The Auditor General of Uganda, Edward Akol, has revealed serious flaws in the management and execution of the Parish Development Model (PDM), a key government initiative aimed at boosting community-led income-generating activities.
In a report presented to the Deputy Speaker of Parliament, Thomas Tayebwa, Akol outlined numerous discrepancies in the use of funds allocated to the program in the 2023/2024 financial year.
Parliament had appropriated Ugx1.1 trillion for the PDM, with Ugx1.06 trillion designated for the Parish Revolving Fund (PRF), intended to support over 10,500 community savings and credit cooperative organizations (SACCOS) across the country.
The audit, which was part of a series of thematic reviews aimed at improving transparency and accountability, highlighted several issues in the program’s implementation.
Despite significant progress, the report found that key areas, such as household data collection, remain incomplete.
Household data collection stands at 79.9 percent, with population registration far lower at just 46.3 percent.
Akol further disclosed that 212 PDM SACCOS in 14 local governments could not account for Ugx1.544 billion of PRF funds withdrawn from their bank accounts but never disbursed to the intended households.
Additionally, the audit uncovered irregularities in loan approvals, with Ugx896 million issued to 902 individuals who shared duplicate National Identification Numbers, names, or phone numbers.
Further findings revealed that 342 beneficiaries in 253 PDM SACCOS had implemented ineligible projects, while 170 beneficiaries in 124 SACCOs had non-existent projects.
Additionally, 1,004 beneficiaries who received Ugx 1 billion in PRF funds failed to provide proper documentation to account for the funds.
The audit also pointed to significant issues with the registration of SACCO offices.
In total, 2,985 SACCOs in 127 local governments lacked registered office addresses, and 567 SACCOs in 41 local governments registered offices that did not exist.
Despite these setbacks, the Auditor General’s report noted that enterprise training was conducted for most SACCOs, and the full allocation of 1.06 billion Shillings for the Parish Revolving Fund was realized.
Akol emphasised that reforms are urgently needed to address these gaps, warning that if left unaddressed, such irregularities could undermine the sustainability of the program.
He also called for greater oversight and improved project management to ensure that funds are fully utilized to benefit Ugandans as intended.
The Auditor General’s revelations have prompted calls for immediate action from lawmakers, as the country seeks to ensure the effectiveness of one of its key poverty reduction programs.
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