By Max Patrick Ocaido
PARLIAMENT. The Parliamentarians’ Savings and Credit Cooperative Society Limited (SACCOs) is counting losses amounting to over Shs100m after three MPs passed away without serving their loan.
This was revealed on Friday during the 15th Annual General Meeting held at Parliament Conference Hall that was officially launched by Speaker Rebecca Kadaga under the theme “Cooperation and Economic Transformation through Member driven Societies”.
According to the report presented by the Chairperson of the SACCO, Jalia Bintu (Masindi Woman MP), the death of Cyrus Amodoi, former Toroma County MP, William Beijukye Zinkuratiire, former Ruhama County MP and former Buhaguzi County MP, Tom Kyahurwenda cost the SACCO a total of Shs122,364,207 losses in unpaid loans.
MP Bintu revealed that the SACCO has “written off the following loans for our deceased members.”
Amodoi who died in a motor accident in March 2017 had picked a loan of Shs75,620,690, while Beijukye who succumbed to Hepatitis B in November 2017 owed the SACCO Shs45,032,037. Kyahurwenda owed the SACCO Shs1,711,480 before his death in June 2018.
In her opening remarks, Kadaga rallied members of the SACCO to focus, have purpose and persevere if they are to benefit from this multimillion SACCO.
“How can you borrow not for investment but to spend? There is no certainty in 2021 that you will return to Parliament, so plan like you are not going to come back. Let's plan how much we need to spend and save as much as we can. I encourage members to invest in real estate so that you can also have a house in Kampala,” Kadaga said.
Board Chair, Bintu also announced that the Parliament SACCO Board has reviewed the interest rates effective October 08, 2018 with short term loans (up to 12months) accruing 16% pa, while long term loans (over 12months) will accrue 23% pa from 24%pa. Interest on fixing savings (12months) from 10%pa to 9%pa, interest on fixed savings (24-36months) from 11%pa to 10%pa, interest on fixed savings (over 36months) from 12% to 11%pa and interest on regular savings stays at 6%pa.
However, despite some hiccups, Bintu announced that the SACCO continues to meet all its members’ financial requirements. In this year, the SACCO registered growth in loans from Shs12.3bn to 19.1bn, while savings grew from Shs13.9bn to a whopping Shs23.8bn with shares growing from 1.7bn to Shs2.3bn.