Reports from different regional Parliamentary caucuses have unanimously asked the government to allow Savings and Credits Cooperative Societies (SACCOs) to withdraw their funds so that the Parish Development Model (PDM) can be implemented fully.
In their reports following a two-week PDM monitoring recess in February, the lawmakers indicated that although most of the SACCOs were successfully formed and have received initial funds, they have not gained access to the money.
Speaker Anita Among had sent the Members of Parliament on recess to monitor the utilization of the PDM funds after over Shs1.9 trillion had been released by the government to 9538 SACCOs out of the 10594 that are supposed to benefit.
In the last financial year, each of the successful Parish SACCOs received just Shs17m out of the supposed Shs100m as per the PDM masterplan.
PDM, President Yoweri Museveni’s signature poverty reduction program in the current political term was designed to benefit 100 households at every parish in a year with each beneficiary household supposed to borrow Shs1m to boost agricultural production.
However, the MPs in their reports that are yet to be debated by Parliament discovered that amongst the many challenges affecting the start of the program is the non utilization of funds which remain on the SACCO accounts. This, they reported, is because of the everchanging implementation guidelines.
“The funds had overstayed on the SACCOs’ accounts without being accessed by beneficiaries. Therefore, we recommend that the SACCOs be allowed to access the PDM funds since the SACCO accounts continue attracting monthly bank charges” reads part of a report made by MPs from the Rwenzori sub-region.
This finding was also collaborated by the reports from West Nile, Karamoja, Tooro and Bugisu sub-region that this reporter has recently accessed. Parliament is yet to debate the reports from the regional caucuses though the item has been on the Order Paper for the last two weeks.
Among other challenges to the PDM, the MPs indicated that the program may not go on well because of the poor mindset across the country where most people seeking to benefit think that the seed capital should not be loaned to them because it was a campaign pledge.
In Bugisu sub-region, the MPs reported that lack of office space for the Parish Chiefs who are the technical implementers of the program at the parish level do not have office space while in other regions like Karamoja, a need for means of transport for them was identified
The MPs also want the government to release all the funds to ensure that by June, each SACCO should have a total of Shs117m to help all the selected beneficiary households in two financial years. In the first year of implementation, the government only released Shs17m to each SACCO instead of the much-anticipated Shs100m while in the current financial year, most SACCOs have received in their Accounts at least Shs50m out of the planned Shs100m.
While each beneficiary household is supposed to borrow Shs1m to invest in production, the MPs believe that this money will not be enough since the prices of agricultural inputs continue to shoot up.
In Karamoja sub-region, the MPs said that the data collection and storing gadgets for all the parishes had not yet procured something that rendered the Data Clerks idle.
Although the beneficiaries are supposed to manage their cash at the parish level through the SACCOs, in West Nile, it has been reported that most of the Executive Committees of the SACCOs have been lacking the required competences in financial management.
The West Nile MPs also stated that; “there is lack of harmonization and integration of the PDM program with other government programs and there are higher levels of illiteracy among the beneficiaries hence failure to draw business plans”.
The fears by the MPs are collaborating the queries raised by Auditor General John Muwanaga in his report to Parliament on the government books of accounts for the year ending June 30, 2022. The Auditor General found out that the PDM had not started well and highlighted a number of bottlenecks.
In his report, the Auditor General revealed that within the first year of its implementation, Shs594.7M for PDM could not be accounted for by the various local governments.
Muwanga also reported that there were challenges that include mismanagement of funds, and forgery of academic documents among the parish chiefs recruited to oversee the poverty alleviation program.
“PDM Funds amounting to Shs594.7m in five Local Governments relating to administrative costs, staff costs and gadgets and tools were not adequately supported with the requisite documentation.” Read part of the report.
The Auditor General also noted that there were irregularities in the recruitment of Parish Chiefs giving an example of Butaleja Districts where 15 out of the 39 parish chiefs recruited had forged academic documents, resulting in a financial loss of Shs12m in the salaries already spent on them.
However, on March 16, 2023, President Museveni allayed the fears of the beneficiaries that the PDM money might be swept back to the treasury if not spent by the SACCOs by end of the financial year as provided for in the Public Finance Management Act (PFMA), 2015.
Museveni who told MPs about the challenges of corruption by the technical officers implementing PDM in the Districts, guided that the money should not be touched until the beneficiaries have become ready to utilize it.
“Therefore, in my view, if the money is not used this year let us keep it. Don’t divert it so that the fund builds up. Because you remember this money is a nucleus for a parish bank. If they want, members of the Sacco, once they are convinced, they can start saving and adding on. So, don’t talk of taking it back. Keep it aside until people will be able to use it” the President insisted.
It is not clear whether the government will have to first cause an amendment to the Public Finance Management Act, 2015 in order for the parish Saccos to retain the unspent money by the end of the financial year.
Section 17 (2) of the Public Finance Management Act, 2015 provides that; a vote that does not expend money that was appropriated to the vote for the financial year shall at the close of the financial year, repay the money to the Consolidated Fund.
In a related development, the President on Wednesday March 22, directed the State House Anti-Corruption Unit to swing into action and investigate the alleged extortionist tendencies of technical staff implementing PDM in Acholi Sub-region.
Museveni who has recently told Parliament that he was shocked on his start of the zonal tours when people of Acholi told him in February that they were facing challenges with PDM, wants those sabotaging the program arrested.
While meeting a group of local leaders from Acholi on Wednesday, Museveni asked Brig Henry Isoke, the Head of the State House Anti-Corruption Unit, to follow up on the reports that were presented by the Acholi leaders.
“Brig Isoke, you should check with the PDM Secretariat about the instructions given in forming the Parish SACCOs. What are they telling the people so that you compare with what is on ground? Also, check this report of the extension workers” Museveni said.
The President who was also informed that the PDM was affected by corruption in Amuru District, said that the National Resistance Movement (NRM) government which has always been in direct contact with the people will bring to book all those involved.
“For the corruption in Amuru, those corrupt people are stupid and we are going to arrest them. This money came and it will be traced, that’s why started my upcountry tour and you’re helping me. I will go to other places also because the people are there. We are going to arrest them properly, we have got some rooms at Luzira (prison), there is some good accommodation there” he added.
Museveni recently rallied the MPs to help him popularize PDM by preaching social-economic transformation to the population because by virtue of their work, they are supposed to remain in constant touch with the communities.
