.
He accused the manager, Hope Kyarikunda, of refusing to provide him with all the necessary documents and asked the Resident City Commissioner to force her to bring the documents.
He also accused the former SACCO board of neglecting their responsibilities as outlined in the Cooperatives Act, thus failing the SACCO operations.
He insisted that the former Board of the Sacco should be held accountable for recovering the missing funds.
John Byaruhaga, the Commercial Officer of Mbarara City South Division, accused the former board chaired by Nyombi Muhammed of mismanaging the sacco.
He said that SACCO had no money in its account with the commercial bank, and a significant amount of money was unaccounted for.
Polly Katwire, the Assistant Resident City Commissioner in Mbarara, gave the Chairperson of the SACCO and his Board a two-week deadline to meet with all the defaulters and establish convenient repayment methods. They are also required to create a file and submit it to the Commissioner’s office for special investigations.
He warned those suspected of being behind the missing money to return it to the SACCO before being arrested.
He said the government is willing to give more money to the SACCO if it is doing well. “If the government finds that your SACCO is not performing well, they will not provide additional funding,” added Katwire.
Simpson Mugabi, the current SACCO Chairman, said that the SACCO was facing challenges due to a shortage of staff noting that the manager also acts as the cashier.
Mugabi added that the manager is also demanding over 1 million shillings in arrears from the Sacco, which she demands from March to July.
He also said that Sacco does not have a work plan and budget to be followed in its operations which required the approval of the general meeting.
Nyombi Muhammad, the Chairperson of the old Sacco leadership, accused the external auditor of auditing the Sacco without involving the Sacco staff. He also criticized the auditor, narrating that he is not accountable.
Mbarara Central Market SACCO was registered in 2011 and currently has about 600 members and a total savings of about 400 million shillings.
-URN
