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Scandal: Nakawa Division MSC,Banks Under Investigation Over Mismanagement Of UGX 1.6 Bn Emyooga Funds

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The Nakawa Division Microfinance Support Center[ez-toc] and various banks are under scrutiny for allegedly collaborating with certain individuals to embezzle UGX 1.6 billion from the Emyooga program.

In October 2020, the Ministry of Finance, Planning, and Economic Development launched the first phase of the Emyooga initiative, allocating UGX 4.8 billion to Nakawa Division. However, reports indicate that only UGX 1.92 billion has been utilized.

According to sources, 60 Emyooga SACCOs were established, with 58 of them each receiving UGX 30 million as initial seed capital, totaling UGX 1.74 billion. However, in 2024, 30 of these SACCOs were credited with UGX 60 million each from the Microfinance Support Center instead of the standard UGX 30 million stipulated by government regulations.

Further details reveal that UGX 900 million was transferred to these 30 SACCOs, yet members were only able to access UGX 30 million, while the remaining funds appeared in accounts but were inaccessible for withdrawal.

A specific case involves the Mutungo, Mbuya I, and Mbuya II Tailors Emyooga SACCO LTD, which initially received UGX 700 million. The funds were withdrawn after three days, and later, UGX 60 million was deposited into the account, of which only UGX 30 million was accessible to members.

In 2022, the Microfinance Support Center launched a UGX 4 billion initiative aimed at incorporating additional SACCOs in Kampala, particularly targeting groups such as shoe shiners and street vendors. However, reports suggest that although funds were released, no new SACCOs were formed. Instead, allegations indicate that the money was misappropriated by officials from the Microfinance Support Center, the Ministry of State for Microfinance, and the Ministry of Kampala and Metropolitan Affairs.

Local leaders, including Nakawa Division Councillor Moses Okwera Mugisha, have voiced their concerns over the rampant corruption and mismanagement of the Emyooga funds. Issues raised include the diversion of funds for personal use, the inclusion of ineligible beneficiaries, a high number of non-functional SACCOs, external interference, and a lack of accountability.

The Emyooga program originally targeted 18 categories of beneficiaries, including boda boda riders, women entrepreneurs, welders, taxi operators, fishermen, restaurant owners, mechanics, veterans, produce dealers, market vendors, tailors, persons with disabilities, youth leaders, salon workers, performing artists, journalists, and elected leaders.

The national budget for the initiative was estimated at UGX 260 billion, with Kampala and Wakiso districts receiving UGX 26 billion and UGX 14 billion, respectively. An additional UGX 10 billion was allocated to support groups outside the original Emyooga categories, such as visual artists, herbalists, gym trainers, waiters and waitresses, cobblers, and bar attendants.

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