SACCOS run away with money

The Micro Finance Support Centre (MFSC) is on the verge of losing over Shs 668 million following failure for by some Saccos to pay back the money they borrowed.

Godfrey Mangeni, the senior zonal manager at the centre, noted that despite the fact that they have tried very much to train people before lending them money, it seems they have failed to understand how they should use the money.

The mandate of Micro finance support centre is to provide affordable credit and business development services to Saccos, producer cooperatives, microfinance institutions, village savings and loans associations, and small and medium enterprises.

Mangeni said the biggest defaulters are people from the city.

“Kampala people thought that the money wasn’t supposed to be refunded despite that fact that we briefed them, others thought they can’t be traced," he said.

Mangeni said that currently, the institution is engaged in running battles with some Sacco leaders who disappeared with the money without even lending it to the members.

Some of the Saccos on the run include St Andrews Sacco for Owino market which was led by  Denis Kiryowa. It borrowed Shs 20 million last year only to pay back only 9 million.

Park Yard Sacco defaulted Shs 634 million, Usafi Sacco Shs 8 million and a group of army veterans have not paid back Shs 15 million.

“All these people run always and the information we are getting is that they didn’t give any member money. It is mostly the chairman and the secretary who took that money," Mangeni said.