Police responds to alleged Exodus SACCO fraud management

By Our reporter

NAGURU – Uganda Police Force’s Exodus Savings and Credit Cooperative (SACCO) management has denied alleged fraudulent operations of the saving group.

This followed reports from police officers who complained about compulsory monthly savings, challenges in accessing their savings, lack of representation of lower cadres at the Annual General Meetings (AGM), and others.

While appearing before Parliament recently, the Minister of State for Internal Affairs, Gen. David Muhoozi admitted that members of the SACCO are restricted from withdrawing their savings due to liquidity challenges.

However, a press statement issued by Exodus SACCO chairman SCP Omoding Wilson Otunu Monday 19^th 2024 exonerated management of any wrongdoing.

“Exodus SACCO operates in accordance with the cooperative principle of autonomy and independence. The SACCO is a self-help organization controlled by its members, with no interference from police management. It operates under the patronage of the Uganda Police Force to improve officers’ welfare,” said Omoding.

He further clarified, “The SACCO engages its members directly through various channels such as board, management, delegates, community liaison officers, and unit commanders, providing updates on SACCO developments, including shares, savings, loan products, system upgrades, and addressing member concerns.”

Omoding said, the general meeting, empowered by Regulation 20 of Cooperative Societies Regulations and Article 16 of the Exodus SACCO by-law, governs the SACCO’s affairs and oversees leadership transitions.

He said the SACCO maintains an updated membership register, prioritizing accuracy and reliability to comply with regulatory requirements outlined in the Cooperative Societies Act.

On February 1st, 2023, the Rt. Hon. The Deputy Speaker directed the Committee on Defence and Internal Affairs to inquire into the operations of the Uganda Police Force Exodus SACCO, following the statement by the Minister of State for Internal Affairs regarding involuntary deductions from Police officers’ salaries for savings with the SACCO. The findings of the inquiry were presented to parliament on February 2nd, 2024, along with recommendations.

Omoding said the Exodus SACCO appreciates the committee’s findings.

“However, the report did not adequately address the journey, achievements, and challenges of Exodus SACCO from 2020 to date, including increased member participation, loan and savings growth, and financial empowerment,” he said.

Omoding said in response to the recommendations, Exodus SACCO management has written to the registrar of cooperatives regarding the issues raised in the report, providing supporting documentation.

“Additionally, management has communicated with the Police Council, as the SACCO was established by a resolution of the council in 2007. The recommendations from both entities will guide the next steps,” he added.

The press statement indicates membership experienced a slight decrease to 41,798 in 2023 due to retirement, voluntary exits, and member deaths.

“However, the SACCO achieved significant growth in its loan portfolio, with a 48% increase, reaching Shs45,819,315,737. Savings withdrawals remained high at approximately Sh557,000,000 per month, constituting over 69% of savings deposits during the period. Loan disbursement totalled Shs28,695,750,000, with total assets reaching Shs69,970,607,712, share capital at Shs13,106,997,012, and member savings at Shs31,174,370,467,” reads the statement.

Omoding said, “Exodus SACCO remains committed to transparency, accountability, and member autonomy. We appreciate the committee’s recommendations and assure stakeholders that appropriate actions have been taken to address each point.” fairness, inclusivity, and responsible financial management.

He adds, “We express gratitude for the support and guidance from regulatory bodies, stakeholders, and members. As we progress, we remain dedicated to continuous improvement, responsiveness to feedback, and excellence in serving our members and advancing the cooperative movement.”