PDM money stuck on Sacco accounts

Farmers harvest simsim in Gulu District in 2019. The PDM is intended to lift Ugandans from the subsistence to money economy. PHOTO/FILE

What you need to know:

  • The Parish Development Model, a government programme that aims at lifting more than three million peasant households into the money economy, has stagnated.
  • Our reporters spoke to MPs to find out a true picture of progress at their constituencies. 

Early this month, the Speaker of Parliament, Ms Anita Among, granted all Members of Parliament a two-week recess starting from February 3 to February 17 to retreat to their respective constituencies and assess the progress of the Parish Development Modal (PDM).

The Speaker in her letter to the legislators read out by Deputy Speaker Thomas Tayebwa said in May 2022, Parliament appropriated Shs1.49 trillion for PDM to cover 10,400 parishes.

Several MPs whom Monitor spoke to at the weekend expressed dissatisfaction, saying the PDM money is still stuck on the village sacco accounts awaiting the guidelines on utilisation.

“The money is in the Sacco accounts untouched. The reason being the Ministry of Local Government has not issued guidelines on how to spend that money, they do not want money to go in the hands of [wrong] individuals,” Mr John Twesigye Ntamuhiira, the Bunyaruguru County MP in Rubirizi District, said.

Mr Twesigye said the government should allow people to access the money and carry out monitoring of how it has been utilised.

Sheema Municipality MP Dicksons Kateshumbwa claimed no one from his constituency has accessed the PDM cash.

“What we have established on the ground is that no one has accessed that money. So PDM money is lying on the accounts unutilised and people are very frustrated and think that this is a lie from the government,” he said.

Further, Mr Kateshumbwa said despite money lying on sacco accounts, there is no sacco that has received Shs100m as promised by the government.

Mbarara City Woman MP Ritah Atukwatse Bwahika said there are six wards that have not accessed any money due to technical glitches.

“Mbarara City is still organising to complete the training and set the people rolling to benefit from PDM,” she said.

It was not any different in Bukanga County. Its area representative, Mr Stephen Kangwagye, said: “The Ministry of Local Government issued a directive that beneficiaries that received funds, should wait for guidelines.

“As of now, those that have received the money are waiting [for guidelines].’’

Bufumbira North MP in Kisoro District John Kamara said the government should release the money already deposited on the Parish Development Sacco bank accounts.

“Its true the government deposited money on the sacco bank accounts, but this money cannot be withdrawn yet people formed their enterprises a long time ago,” he said.

In Teso Sub-region, a number of MPs are supporting locals with their money as an alternative to the PDM.
Ngora District Woman MP Stella Isodo Apolot has rolled out personal support to village savings groups worth Shs180m, with each village savings group receiving a seed capital of Shs1M.
“That money can be borrowed to offset some of the pressing issues. It is not much, but it’s a gesture in the right direction to strengthen the saving culture,” she said.

The Ngaraim County MP, Mr Peter Ogwang, who is also the State Minister for Sports, launched a village Sacco support drive worth Shs150m for women groups in the fight against poverty.

Parish chiefs
In Ntoroko District, the Woman MP, Ms Anne Mary Tumwine, said PDM is not making any headway due to a lack of parish chiefs.

“Out of the 47 parishes, we only have 15 parish chiefs and up to now the district has never recruited to fill the gaps,” she said. Parish chiefs are in charge of monitoring the exercise.

The Buruli Constituency MP, Mr Alled Akugizibwe, said most saccos members are not informed about PDM.
“For the Saccos I have visited, the majority of the members don’t have clear information about PDM programmes, they [locals] need to know what to do,” he said.

Bughendera County MP in Bundibugyo District Acrobat Kizza said parish chiefs have not yet been paid allowances for data collection for the last three quarters.

Kyegegwa District Woman MP Flavia Rwabuhoro Kabahenda said of all 81 parishes in the district, no Sacco has accessed the money.
“Up to now, some parishes have not concluded collecting information because they don’t have facilitation and I think it was not good for us to start with financial inclusion. We should have started with a mindset change. The money is stagnant on the accounts and in June, we shall be ending the financial year,” she said.

Fort Portal City Woman MP Irene Linda Mugisa said out of 21 wards in the city, only six saccos have received the second disbursement of Shs25m while the other 15 saccos are yet to get.

Mr Sowedi Kitanywa of Busongora North County said people are impatiently waiting for the money.  “I have asked members to be patient and wait for guidance from the technical persons such that we don’t make mistakes,’’ he said.

Jinja City MP Manjeri Kyebakutikka said beneficiaries of the programme have not been trained.
“What I have observed is that many people have not been trained about the programme, they actually have no idea about PDM because the people in charge of sensitising the public are only reaching out to their relatives, NRM members and close friends,” she said.

Iganga District Woman MP Sauda Kauma  Alibaawo said the implementation of the programme has failed.  “It is very difficult to say the PDM is operational because the money which was released is lying idle in bank accounts,” she said.

Kyotera County MP John Paul Lukwago said some parishes in his constituency have not received the money.
“The mode used to select the enterprises is questionable, some which could help people make more money were left out,’’ he said.

In the West Nile Sub-region, the Arua Central Division MP, Mr Jackson Lee Atima, said the groups in Arua central have not received the money.
“Out of 60 wards in my constituency, five received the Shs17m each in the financial year 2021/2022. And this financial year, they have not received anything and that money is still in the accounts,” he said.

Terego East Constituency MP Mario Obiga Kania said people have lost trust in the programme.
“The National Treasury should speed up the remittance of funds to these groups and improve the way information is disseminated to the various stakeholders. This will build trust that the PDM is real,’’ he said.

In Busia District, Samia-Bugwe Central MP Dennis Nyangweso said 52 saccos have each received Shs34.1m on their accounts while 10 saccos have received Shs9.1m.
“I have been promised by the technocrats that this money will soon be sent to the beneficiaries’ accounts soon,” he said.

In northern Uganda, Ms Beatrice Akello Akori, the Agago District Woman MP, who is also the State Minister in charge of Economic Monitoring, said the programme is struggling to impact on the lives of the people.
“These programmes, Emyooga and PDM have issues, the planners did not consider many things and also the money is not reaching the typical poor beneficiaries,” she said.

Kilak South County MP Gilbert Olanya said his assessment reveals a trail of scandals around the funds. 
But the narrative is different in Mpigi after the district Woman MP, Ms Teddy Nambooze, said some people in her constituency have accessed the money and they have put it to the right use.

“I have visited at least 30 percent of beneficiaries and looked at some of their projects. These ones received the money though it was little, but good enough their projects are running. Some are into poultry and piggery; they are progressing,” she said.

Bulambuli District woman MP Irene Nafuna Muloni who attended PDM meeting at the district to assess the effectiveness of disbursed funds asked the government to give money to locals in March to enable them buy seedlings.

The Minister for Local government, Mr Raphael Magyezi, confirmed that there is no Sacco across that has received Shs100m as appropriated by Parliament since it is released quarterly.
“The money appropriated by Parliament is for a financial [year] which ends in June, money is released in quarters so far money has been released for the last quarter of shs25m, but those saccos that will be ready will receive the money by June,” he said.

He added that the money is delayed on accounts because of the need to ensure checks and balances are in place.

President Museveni launched the PDM programme in February 2022.  Each parish is expected to receive Shs100m.

*Compiled by Felix Ainebyoona, Robert Muhereza, Obed Kankiriho, Emmanuel Arineitwe, Rajab Mukombozi, Ronald Kabanza, Milton Bandiho, Alex Ashaba, Ismail Bategeka, Longino Muhindo, Moureen Biira, Simon Peter Emwamu, Al Mahdi Ssenkabirwa, Brian Kyanjo, Ricahrd Kyanjo, Felix Warom, Clement Aluma, Ronald Acema, Scovin Iceta, David Awori, Ronald Seebe, Tausi Nakato, Abubaker Kirunda, Denis Edema, Opio Sam Caleb, Tobbias Jolly Owiny, Weswa Ronnie & Fred Wambede.