-MSC, a Cesspool of Corruption and Mismanagement of Taxpayers’ Money
-Through Kasolo Foundation Ltd, Kasolo Pulled Shs2Bn To Fund His Political Campaigns, Boost Personal Investments
By Insight Post Uganda
Kyotera-Uganda
Life is a daily struggle for the impoverished residents in the quiet, dusty villages of Kalisizo and Kyotera town councils. Their dreams of a better future are shackled by the chains of poverty, leaving them yearning for an opportunity to break free.
They placed their hopes in institutions like the Microfinance Support Centre (MSC), believing it to be a beacon of light amidst the darkness of their circumstances.
However, the recent shocking revelations have shattered their trust, as they discover that the very institution meant to lift them out of poverty has become a breeding ground for corruption and mismanagement of their hard-earned taxpayer’s money.
The embezzlement of 17.5 billion shillings without adhering to established protocols, the unauthorised disbursement of 50.8 billion shillings on the whim of influential figures, and loans approved without adequate security, all revealed a dark underbelly within the MSC.
To their disappointment, it is their very own State Minister for Microfinance, Haruna Kyeyune Kasolo and son of the soil, who betrayed their trust.
The same man they looked up to, the one who pledged to fight poverty and empower the people, was now entangled in a web of corruption, using taxpayer’s money to finance personal interests and including the failed political campaigns.
Background
The Microfinance Support Centre (MSC) was established in Uganda with the noble mission of providing financial support and opportunities to impoverished individuals, intending to spur economic growth and alleviate poverty. The institution’s creation came as a beacon of hope for struggling Ugandans, promising a way out of poverty and a chance to build a better life.
However, based on the recent exposé by the Attorneys General’s report, the Public Accounts Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) unearthed a disturbing reality that threatens to shatter the dreams of many. The MSC, once a symbol of hope, has now been marred by gross misconduct, favouritism, and other unlawful practices.
The Minister (Kasolo), emerges as a central figure in this disgusting affair. His role in misappropriating taxpayer funds is particularly ‘egregious’, as he not only took a staggering UGX2 billion for his personal foundation, Kasolo Foundation Ltd.
From its initial concept, the Foundation was supposed to empower the youth with vocational skills such as welding, carpentry, hairdressing, motor vehicle mechanics, and catering,, but turned out to be a facade for political funding and personal enrichment.
But he used the ‘ka-money’ to finance his failed political campaigns against his archrival-John Paul Mpalanyi, who emerged victorious in the highly competitive parliamentary election for the Kyotera Constituency.
In the midst of disappointment, after investing such a substantial sum of money with no fruitful outcome, the previously thriving foundation began to experience a downward spiral.
Sources within the foundation told us the enthusiasm of the learners gradually waned due to the insufficient resources at their disposal, coupled with the inadequate salaries for staff and instructors/tutors.
A Silent Devil Unmasked
The revelations about Kasolo’s extravagant investments, including hotels, factories, prime land acquisitions, and expensive gifts to his wife who is a private sector employee, expose his true intentions and calls for a special audit.
On many occasions, the seemingly bright minister has boasted of being in control of the finances and making final decisions while hiding behind a mask of a public servant. The public, however, can no longer sympathize with this silent devil who flagrantly misused taxpayer money for personal gain.
Unlawful Loan Disbursements
The committee discovered that a whopping UGX17.5 billion loan was given out without adhering to the established application process stipulated under the credit policy and procedures.
Influential individuals with political connections merely made calls or walked into the MSC to obtain taxpayer’s money, which they had no intention of repaying, according to the committee, chaired by Hon. Joel Ssenyonyi.
Among the beneficiaries were Majambere Investments (400 million shillings), and individuals like Ivan Majambere (UGX120 million), and Rubaga RDC- Anderson Burora (UGX110 million). The recovery of these funds from these powerful figures has posed a significant challenge for the MSC board hence causing the suffering of other Ugandans.
Unauthorised Loans
However, the extent of the rot extends beyond the initial UGX17.5 billion, as COSASE found evidence of loans totalling UGX50.8 billion being disbursed without the necessary approval from the board of directors. Shockingly, these loans were authorised solely on the directive of Minister Kasolo.
Further investigations revealed that loans below UGx400 million were approved without proper oversight. The committee established that John Peter Mujuni, the Executive Director/CEO, and Hellen Petronilla Masika, who was unlawfully appointed as Deputy ED, played a big role in approving loans worth UGX29.1 billion without following the proper channels.
Loans without Adequate Security
Still, an alarming UGX31.4 billion was disbursed as loans without adequate security. The clients who received these loans delayed providing the required collateral, yet they were still granted taxpayer’s money.
Calls for Accountability
In light of the grave mismanagement and corruption, the committee, on behalf of the taxpayers, is calling for the dissolution of the entire management committee and board responsible for the mess.
“Kasolo must be held accountable for his actions, and his ill-gotten properties should be seized to recover the stolen funds, several MPs on the committee told Insight Post Uganda.
Impact on Development and Poverty Alleviation
The rampant theft and mismanagement of taxpayer money at the MSC have severe consequences for Uganda’s development and poverty alleviation efforts.
The intended beneficiaries of the institution mainly the poor and vulnerable Ugandans, are left without the support they so desperately need. The funds meant to empower them and lift them out of poverty are instead lining the pockets of corrupt officials and influential individuals.
The theft of public funds perpetuates a cycle of poverty and hinders progress. It denies communities access to resources that could have been used to improve education, healthcare, infrastructure, and social services.
Consequently, the gap between the wealthy and the destitute widens, exacerbating social inequalities and contributing to a sense of disillusionment among the populace.
Minister’s Response
Kasolo denies taking a shilling out of the MSC loan facility. “They have never lent Kasolo Foundation money. They never sent any money to that foundation’s account. The money was lent to individual groups in Kyotera. It was they (MSC staff) who advised that I guarantee the loans.”
The Way Forward
To restore public trust and uphold the institution’s original mandate, urgent measures must be taken to address the rampant corruption and mismanagement at the MSC. According to our analysis desk, a comprehensive and independent investigation must be launched to identify all those involved in the theft and mismanagement of taxpayer’s money
A comprehensive and independent investigation is imperative to identify all parties involved in the theft and mismanagement of taxpayers’ money. This approach ensures transparency, accountability, and the restoration of public trust by uncovering the full extent of the issue.
Identifying those responsible and understanding the underlying causes can help the government prevent future incidents, uphold legal standards, and implement necessary safeguards to preserve public funds. An impartial investigation further deters potential wrongdoers while demonstrating a commitment to justice and responsible governance.
Secondly, using whistleblowers can play a vital role in uncovering corruption, necessitating the establishment and rigorous enforcement of strong whistleblower protection laws. These laws guarantee the protection of individuals who disclose misconduct, provide motivation for reporting, discourage potential offenders, facilitate the exchange of information, and maintain public trust in institutions.
However, the effective enforcement of these laws, coupled with public awareness efforts, establishes a framework that encourages whistleblowers to come forward, thus contributing to transparency, accountability, and the overall integrity of society.
Furthermore, they looked at restructuring the MSC’s board and management to ensure greater transparency, accountability, and ethical practices with oversight mechanisms in place to prevent future abuse of public funds.
Additionally, the idea of increasing public consciousness regarding the repercussions of corruption and the significance of holding individuals accountable can contribute to nurturing a societal culture that refuses to tolerate corruption.
When people are well-informed about the destructive impacts of corrupt practices on the economy, social justice, and public services, they become more inclined to demand transparency and ethical conduct from both public officials and private entities.
“By comprehending the far-reaching consequences of corruption on a broader scale, individuals are more likely to actively participate in anti-corruption efforts, support whistleblowers, and advocate for stringent measures against corruption. While it might not be entirely eradicated, we can certainly diminish its presence,” the analysts say.
They explain that the heightened awareness not only aids in preventing corrupt behaviours but also reinforces the establishment of a culture that values honesty, integrity, and responsible governance, ultimately fostering an environment where corruption struggles to thrive.
However, it is imperative that swift and decisive action is taken to hold the culprits accountable and to institute reforms that will prevent such abuses in the future. When instances of deficiency arise within its trusted institutions, the sitting government should consistently strive to restore its tarnished reputation at all costs.
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