Police Exodus SACCO sued for extortion and operating illegally

Kampala, Uganda | THE INDEPENDENT | City Lawyer Steven Kalali has sued the  Exodus Cooperatives Savings and Credit Society Limited for subjecting police officers to mandatory and involuntary monthly salary deductions as contributions to the SACCO.

In his suit where the Attorney General is listed as the first respondent, Kalali argued that since the year 2015, the serving members of Police intake were compulsorily or mandatorily recruited into the Exodus Cooperatives Savings and Credit Society Limited which to date continues to  deduct their salaries against their wish or will.

Kalali contends that the act of compulsory recruitment without their express consent or against their wish is illegal and violates  their constitutional right to freedom of association.

The evidence before Court shows that the involuntary recruitment covers police officers at Mpigi police station, Nsangi police station, Katonga Regional police, Kibibi Police Station among others,  at all of which the police staff are allegedly affected by the operations of or being associated to the membership of Exodus Sacco.

Records further show that the  Exodus Sacco in pursuit of its objectives extends financial services/credit/ loan facilities to members of the Sacco/police staff repayable on agreeable terms.

However, that Exodus Sacco being a micro deposit taking institution  involved in offering financial services /money lending business, has never been licensed or registered with or complied with the statutory requirements under the Tier 4 Microfinance institutions and Money Lenders Act 2016.

“That the continued operations of the 2nd respondent to offer financial services since 2016 in default of compliance with statutory requirements violated or is illegal and unlawful”, further reads the documents.

Evidence further shows that every month, salaries of serving police officers are subjected to monthly deductions ranging from 20,000 shillings to 50,000 shillings as members towards the Exodus Sacco.

Kalali is now seeking a declaration that the government has failed on its obligation to ensure that members of the police force are not are arbitrary deprived of their right to freedom of association or extorted of their monies/monthly earnings.

He also wants a declaration that the deductions on salary for members against their will is illegal and unlawful. The petition is supported by two affidavits including for a police officer (name with held because of his  fear of being turned against by his superiors) and another for the Petitioner Kalali.

The police officer in his affidavit contends that he has been in Police for ten years and that there is too much fear and tension in the force that members even when affected by some actions like the operations of the Exodus Sacco, cannot come out because of fear for being witch hunted by the top officials; and only few can tell the truth which they want court to intervene due to their untold evidence.

“That in the year 2015, while new police officers were /we were being passed out at police training school Kabale, we were without our express decision making and without being accorded time to discern on the pros and cons of the 2nd respondent(Exodus Sacco) informed or directed by our charge superior officers that we had been recruited as members in the 2nd respondents Sacco “, reads the affidavit.

The affidavit adds that Exodus Sacco only benefits the superior officers but not junior officers especially in times of financial emergencies like paying school fees. Further that,  they end up limiting saving withdrawals to only 25 percent once a year which clearly makes it difficult to support their families hence the hard life they go through as junior police officers.

“Several outcries have been made by us and other members of the public who are concerned with our living to various entities including Parliament of Uganda but all in vain as to date, the 2nd respondent continues to make monthly salary deductions against our wish and also made its membership compulsory for all police pass outs starting from 2015 without option of choosing to join or not “.

To prove his case Kalali has attached a report by Parliamentary Committee on Defense and Internal Affairs on operations of the Uganda Police Exodus Sacco to show that there were unwarranted illegal activities surrounding the operations of the Sacco that only benefits few individuals against the low ranking officers.

On his part, Human Rights Lawyer Kalali  in his affidavit says he is seeking to enforce the rights enshrined in the constitution because as a citizen he is a beneficiary from the proper services or working conditions of serving police officers who are under a  department to keep law and order; And therefore, he  says, the poor conditions or financial challenges of Police officers  subject him and other citizens at risk in addition to affecting the manner in which serving police officers would execute their world which has far reaching consequences on him as the final consumer of police services.

The Attorney General has not yet responded to this matter which is before the Mpigi High Court circuit.

The case which is being handled by Justice Anthony Oyuk Ojok  will be heard on August 20th 2024.

In February 2024, Parliament directed the Uganda Police Forces’ Exodus Savings and Credit Cooperative (SACCO) to stop mandatory deduction of personnel salaries as savings.

The Committee on Defence and Internal Affairs chaired by MP Wilson Kajwengye  discovered that the SACCO’s management is violating the Cooperatives Societies Act by denying them the option of voluntary saving.

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