Charles Bwogi
21 October 2007
Kampala — THE Support Uganda Savings and Cooperative Society management has been suspended for contravening the law.
The Registrar of Savings and Credit Cooperative Societies (SACCOs) said in a statement over the weekend that the firm's top manager had also been replaced with a caretaker manager.
The statement explained that the SACCO broke the rules by opening branches when it was still on a 24-month probation.
To open branches, the statement added, required clearance from the registrar.
"Besides opening illegal branches, the SACCO's executive committee turned itself into management and the committee members went ahead and awarded themselves management positions without the consent of the members saving with the SACCO," the statement said.
The malpractices the statement said forced the commissioner for cooperative development to institute an inspection into the management of the SACCO's affairs.
"Using the power entrusted with him in the Cooperative Act, the commissioner instituted an inspection this month which unearthed malpractice in the management of the SACCO.
"He used the same instrument to come up with a caretaker manager to safeguard the savings of the members," the statement said. The old management has been directed to hand over the assets and liabilities of the SACCO to the new caretaker manager.
The statement said members should not panic because the situation was under control.
The registrar's office is mandated with ensuring that SACCO members are not conned.
This comes at the time when the Government is tightening its grip on bogus SACCOs that have in the past ripped their members of millions of shillings.
The trade ministry recently threatened to close SACCOs that take deposits from non-members without clearance from the Registrar of Cooperatives.
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