Audit Reveals Missing Shs 39 Million from Museveni’s Donation to Mbarara Sacco; Former Board and Manager Under Scrutiny

An external audit has revealed that over Shs 39 million out of the Shs 60 million recently donated by President Yoweri Museveni to the Mbarara Central Market Vendors Savings Cooperative Society (Sacco) is missing. The funds were provided as startup capital for nearly 600 members of the Sacco, which had total savings of about Shs 400 million.

The audit report for the fiscal year 2022/23 to 2023/24, presented to the Sacco members and shareholders on Wednesday, indicated that the Sacco incurred a loss of Shs 4 million in FY 2023/24 and currently holds a loan portfolio of Shs 91 million.

External auditor Peter Kayebe reported that the missing Shs 39 million was not documented, and bank statements showed that the Sacco had not received any savings or loan repayments from its members for over a year. Kayebe accused Sacco manager Hope Kyarikunda of failing to provide necessary accountability documents and urged the resident city commissioner (RCC) to ensure she accounts for the missing funds. He also criticized the former Sacco board for neglecting their duties under the Cooperatives Societies Act.

Kayebe insisted that the former board should be held accountable for the mismanagement and the unaccounted-for funds. John Byaruhaga, the commercial officer of Mbarara City South Division, also blamed the former board, chaired by Muhammed Nyombi, for poor management.

Byaruhaga noted that the Sacco currently has no funds in its commercial bank account and a large sum remains unaccounted for. Polly Katwire, the assistant resident city commissioner in Mbarara, has given the Sacco’s chairperson and board a two-week deadline to meet with defaulters and develop a repayment plan.

Current Sacco chairman Simpson Mugabi highlighted operational issues, including a severe staff shortage and a manager who, also acting as cashier, is owed over Shs 1 million in salary arrears from March to July. Mugabi also pointed out the lack of a formal work plan and budget, both of which need approval from the general assembly. Former chairperson Nyombi Muhammed has accused the external auditor of conducting the audit without involving Sacco staff.