Prison officers cautioned against acquiring high interest loans

Kampala, Uganda | THE INDEPENDENT | The Commissioner General of Prisons Dr. Johnson Byabashaija has warned prison officers against acquiring expensive loans from lending institutions.

Byabashaija said that he has been informed that some of the prison officers are leaving loans provided by the prison SACCO which are at an interest of 13 percent in favor of loans from banks and money lenders, whose interest rate is more than 20 percent.

Byabashaija was represented by the Commissioner of Prisons John Bosco Tumwebaze at the 15th Annual General Meeting of Uganda Prisons Savings and Credit Society Limited held on Friday at Luzira Prison in Kampala.

Samuel Akena, the Chairperson of the Supervisory Committee of the SACCO revealed that they have observed the rate of withdrawal of savings is quite high and if it continues unchecked, it is most likely to weaken the liquidity of the SACCO.

Akena further said that measures are being taken with the major objective to improve the welfare of the lower-level cadres through financial empowerment.

The report tabled at the meeting indicates that in the financial year 2022 alone, SACCO made a gross income of 1.58 billion Shillings as compared to 1.36 billion Shillings in 2021 which represents a 16 percent growth.

//Happening now//

With a Vison of “Becoming the leading SACCO in the country and region with prosperous members” and a Mission “To transform Socio-economic Status of members”, Uganda Prisons SACCO hold AGM in Luzira.#VivaUgandaPrisons pic.twitter.com/9WqCBXp0ia

— Uganda Prisons Service (@UgandaPrisons) March 31, 2023

Jacob Kivumbi, the SACCO Treasurer said that the SACCO currently has assets worth 9.3 billion Shillings but the withdrawal rate from members has remained high which has reduced the savings from 1.3 billion shillings to 1 billion shillings.

Amos Turyashaba, the SACCO Board Chairperson, said that the loan portfolio increased from 7.27 billion Shillings to 8.51 billion shillings and they got a surplus of more than 778 million shillings.

According to Turyashaba, the membership also grew from 11,267 to 11,886 members but their efforts continue to be undermined by low savings, limited capital, and the existence of multiple lending institutions.

Unlike in Uganda Police Force where joining their Police SACCO (EXODUS SACCO) is compulsory with 100,000 monthly deductions from one’s salary and acquiring loans is difficult, the Prisons SACCO is a group one can join voluntarily and saves any amount of cash of their choice.

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