Peter Nyanzi
28 January 2008
Kampala — The Head of Delegation of the European Commission to Uganda, has urged the government to enact a law and an independent regulatory body by June to oversee the development and operations of Savings and Credit Cooperative Organisations (Saccos) in the country.
Ambassador Vincent De Visscher said the Act is necessary as it would guarantee financial monitoring of the operations of Saccos to a proper framework hence building confidence among members.
"Saccos are the only financial institution in Uganda that are not properly regulated," he observed.
A press release from the EU on Friday said he was speaking at the handing over of assets worth Shs300 million to the State Minister for Microfinance Gen. Caleb Akandwanako as a contribution by the European Commission to the implementation of the National Policy to develop Saccos in the country.
Hundreds of Saccos have mushroomed across the country since the government announced that the Bonna Bagaggawale (Prosperity for All) funds would be channelled through them.
Complaints
However, there have been numerous complaints over the manner the unregulated manners Saccos were operating and hence defrauding people members of their money.
Some of the bosses of the Saccos have been arrested by Police following the complaints.
The statement quoted General Saleh saying that the government had given him up to the end of March to fast track the Saccos Act and table it in Parliament.
The assets handed over included 21 fully equipped computers with printers, five all terrain vehicles, office equipment and furniture as well as training equipment.
The assets formerly belonged to the two and a half years EU-funded Support to Feasible Financial Institutions' Capacity building Efforts (Suffice) project, which wound up last December.
The EU has been supporting the Micro Finance sector in Uganda, starting with the micro projects programme that was restructured in 1999 leading to the formulation of the Suffice I and II projects, which had a total budget of about 6 million Euros (Shs15.5 billion).
Gen. Akandwanho said government would subsequently hand over the assets to the Uganda Cooperative Savings and Credit Cooperative Union, which has been designated by the government to take a lead in the development of Saccos.
Be the first to Write a Comment!
Copyright © 2008 The Monitor. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
