Over Shs 39 million out of the Shs 60 million recently donated by President Yoweri Museveni to Mbarara Central Market Vendors Savings Cooperative Society is missing, an external audit reveals.
Museveni donated the money to the Sacco as startup capital for nearly its 600 members who had a total savings of about Shs 400 million.
The audit report from FY 2022/23 to 2023/24 was presented to the members and shareholders of the Sacco on Wednesday. It said the Sacco lost Shs 4 million in FY 2023/24 and currently has a loan portfolio of Shs 91 million.
While presenting the audit report Peter Kayebe, the external auditor, said that the missing Shs 39 million was never documented and the statements he received from the bank showed that the Sacco had spent more than a year without receiving any savings or loan repayments from its members.
He accused the sacco manager, Hope Kyarikunda, of refusing to provide him with all the necessary accountability documents and asked the resident city commissioner (RCC) to compel her to account for the funds. He also accused the former Sacco board of neglecting their responsibilities as outlined in the Cooperatives Societies Act.
Kayebe insisted that the former board of the Sacco should be held accountable for mismanagement and failing to recover the missing funds. John Byaruhaga, the commercial officer of Mbarara City South Division, accused the former board chaired by Muhammed Nyombi of mismanaging the Sacco.
He said that Sacco currently has no money in its account with the commercial bank, and a significant amount of money remains unaccounted for. Polly Katwire, assistant resident city commissioner in Mbarara, gave the chairperson of the Sacco and his board a two-week ultimatum to meet with all the defaulters and establish a viable repayment plan.
Simpson Mugabi, the current Sacco chairman, highlighted the Sacco’s operational challenges, including a severe staff shortage. He noted that the manager, who also acts as the cashier, demands over Shs 1 million in salary arrears from March to July. Mugabi also pointed out that the Sacco lacks a formal work plan and budget, both of which require approval from the general assembly.
He also said that Sacco does not have a work plan and budget to be followed in its operations which required the approval of the general meeting. Nyombi Muhammed, the former chairperson accused the external auditor of auditing the Sacco without involving the Sacco staff.
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