By Aggrey Twesigye
The State House Anti-Corruption Unit has launched an investigation into Mbarara Central Market SACCO Limited following allegations of theft and mismanagement of funds, including a presidential grant of Shs 65 million meant to support market vendors.
The probe comes just days before NRM presidential candidate Yoweri Museveni campaigned in Mbarara City, reigniting concerns about accountability for government development funds in the region.
For years, SACCO members have petitioned city authorities and relevant government offices for an audit, claiming they lost both personal savings and government funds due to mismanagement by SACCO leaders.
Government money unaccounted for now totals Shs 101.2 million comprising an initial Shs 62.2 million grant released in 2011 and an additional Shs 39 million disbursed in 2020 under the Emyooga programme.
Registered in 2011, the SACCO had over 500 members by 2023 but has since become dormant due to severe financial shortages. An external audit for the 2022/2023 financial year revealed that Shs 91.1 million is tied up in non-performing loans dating back to 2014.
Former leaders including ex-chairperson Muhammad Nyombi and former manager Hope Kyokunda were previously implicated in the mismanagement of Shs 39.4 million.
A team from the State House Anti-Corruption Unit, led by Principal Legal Officer Samuel Ssebikari, has begun scrutinising financial records with the aim of recovering the missing government funds. He encouraged SACCO members who lost savings to submit statements to aid the investigation.
Ssebikari emphasized that government cannot consider extending new support until the fate of previous funds is fully established.
During a meeting earlier this week, market vendors insisted that the inquiry should extend beyond the presidential grant.
Emmanuel Muhumuza, Chairperson of the Mbarara Central Market Vendors’ Association, revealed the existence of a second SACCO with a similar name, allegedly presented to the President’s Office without the knowledge of most vendors.
Ssebikari pledged to investigate both entities in collaboration with the Registrar of Cooperatives before any additional funds are released.
Hajjat Sarah Nandawula, Town Clerk of Mbarara City South Division, promised to form and lead a team to address leadership challenges within the SACCO. She noted that harmonising—or possibly merging the two SACCOs may be necessary and should align with existing frameworks such as the Parish Development Model (PDM).
As of December 31, 2023, Mbarara Central Market SACCO reported a turnover of Shs 142.7 million, share capital of Shs 21.66 million, net profit of Shs 119.9 million, total savings of Shs 22.7 million, a loan portfolio of Shs 91.1 million, and a membership exceeding 500 vendors.
