IGG official, leaders cited in Agago Sacco scandal

What you need to know:

  • Held. The Sacco board chairpersons, members and technical teams were briefly detained on Monday before being released on police bond.

AGAGO. The State House Anti-Corruption Unit headed by Lt Col Edith Nakalema, has commenced investigations into alleged misuse of funds at Agaru Sacco Ltd, in Agago District.

The investigation follows report of alleged coordinated abuse of office, funds and assets by the Sacco board members and failure by high profile leaders to repay loans they took from the Sacco.

In meetings held with district leaders and members of the Sacco in Kalongo Town Council on Monday, reports emerged that 190 members of the Sacco have failed to access their saving, worth Shs1 billion.
Lt Col Nakalema, during a meeting ordered those implicated to return the assets in their possession by this week as investigation into the alleged corruption continue.

She said: “We decided to intervene in the matter given the fact that there is money solicited from the public [members] involved and also because some financial support has been extended by government.”

In May 2014, while officiating at the annual General Meeting for Agaru Sacco Ltd, President Museveni donated Shs50 million to boost the Sacco operation.
Those mentioned and are being investigated include the Inspector General of Government’s director for project monitoring, Mr James Onying Penywii, who is also the Sacco board chairperson.

Others are Chris Otim and Albino Okello, both board members, Sacco staff John Mutema, Christine Atim, and Laiki Duscmen.
They are reportedly being investigated over loss of nearly Shs197m.
When contacted for a comment on the allegation yesterday, Mr Penywii instead referred Daily Monitor to the State House Anti-Corruption Unit.

Meanwhile, Mr Moses Opiyo Ogal, the Sacco Treasurer who didn’t appear during the Monday meeting, was also reported to have borrowed Shs73m but never paid it back. Our efforts to get a comment from Mr Ogal were futile by press time.

During the heated Monday meeting, the Agago North MP, Prof Ogenga Latigo, was also implicated by the board members for not paying about Shs62 million he borrowed from the Sacco. But when contacted yesterday, Prof Latigo said he has never borrowed a cent from the Sacco.

The State House Anti-Corruption Unit also got complaints that the Sacco board directors had colluded with central bank officials to buy treasury bills that have never been accounted for to date.

There were also reports that the board directors hired Bilaforce Auctioneers & Bailiffs Associates to collect debts on behalf of the Sacco, who instead went ahead to collect triple or threaten to jail the debtors.
Others implicated are members of Winye Aye Teko Group, who reportedly borrowed Shs5.6m but are currently being demanded Shs21 million.

The Agago District Police Commander, Mr Samson Lubega, confirmed in an interview on Tuesday that the Sacco board chairpersons, members and technical teams were briefly detained on Monday before being released on police bond.

He said the suspects recorded statements at Kalongo Police Station pending further investigation.

Background

The Sacco. Agaru Sacco was formed in 2002 to provide financial services aimed at eradicating poverty among locals in Acholi Sub-region, who had suffered nearly 20 years of war between government soldiers and Joseph Kony-led Lord’s Resistance Army (LRA) rebels. But the Sacco that has more than 30,000 members in the districts of Agago, Pader and Kitgum, was closed two years ago by the current board members, citing limited funds.