April 12, 2024

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Depositors Defrauded by Former Sacco Management to be compensated by Kyaggwe County

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The new leadership of Kyaggwe County in Mukono district is overwhelmed the depositors defrauded by its former Sacco management. Close to 2000, depositors lost their savings in ‘Kyaggwe County Sacco’, which closed two years ago because of mismanagement.    

The group had grown its savings to over Shillings 100 million in a period of three years. Elijah Bogeere Lubanga Mulembya, the Kyaggwe County Head, says that a huge number of complainants has overwhelmed them ever since they declared plans of revamping the Sacco.

  According to Lubanga, they have directed the former Sacco Manager, Josephine Namatovu to present the necessary information to guide them to avoid past mistakes.   

Moses kyeyune, the Kyaggwe County General Secretary notes that they have so far received over 100 people claiming to have lost their savings in the defunct Sacco. He says that they have asked them to back their claim with evidence so that they devise means of sorting them out.

The former Sacco Manager, Josephine Namatovu could not be reached for comment on the matter, as her known mobile numbers could not go through. Kiwanuka Kagiri, one of the former Sacco members says that he lost Shillings 80, 000 that he saved three months ahead of the closure of the Sacco. 

He has advised the management of the Sacco to register it under the Kingdom Sacco ‘Ssuubilyo Zambogo Sacco’ for proper monitoring and accountability.  According to the TIER 4 Microfinance and Money Lenders Regulations (2020), a Sacco is required to renew its membership seven months before the expiry date. 

In case of closure over mismanagement and handling of office, the Sacco can apply for a new certificate of operation that can be granted upon fulfilment of the required credentials including capital, total assets and deposits.

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