Seven board members of the Amootom Parish SACCO in Okungur Sub County, Kapelebyong District, have been arrested on allegations of extorting over shs1.8 million from beneficiaries of the Parish Development Model (PDM).
The detained members, including the board chairperson, secretary, treasurer, and other committee members, are currently held at Kapelebyong CPS under File Number GEF-003/2024.
Police reports reveal that the suspects admitted to collecting shs30,000 each from multiple beneficiaries under the guise of operational fees.
The extorted funds were allegedly used for personal expenses such as purchasing phones and renting an office for SACCO activities.
"This is a gross violation of the guidelines. These leaders must refund the money to the beneficiaries within a week," stated Resident District Commissioner Tom Otukol.
"They must sit with the Parish development committee to forge ways to refund the money." he added
Otukol expressed his disappointment with the SACCO leaders' actions, citing their ignorance of the established guidelines.
"Such behavior undermines the purpose of the Parish Development Model. SACCO leaders must prioritize the welfare of beneficiaries and adhere strictly to the rules." expressed Otulo
The extortion contravenes Section 3 subsection 3.6 of the PDM user handbook and Section 2.2c of the loans policy, which limit board members to collecting no more than shs5,000 from beneficiaries as loan application fees.
The police are conducting further investigations, and the suspects are expected to face charges soon.