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Home Politics

Nine PDM SACCO Leaders Arrested Over Alleged Fraud in Kayunga

Insight Post Uganda by Insight Post Uganda
July 21, 2026
in Politics
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Nine PDM SACCO Leaders Arrested Over Alleged Fraud in Kayunga

Assistant Resident District Commissioners

By Denis Mukisa

Nine leaders of the Parish Development Model (PDM) SACCO in Sseeta Nyiize Parish, Kangulumira Sub-county, Kayunga District, have been arrested over allegations of fraud and mismanagement following investigations by the Office of the Resident District Commissioner (RDC).

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The investigations uncovered what officials described as widespread irregularities in the implementation of the government’s flagship poverty alleviation programme, which provides seed capital of UGX 1 million to each eligible beneficiary to support income generating projects.

According to the RDC’s office, the probe revealed that the programme, intended to improve household incomes and drive socioeconomic transformation, had allegedly been turned into a source of corruption by a section of SACCO leaders.

Assistant RDCs John Luyima and Rose Kabanyana convened an emergency meeting at Kangulumira Sub-county headquarters, bringing together SACCO leaders, the parish chief and other stakeholders to discuss the findings.

Among the alleged irregularities was the inclusion of beneficiaries from outside Sseeta Nyiize Parish, which comprises nine villages, at the expense of eligible local residents.

Investigators also alleged that some SACCO leaders demanded bribes from prospective beneficiaries in exchange for being included on the list of recipients. Officials said the practice not only violated programme guidelines but also complicated loan recovery because leaders who received kickbacks were unable to enforce repayment.

The investigations further established that the SACCO was operating without proper cash books and beneficiary registers, raising concerns over accountability. During the meeting, SACCO Secretary Kakaire Umar reportedly said the records were being kept at a nearby stationery shop, whose proprietor was unavailable when officials sought to verify them.

Officials also accused SACCO leaders of manipulating information on the government’s Wendi PDM digital platform by registering mismatched names and telephone numbers to facilitate fraudulent disbursements.

Assistant RDC John Luyima condemned the alleged bribery, saying those demanding money from beneficiaries were sabotaging a government programme intended to fight poverty.

“If you take a bribe before giving out the loan to the beneficiary, it means you are the number one enemy to government and to fail the programme,” Luyima said.

The investigations also implicated some local government officials.

Community Development Officer Joy Namukasa was accused of facilitating PDM funds for Kato Lawrence, described by investigators as her husband and a civil servant at Lugasa Health Centre III, as well as two other people who reportedly did not reside in the parish. Officials said this contravened programme guidelines, which prioritise vulnerable residents within the parish.

Kangulumira Sub-county Chairperson Ssentamu Mawanda Chris was also accused of influencing the inclusion of two beneficiaries, among them a woman who officials said was then his girlfriend and is now his wife.

Investigators further cited a case in which funds were allegedly sent to the telephone number of a deceased person under the name Kamitti Mary while the intended beneficiary was listed as Mangadarena Babirye, describing it as a serious case of fraud.

Responding to the allegations, SACCO Chairperson Lubega Haruna blamed politicians for allegedly pressuring committee members to include ineligible beneficiaries. Secretary Kakaire Umar and other committee members reportedly apologised and pledged not to repeat the mistakes.

Following the meeting, Assistant RDCs Luyima and Kabanyana ordered the arrest of all nine SACCO committee members on allegations of sabotaging the PDM programme through fraudulent practices.

The suspects recorded statements at Kangulumira Police Station before being transferred to Kayunga Central Police Station for further investigations.

Maj. Jimmy Sseruwo, who oversees Operation Wealth Creation in the area, warned that authorities would take firm action against anyone undermining government programmes aimed at improving household incomes. He also demanded the recovery of any funds found to have been misappropriated.

Assistant RDC Rose Kabanyana reminded local leaders that PDM funds are recoverable loans and should be treated with the same seriousness as money borrowed from a financial institution.

“This money was not brought as a bonanza but for the great purpose of uplifting communities,” Kabanyana said.

Kayunga Chief Administrative Officer Edith Mutabaazi condemned the alleged involvement of civil servants in the scheme, describing it as a violation of programme guidelines. She directed the RDC’s office to compile a comprehensive investigation report and pledged disciplinary action against any government employees found culpable.

The latest developments add to growing concerns over the implementation of the Parish Development Model in parts of the country, where allegations of corruption, beneficiary manipulation and weak oversight have occasionally emerged.

Authorities say investigations into the Sseeta Nyiize Parish case are ongoing, with more arrests and recovery of funds expected if additional evidence is obtained. They have reiterated that government remains committed to ensuring PDM resources reach the intended beneficiaries, particularly poor and vulnerable households at the grassroots.

 

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