Joshua Nahamya
MBARARA CITY
Former Mbarara Central Market Vendors’ SACCO Chairman, Nyombi Muhammad, and the manager/cashier Hope Kyokunda are implicated in the alleged mismanagement of SACCO’s funds amounting to over Shs 39.4 million.
The officials were implicated in the 2022/23 external audit report during the special general assembly held at Mbarara Central Market.
According to the financial position statement presented by Daniel Kayebe of Mugabi and Mawanda CPA Associates, showed that for the last four years, Mbarara central market vendors’ SACCO has been operating in losses.
Kayebe also presented that a total of about Shs 39.4mln is unaccounted for. “I have read to you the remaining missing money is Shs 39,461,037 which is not accounted for and which has no documentation explaining its whereabouts. And we are requesting those who are concerned to explain to us where that money went”
He added that a principal loan of about Shs 91.1mln is stuck in the loan portfolio saying that members are not willing to pay. “Much as there is an unaccounted funds, members also have money which totals to Shs 91,120,4700 which does not even include the interest that you need to pay to enable the Sacco to operate,” Kayebe said
Simpson Mugabi, Chairman Mbarara Central Market Vendors’ SACCO reporting the challenges he has faced eversince he assumed office. Joshua Nahamya
Auditor’s observation
We found that the expenditure is more than the total capital because loans were not being recovered which means that the interest would not be realized, Kayebe noted.
He added “There was scarcity in the supply of money because it is from the savings that the management would use to give loans as part of the documentary evidence. And this scarcity was brought by Sacco’s dormancy and failure to recover the loans”.
He experienced multiple inconsistencies in identifying how much SACCO money was in circulation because the money was spent in cash without going to the bank.
“The biggest risk this SACCO has is remaining with the money in cash. Money would come and stay at the SACCO office and later be disbursed to other members without going to the bank which becomes so hard to track the money lost when there are no financial statements. Here the treasurer and the board didn’t do their mandate to show the SACCO the right direction,” Kayebe said
He said that “the fact that the SACCO’s bank accounts were not receiving money, they went into a negative because of bank charge deductions”.
“You have an account in GTB bank and another one in KCB bank but the one in KCB bank reflected zero balance and GTB account had only Shs 127,887.” Kayebe said
Auditor’s recommendation
The auditor challenged the old board to harmonize with the new board if the market SACCO is to move forward.
“The manager was not cooperative. Even the mediation between the auditors and the manager who was in office on a daily basis did not take place. She even undermined the powers of the auditors because we engaged her in a meeting but we never got the guidance of the manager. Therefore without the support of the former management and board trust me you will not resolve the impulse that is taking place in this SACCO,” Kayebe noted
He also encouraged the new board to seek guidance and expertise from the technical team to be able to run the SACCO duties effectively.
“Let us have the technical people to advise the management and the board because the management has not harmonised with the board and without the technical guidance, the two will continue to haunt each other and the SACCO will not be in existence anymore.” Kayebe said
On his part, John Byaruhanga, Senior Commercial Officer, Mbarara City South Division, claimed that the uncounted funds could be more than what was read to the members thus challenging the auditors to investigate more.
“You are telling us about the uncounted funds but you are not telling us how you came to that report and where that money is because you are not showing us whether it was spent unknowingly or stolen by some individuals deliberately. And why don’t you show us how to get rid of the missing funds.” Byaruhanga noted
Nyombi Muhammad, the former chairman of Mbarara Central market vendors’ SACCO, also accused the auditor of having produced a half-baked audit report because of not consulting the SACCO manager/cashier whom she claimed to know everything concerning the SACCO business.
“All the records are supposed to be gotten from the manager of the SACCO, but I ask myself how the auditor went to the SACCO and audited whatever he did without the presence of the manager. It would be prudent if he had the SACCO management to investigate where that missing money went” Muhammad explained
The accused chairman also refuted the allegations about the mismanagement of the missing 39.4mln, attributing it to the manager whom he says is a full-time employee of SACCO.
Chairman Simpson and Assistant RCC at log head over defaulters in the Market SACCO
“I was not a principal signatory; I was just the supervisor of the board and the staff. And I was not a full time employ at the SACCO I think the cashier and the manager should be questioned about the missing funds not the chairman then” Muhammad noted
Polly Katwire, Assistant Resident City Commissioner [ARCC] Mbarara, confirmed that the president’s office will lodge an independent audit to investigate the missing government funds totaling Shs 101,200,000.
“We are aware that at the SACCO’s inception [2011], President Museveni gave you a grant of Shs 62,200,000 and in 2020, you received Emyooga money of 39 mln when you add up all together that is Shs 101.2mln and we are asking ourselves where that money is,” Katwire said
He said that it is very bad for a few people to receive the government money, eat it, and fail their colleagues who would have also borrowed the money from the SACCO to develop themselves.
“The government gave Shs 62mln to all the markets in the country and asked vendors to use that money to pay and give the profits to other colleagues also to develop but a few individuals just distributed the money amongst themselves until it gets over. For instance the chairperson loans’ committee took Shs 12mln alone and for that one we are going to arrest him because he was not supposed to distribute the money to himself alone denying the other members to get,” Katwire noted
He further urged the defaulters to pay back the government funds, saying some of it was received under the Emyooga Programme.
“You see, the president’s money was not meant for individuals to steal, it was a revolving fund to develop all the vendors within their SACCO. So I pray that whoever has that money should pay or else you risk to be arrested,” Katwire explained
Some the loan defaulters are; Nissan Katurebe [12.15 mln], Kato Abbas [4.1 mln], Donozio Kibanda [3.52mln], Rashid Rwanyanga [Shs 3.5mln, Wilson Spencer [3.48 mln], Kellen Kobuyonjo [2.6 mln], Emmanuel Muhumuza [1.3], Moses Mutabazi [1mln], Mwine Toti [1.7], Hadijah Nambogo [1.2mln], Biryomumaisho [2.12mln], Robert Mugume [1.2 mln], Edije Kokushaba [1.2mln], Richard Nshabaomwe [1.9mln] among others.
Katwire also asked the general manager to provide a report showing how much money she found in the office while assuming office, how much is in loans, and the amount of money she left in the office while allegedly going on sick leave.
“From the office of the president, we shall cause our own audit because we want to establish whether the former board went with some of the money and also see what the new board found in office,” he said
The Assistant RCC further warned the current market association leadership to desist from internal fights with the former leadership which is also affecting the growth of the market SACCO.
“Another thing that I found in this market are internal fights arising from the two factions yet the new market act does not provide room for vendor leaderships. I think here it is the council leadership that has failed to show you direction. According to the Act, you are supposed to have section representatives who report to the market master but not the association leadership that is causing confusion in the market,” Katwire explained
He added that “Mbarara city council failed to sensitise the vendors on how to utilise the SACCO funds”.
“The Council has totally failed to help you because after receiving that money you were not sensitised on how to use it. Some people thought it was free money to eat, of which it was not the case.” Katwire said
Simpson Mugabi, Current SACCO Chairman reported that “While the new board assumed office we only found a total of Shs 680,000 in the safe and Shs 170,000 in the bank”.
He also said that Sacco had no budget and work plan since its inception which has failed to facilitate their development for the last 13 years.
Mbarara Central Market SACCO was registered in 2011, and by December 31, 2023, it had a turnover of Shs 142.7mln [142,743,505], total share capital of Shs 21.65mln [21,658,800], net profit of Shs 119.9mln [119,993,505], total savings of 22.7mln [22,750,000], loan portfolio of Shs 91.1mln [91,124,700] and membership of over 500 people.
