The Parish Development Model (PDM) Secretariat has directed all local government entities across the country to halt the disbursement of the current batch of Shs50 million PDM funds until governance challenges at Sacco level are addressed.
Julius Kapwepwe, the technical advisor on the PDM, said the decision is aimed at eliminating “mischief” within the old Sacco leadership structures and strengthening transparency and accountability in the implementation of the programme.
“All the local government units in Uganda have been reliably put on notice to halt the disbursement of the current batch of PDM resources because we are at the time of changing leadership at Sacco level,” Kapwepwe said.
Since its inception, PDM has faced operational challenges, including limited financial literacy among beneficiaries, allegations of corruption, political influence in beneficiary selection, impersonation, and poor mindset towards revolving funds.
Government recently released additional funds to verified parish Saccos to support the transition of subsistence households into the money economy. However, the Secretariat says disbursement will only resume once new Sacco leadership structures are in place to ensure accountability.
“We are dealing away with some of the old administrators who had issues, including extortion within their communities, and now we are putting in place new leaders to spearhead the operations of these Saccos,” he added.
Speaking during an assessment of the PDM programme in Mitooma District, Kapwepwe said the Secretariat could not risk continuing with systems where outdated leadership structures still control funds, warning that this could create opportunities for mismanagement.
He added that where proper systems have been put in place, beneficiaries are receiving funds and being properly oriented on how to use them productively.
“We are very sure that where we have already cleaned up the system, money is being received by rightful beneficiaries who have been duly oriented about PDM,” he noted.
The directive comes at a time when several districts are struggling to recover disbursed PDM funds from beneficiaries.
In Mitooma District, for example, Shs 27.5 billion has so far been disbursed, but only Shs 20 million has been recovered. Officials also report that about 80 beneficiaries died before repayment.
“Yes, some beneficiaries died and others used PDM as a strategy of extorting money from the community,” said Danstone Mugume, the District Commercial Officer.
Mugume added that while some beneficiaries used the funds productively, others treated the money as a political reward, making recovery difficult.
Mitooma District Chief Administrative Officer Masereka Asuma said the programme is generally on track, noting that many beneficiaries have invested in small businesses, boda boda transport, and coffee farming.
He, however, acknowledged concerns that the initial Shs1 million per beneficiary was insufficient for some enterprises, prompting calls for increased support.
“If someone is saying that money was not enough, it means this person used the money correctly,” he said, adding that the focus should now shift to value addition and market access.
Relatedly, in Isingiro District, authorities have also halted PDM disbursement over cases of impersonation and corruption linked to the release of Shs100 million per parish.
“Some leaders impersonate others and award themselves money when in actual sense these people do not exist in the village. In other words, we have ghost beneficiaries in the PDM project here,” said Isingiro District LCV Chairperson Aaron Turahi.
Turahi said district officials have launched field visits to verify beneficiaries and identify cases of fraud, warning that those involved in mismanagement will be held accountable.
“What we know now is the amount of money we have disbursed as a district and we have the list of beneficiaries. We are going to the field to identify these people, and if we do not find them, those responsible will be arrested,” he said.
