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Home Agriculture

Ghost SACCOs, Mismanagement Of Funds Tarnish PDM Program

Insight Post Uganda by Insight Post Uganda
January 23, 2025
in Agriculture
Reading Time: 2 mins read
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Museveni-PDM

Museveni launching PDM project

The Auditor General’s report has continued to expose the rot in many sectors. Now, the Parish Development Model (PDM) is on red hot coals for alleged irregularities that point to potential loss of government funds.

The PDM, launched as a flagship strategy by the Ugandan government, aims to transform 39% of households from a subsistence economy to a money economy. 

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By the end of 2024, over Ugx2 trillion had been disbursed to 10,589 parishes across the country. 

However, the programme has been marred by mismanagement, with shocking revelations of non-existent Savings and Credit Cooperative Societies (SACCOs) receiving funds.

In his report, Auditor General Edward Akol uncovered that 567 SACCOs listed in official records did not exist, while 2,985 lacked registered offices, and nearly 2,900 had no visible signboards or address evidence. 

These ghost entities raise serious concerns about accountability for the trillions of shillings already spent.

“This undermines transparency and the ability to track funds, which could jeopardize future disbursements from the Ministry of Finance,” Akol warned.

Tarnished Program

The PDM, intended to operate as a revolving fund with each SACCO receiving Ugx100 million

 annually, has been plagued by fund diversion, kickbacks, and disbursements below the mandated amount of Ugx 1 million per beneficiary.

Further scrutiny revealed gaps in the implementation of the PDM’s seven pillars, including the Agriculture Value Chain Development and Financial Inclusion.

The report highlights that only 46.3% of the targeted population has been registered, far below expectations.

Additionally, there is limited evidence that ministries and local governments aligned their work plans with the PDM’s objectives.

Akol recommends urgent measures to restore accountability and ensure the programme meets its objectives.

These include training local government committees, integrating census data into PDM databases, and establishing offices for SACCOs to enhance transparency.

As Uganda grapples with the findings, concerns remain over whether the PDM’s ambitious goals can be achieved without significant reforms.

For now, the Auditor General’s report serves as a stark reminder of the need for vigilance in public resource management.
END

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