Police Exodus SACCO has reassured its members that its operations remain stable and uninterrupted following a High Court ruling that declared it unlawful to compel serving police officers to join the cooperative and have salary deductions made without their consent.
The reassurance comes after the High Court in Kampala ruled that serving Uganda Police officers cannot be forced to join the SACCO, declaring that the automatic enrolment of recruits and salary deductions without their consent violated the constitutional right to freedom of association.
The case was filed by lawyer Steven Kalali, who challenged both the mandatory membership policy and the legality of the SACCO's financial operations.
In the recent ruling, Justice Bonny Isaac Teko also found that the SACCO had been operating financial services without the licence required under the Tier 4 Microfinance Institutions and Money Lenders Act. The court ordered the SACCO to regularise the membership of officers recruited since 2015, complete its licensing process within six months, and allow members wishing to exit to do so without penalty while accessing their savings and accrued dividends.
In a notice issued to members on Thursday, Police Exodus SACCO said it had taken note of concerns arising from the court decision and moved to calm fears among its membership.
"We wish to reassure all our esteemed members that the SACCO remains fully operational and continues to provide services in accordance with its mandate. Members' savings, investments, and all SACCO operations remain secure and continue without interruption," the management said.
The SACCO said it respects the judicial process and is already engaging relevant stakeholders to ensure issues arising from the judgment are addressed in line with the Constitution and Uganda's cooperative laws.
"As a law-abiding cooperative society, Police Exodus SACCO respects the judicial process and is actively engaging the relevant stakeholders to ensure that the matters arising from the ruling are addressed in accordance with the Constitution and the laws governing cooperative societies in Uganda," the statement reads.
According to the management, both the Board and management are closely monitoring the matter and are taking legal and administrative measures to protect the interests of the cooperative and its members.
The SACCO also urged members not to be swayed by unverified information circulating on social media and other informal platforms.
"We therefore urge all members to remain calm, avoid speculation, and refrain from relying on unverified information circulating on social media and other informal channels. Official updates will only be communicated through the SACCO's recognized communication platforms whenever there are significant developments," it said.
Management further said the cooperative has consistently upheld principles of good governance and transparency, expressing confidence that the legal process will ultimately provide clarity on the issues raised by the court.
"Police Exodus SACCO has, over the years, remained committed to sound governance, transparency, and the protection of members' interests. We remain confident that the appropriate legal processes will provide clarity and ensure that the matter is resolved in accordance with the law," the statement added.
The High Court ruling also directed the Registrar of Cooperatives to conduct a comprehensive audit of the SACCO's membership records and financial accounts covering officers recruited from the 2015 intake onwards and report back to court within nine months.
The Attorney General was further ordered to issue guidance to the Uganda Police Force and the SACCO to ensure no officer is enrolled or subjected to salary deductions without documented, free and informed consent.
The court additionally awarded costs of the application to lawyer Steven Kalali, the applicant in the case.
