Police’s oldest sacco grows savings to shs16bn

The Police Savings Association Limited (PSAL) which is the oldest Savings and Credit Cooperative Society in the force has seen its savings grow to shs16 billion.

Speaking during the sacco’s Annual General Meeting at the Police headquarters in Nagurur on Friday,  retired AIGP Edward Ochom said despite the trials and tribulations, they have managed to grow the sacco.

“At the time we took over the administration ten years ago, the association was ssh1.5 billion net worth but we are happy and proud to state that we are now shs16 billion net worth as of today,”Ochom told the sacco members.

He explained that the annual profits for the sacco have risen from shs229 million in 2013/2014 to shs1.2 billion this year, noting that they offer loans to members at only 13% interest which is lower than any financial institution whereas the sacco has assets in Kansanga, Lweza and Munyonyo.

“Our systems have been automated and our members are given their savings and loan portfolios quarterly. The association now puts aside shs400 million per month to cater for peak loan period for schools, tertiary institutions and universities compared to the previous shs250 million,”Ochom said.

He revealed that the sacco can now offer up to shs100 million to individual members  in salary loans.

Challenges

Ochom said member loan balance stands at shs8 billion compared to members’ subscriptions at only shs5 billion, noting that the total debt to the sacco stands at shs184 billion.

“It is becoming increasingly difficult to accommodate big loans from members whose saalries were enhanced since their total savings and monthly savings are very low. We also have problems in recovery of commercial loans from some members,” he said.

He also complained of what he termed as indiscipline by some members of the sacco who after getting loans go to other financial institutions to get more loans and the sacco codes are terminated.

“Recovery of loans from retired police officers is a problem since they are not on payroll.”

Speaking during the AGM, the Inspector General of Police, John Martins Okoth Ochola said he was happy the force’s oldest sacco has lived up to the aspirations of its founders.

“Iam impressed to state that PSAL has lived to this dream and its financial status shows that collective saving effort is the way forward in navigating tricky situations, meeting financial obligations, and building wealth.  By saving money, our officers can avoid unnecessary debts and relieves stress at work,”Ochola said.

The IGP however challenged management not to rely only on savings but to also make proper investments that will ensure profits for members.

“The task at hand, therefore, is for this Association to sensitize its members on how to convert the collective savings into collective investment in manageable projects that can be easily supervised by their family members,”Ochola said.

“Similarly, the association should come up with more innovative and responsive solutions, and reach out more effectively to all Police officers especially those at the lower ranks that grapple with challenges of accommodation and financial hardships in paying school fees for their children.”

The Police Savings Association Limited started in 1989 as a welfare association for police officers and it was mandatory for every member of the force from the Inspector General of Police to the lowest rank to be part of it.

The scheme however developed some issues after grumbling from junior officers and in 2000, the Justice Julia Sebutinde Commission of inquiry into corruption in Police recommended that membership should be made voluntary.

In 2001, Ochola, who was the then Assistant Commissioner of Police in charge of Legal Affairs, recommended that the association be dissolved and members reapply to join voluntarily.

Consequently, membership dropped from14600 to only 700 members but later the number rose again to 2271 currently.