The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Nakawa Chief Magistrates Court has summoned Wilson Omoding, Chairperson of the Police savings group known as Exodus Cooperatives and Credit Society Limited, along with Secretary Daniel Ogwok, to respond to charges of running a money lending business without a valid license.
The summons, reviewed by Our Reporter, orders Omoding and Ogwok to appear in court on December 13, 2024, following a case filed by city lawyer Steven Kalali, who is acting as a private prosecutor. Kalali claims that Exodus SACCO has over 30,000 police officer members who were allegedly enrolled involuntarily, with their salaries deducted between 20,000 to 50,000 shillings monthly as contributions without their explicit consent.
Kalali further accuses Exodus SACCO of offering financial services, including loans, without being licensed by regulatory bodies such as the Uganda Microfinance Regulatory Authority or the Bank of Uganda, as required by law. “That am aware that upon coming into force of the Tier 4 Microfinance and Money Lenders Act Cap 61, a public notice was issued calling upon all entities to be licensed under the Act for their unlawful operation,” reads Kalali’s complaint.
He argues that these unauthorized salary deductions violate legal provisions and amount to theft under the Penal Code Act, demanding that Exodus SACCO’s management be held criminally accountable. “The cause of deduction of police officers’ salaries as contributions to their membership for Exodus Cooperative Savings and Credit Society Limited continues to operate financial services, including loans, without a license as mandated by law,” he stated.
Kalali’s complaint highlights that Parliament and regulatory bodies, including the Bank of Uganda and the Uganda Microfinance Regulatory Authority, have recognized the SACCO’s unlicensed operations. He requested the issuance of criminal summons so that the SACCO leaders could be prosecuted.
Media reports last week revealed that the Uganda Police owe their Exodus SACCO 6.5 billion shillings in arrears and remittances from officers. The delay in remittances has caused frustration among police personnel, who claim they are unable to access loans even three months after applying. The SACCO faces a shortage of funds due to unfulfilled government commitments.
In February 2024, Parliament instructed the Uganda Police Force’s Exodus SACCO to halt mandatory salary deductions from personnel. The directive came after the Committee on Defence and Internal Affairs, led by MP Wilson Kajwengye, discovered that the SACCO violated the Cooperatives Societies Act by making deductions compulsory rather than voluntary.
Earlier this year, Kalali petitioned the High Court over Exodus SACCO’s actions, seeking redress for police officers subjected to mandatory monthly salary deductions. He named the Attorney General as a respondent, arguing that since 2015, police officers have been involuntarily enrolled into Exodus SACCO, which continues to deduct their salaries unlawfully.
Kalali demands a declaration that the government has failed to protect police officers’ rights to freedom of association and that compulsory salary deductions are illegal. The case is currently pending before the court.
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