Bududa Saccos in debt

Bududa. The Bududa Resident District Commissioner has ordered the district cooperative officer to institute an audit into five Saccos following the loss of at least Shs500 million of savings and indebtedness.
While meeting delegates of Bududa Yetana Dairy Cooperative Credit Organisation last week, Mr James Shilaku said he was overwhelmed by complaints from clients who cannot access their savings.
Bududa, Manjiya, Bukigai, Bubita and Bulucheke Saccos have since closed down and their managers left. No audit has been carried out to ascertain the loss.
“I will arrest all the managers and other employees of these Saccos to explain where they took client’s savings. The Saccos are heavily indebted and those in charge cannot explain the fracas,” Mr Shilaku said.
The district’s cooperative officer, Mr Patrick Masaba, said the indebtedness came as a result of heavy borrowing by members who did not pay back and consequently, the entities could not sustain transactions.
Asked why he had not carried out an audit, Mr Masaba said some members threatened and warned him against being involved.
Mr Stephen Wabusani, the district commercial officer, said he provided guidance to the directors and managers about poor management and warned that if it was not checked, the institutions would soon plunge into debts.


SOURCE: Daily Monitor

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