Parliamentary Probe: Demands and Discrepancies in Emyooga Fund Disbursements

The Public Accounts Committee (PAC) of Parliament instructed officials from the Microfinance Support Centre to prepare a comprehensive report listing all recipients of Emyooga funds during the 2022/23 fiscal year. PAC also mandated that this report include specific details regarding the amounts of loans disbursed and recovered.

This directive came in response to findings by the Auditor General, revealing that over 70 percent of loans issued by the agency were still outstanding. Frustration grew during the committee session when incomplete documentation from the agency led to an abrupt halt of proceedings, failing to meet the MPs’ information requirements.

Muwanga Kivumbi, chairperson of the committee, stated, “We are conducting an audit for the financial year, focusing on funds received, disbursed, and utilized, totaling Shs135 billion allocated for lending.” He emphasized the necessity for officials to present records detailing borrowers, loan disbursement dates, and amounts.

Susan Amero, MP for Amuria, raised concerns about discrepancies in SACCO data, highlighting ambiguities in district listings like Gulu and Lira, suggesting potential operational issues.

John Mwebembezi, head of finance at the Microfinance Support Centre, disclosed that Shs152.7 billion was allocated to Emyooga funds, with Shs70.71 billion disbursed. He committed to providing the requested beneficiary list in detail.

In response to queries about loan performance, Xavier Kyooma, MP for Ibanda North, sought clarification on outstanding balances, particularly distinguishing between principal and accrued penalties, crucial for assessing the agency’s financial health amid concerns over non-performing loans flagged by the Auditor General.

The officials from the Microfinance Support Centre are scheduled to appear again on Friday at 9 am with comprehensive lists of beneficiaries, details on defaulters, and financial statements for further scrutiny.