How to shield PDM funds against corrupt officials

Vice President Jessica Alupo launches PDM Saccos in Kalangala District on July 3. PHOTO/ SYLVESTER SSEMUGENYI

What you need to know:

  • President Museveni has directed that the PDM money be sent directly to Sacco bank accounts.

Government has come up with a raft of stringent measures to avert corruption in implementation of the Parish Development Model (PDM), a multi-billion government project that aims at lifting 17.5 million Ugandans out of poverty through the transformation of the subsistence households into the money economy.

More than Shs2 billion was embezzled forcing the centre to swing into action and arrest several district leaders across the country.

Prime Minister Robinah Nabbanja on Tuesday told beneficiaries to properly utilise the funds.
“This is a revolving fund meant to be paid back and not a kasiimo [thanks giving funds] for consumption. And let me warn any people planning to dip their dirty hands in this money, that they will be dealt with firmly,” she said.

Mr Ben Kumumanya, the Permanent Secretary in the Ministry of Local Government, which directly supervises the implementation of the programme, yesterday said government has already put in place measures to ensure that funds are not abused.

He said a number of government agencies have been tasked with responsibilities of monitoring the programme. “Auditor General, IGG, ISO, OWC, Line Ministries and Ministry of Local Government are all involved. Parliament is also on board as per Article 164(3). In addition, we are issuing a Statutory Instrument on PDM Funds. There is also a fully fledged PDM Secretariat for day-to-day coordination,” he said.

Betty Amongi, the Minister of Gender, Labour and Social Development, said the ministry, whose sector has special interest groups accessing 80 percent of the PDM funds, has designed a comprehensive strategy of monitoring utilisation through local structures at parish levels. 

“These include; youth, women, PWD, older persons and community development officers. We shall facilitate these structures at district levels to monitor PDM utilisation, recovery and revolving,” she said.

Ms Hadijah Namyalo Uzeiye, the presidential advisor/ head NRM chairman’s office, said the government has so far released Shs80.92b to cater for the first quarter, while Shs1.05 trillion was earmarked as revolving funds to the PDM Saccos this Financial Year. She said those found culpable will face consequences.

“We are determined to cut the hand of corruption in the PDM project. We are going to investigate, arrest and prosecute any person implicated in the abuse of project funds. We are tired of parasites meddling in the development of our country. The President’s message on this matter is clear; the 2021-2026 Kisanja is for creating wealth, jobs and income for all Ugandans,” Ms Uzeiye said. 

She added: “Our strategy is to uplift a total of 17.5 million Ugandans in 3.5 million households out of poverty.”

To protect PDM funds, Ms Uzeiye told Daily Monitor that the government decided to send money directly to Saccos’ bank accounts. 

She said Sacco members must ensure accountability of all the funds received. 

“This is not free money, the parish chief is going to be the coordinator of all government efforts at each of the 10,594 parishes and will report to the sub-county chief. Each parish as the President guided, will have a cooperative society through which the NRM government support will be channeled,” Ms Uzeiye said.

She asked leaders at all levels, including Opposition, to sensitise the people on the use of PDM funds. 

However, Mr Erias Lukwago, the Kampala Lord Mayor, said the programme may end up being another hoax because of the involvement of NRM party functionaries and sidelining of elected district and lower local government leaders.

“Government decision to cut out local governments from the disbursement chain of PDM is really baffling. The innuendo therein is that local leaders are thieves and central government is comprised of angels. But you wonder how foolproof the selection process is and the accreditation done at the centre, of course with the parish NRM cadres playing a key and unorthodox role,” the Lord Mayor wondered. 

Richard Todwong, the NRM party Secretary General, yesterday said the party structures have been notified about their involvement in implementation of the programme.

“The only way to protect the fund is mass information to the beneficiaries because once the beneficiaries are aware that government has released their money, they will protect the money from being abused by officials. Government funds are always abused by officials handling them and once we give enough information to the beneficiaries I am sure they can put those officials to task,” he said.

What needs to be done?

Ms Justine Kasule Lumumba, the minister-in-charge of general duties at the Office of Prime Minister, yesterday asked the responsible ministries, departments and agencies to make strong guidelines and keep reviewing them to guard against abuse of the funds. 

She asked for transparency and consistent supervision of the programme activities.

“There should be monitoring by both centre and local governments and quarterly evaluation should be carried out to ensure that the guidelines are strictly followed,” she said.

Prof Ogenga Latigo, the former Leader of Opposition, said government should take exceptional measures to ensure that every official accounts for funds disbursed to districts and lower level administrations. 

“Issue warning on abuse of PDM funds and consequences that will result. Impose exemplary punishments upon anyone who abuses PDM funds, including refund, dismissal, prosecution and jail without exception,” he said. 

Prof Waswa Balunywa, the principal of Makerere University Business School, said such funds would be prone to abuse if passed through the existing government channels.

“The beneficiaries of PDM are supposed to form themselves into groups. If the money is paid to these Saccos, it is then paid to individuals using the banking system or the mobile money system, then you know the money is safe. If the Sacco managers eat the money, remember they are in the Saccos and are accountable to the group where they belong,” he said. 

Prof Venansius Baryamureeba, the former presidential candidate, said priority and focus should be directed to the registered Saccos.

“The auditor general or auditors appointed by the auditor general should check the governance structures and financial management systems of these Saccos. There should be continuous capacity building by government for the Sacco executives as most of them may not have handled more than Shs5m [before] and PDM funds may be higher than they can manage without capacity building, especially in financial literacy,” he said. 

Mr Wilfred Niwagaba, the Ndorwa East Member of Parliament and the Shadow Attorney General, said the only way to protect the funds is to ensure that the target beneficiaries, who are the poor, are indeed the ones selected.

“The officials involved in the entire chain of transfer of the cash are closely monitored and do account for every penny annually. Lastly the target beneficiaries are monitored and inspected by both the leaders and technical staff to ensure that they apply the PDM cash strictly for the purposes it was given to them,” he said.