SACCOs bag sh1b in PDM revamp 

Government, through the ministry of finance, planning and economic development (MoFPED) has capitalized SACCOs countrywide with up to sh1,058,500,000,000, to enable them extend credit facilities to members under the Paris Development Model (PDM). 

Ramathan Ggoobi, the permanent secretary, ministry of finance, while unveiling the quarter two (Q2) cash releases to Government ministries, departments, agencies said disbursements from the SACCO accounts to beneficiaries now stand at 63%. 

“As at 30th June 2023, all verified 10,585 SACCOs were capitalized with sh100m each,” he announced during a press conference held at the ministry headquarters, last week. 

He directed Chief Administrative Officers (CAOs) to ensure that all funds are disbursed 100% by the end of October so that PDM beneficiaries can take advantage of the rainy season. 

Ggoobi said it has come to Government attention that some beneficiaries have diverted PDM funds to buy household items, engage in sports betting and other ineligible expenditure.  

“The district leadership and all offices responsible for PDM monitoring are urged to ensure that beneficiaries utilise the funds for the intended purpose, and that they have   National   IDs,” he said, adding that this will enable them to ensure that they are all properly registered on the PDM Information System. 

“This will help us eliminate risks of multiple borrowing and ease tracking of all beneficiaries. It will also bring to a stop issues of extortion and bribe seeking from PDM beneficiaries and change of lists by replacing eligible beneficiaries with ineligible ones. These have been widespread,” he said. 

Ggoobi further directed that all CAOs to ensure that the communities are sensitized that the Parish Revolving Fund and associated processes are free of charge and that perpetrators of these vices are halted and apprehended. “Delays in disbursement of funds by commercial banks have also been reported. In this regard the government is working on a mobile money solution to address this,” he said, adding that new banking arrangements will also be communicated soon to ease access of funds to beneficiaries that are far from banking infrastructure. 

He commended several districts and Urban Authorities that have disbursed more than 90% of the funds and have fully utilised the PDM system. 

“The star performers include districts such as Kisoro DLG, Kiboga DLG, Buyende DLG, Mbarara City, Rwampara DLG and Kwania DLG. Others include Tororo DLG, Pallisa DLG, Nansana MC, Butebo DLG, Kiryandongo DLG, Butaleja DLG, Ngora DLG, Isingiro DLG, Arua City, Kakumiro DLG, Kumi DLG, Kasese DLG and Hoima DLG.” 

The PDM is a multi-sectoral method for creating socioeconomic transformation by moving the 39% of Ugandan households locked in the subsistence economy into the money economy, with the parish/ward serving as the epicenter for development.

Leave a Reply

Your email address will not be published. Required fields are marked *