Co-operative Unions and Saving and Credit Co-operatives (SACCOs) across the country have urged government to formulate one law to govern them when it comes to regulation.
Their call comes amidst controversy over regulation were they are torn between Ministry of Trade that licenses them through registrar, Bank of Uganda and Uganda Microfinance Regulatory Authority over matters of regulation.
This call was sounded by Mr Ferdinand Tumuhaise a lawyer with Kampala Associated Advocates during a stakeholder meeting of co-operatives organised by Uganda Co-operative Alliance.
“There is no unified law that says this co-operative union or SACCO should be regulated by such a Ministry or government agency making one be tossed from one place to another which is wastage of time,” he said.
According to him, government through Parliament should come up with a good law that is harmonised and sets the criteria clear on who has the mandate to regulate such organisations.
Mr Tumuhaise said the current law is ambiguous as members of co-operative unions and SACCOs struggle to understand it. He cited a situation where one is registered by registrar of co-operatives and SACCOs then sent to Bank of Uganda for registration to be regulated yet they are supposed to be regulated by Uganda Microfinance Regulatory Authority which brings about confusion.