Police chief rejects MPs’ advice on Sacco

The Deputy Inspector General of Police, Maj Gen Geoffrey Tumusiime Katsigazi, has directed that the Police Exodus Sacco’s operations continue, despite pressures from the MPs and some police officers that Sacco deductions be halted until audits have been carried out. 

Maj Gen Tumusiime said a police officer who doesn’t save from his salary or one who withdraws all his savings will be unable to get loans and this would be disastrous to him and his family in future.  

“Some of our leaders and opinion leaders, who claim to be friends of police officers, tell them that this Sacco is wasting their money because they aren’t allowed to withdraw all their savings. If you withdraw all the savings, it means you are left with zero on your account. It is very dangerous to you and your family,” Maj Gen Tumusiime said. 

Last month, an inquiry report by the Parliament Committee on Defence and Internal Affairs directed that Exodus Sacco immediately halt deductions of funds on the police officers’ salary until a membership audit has been carried out by the registrar of cooperative societies. 

The inquiry followed complaints about some of the Sacco members that there were irregularities in the management of the association and they were being limited on the percentage to withdraw from their savings.

Maj Gen Tumusiime said savings are like military training and are painful given the meager salaries security personnel get, but “those funds are very helpful in the future of the officers."

“When you have retired from the police or when you have encountered a challenge that requires financial push in the future, you know that I have an account where I can run to and get finances or a loan,” Maj Gen Tumusiime said. 

He pleaded with leaders to allow the officers to save money on their salaries. 

Total assets
The chairman of the Police Exodus Sacco, Senior Commissioner of Police (SCP), Wilson Omoding, said the Sacco’s total assets have increased from Shs59.5b in 2022 to Shs70.7b in 2023. 

“Our financial performance rebounded from a very difficult 2022, mainly driven by the continued growth in interest income. Net interest income increased from Shs3.39b in 2022 to Shs6.68b in 2023. The balance sheet also experienced growth, rising from Shs59.77b to Shs70.89b, marking an 18.8 percent increase,” SCP Omoding said. 

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On the issues raised by MPs that Police Exodus Sacco was operating as microfinance since it takes deposits, but didn’t have a license from the Bank of Uganda as required by the law, SCP Omoding said it is still a challenge to all microfinance institutions.

“The Cooperative Societies Act and the Tier 4 Microfinance Institutions Act both regulate Saccos, leaving us unsure of which authority to adhere to. This ambiguity creates uncertainty regarding reporting lines, as Saccos find themselves caught between the Ugandan Microfinance Regulatory Authority and the Bank of Uganda,” he said.

Background
The Police Exodus Sacco, which was started in 2007 to improve the welfare of police officers, has between 41,000 and 42,000 members. It has been dogged with fraud and mismanagement that once all documents were burnt making it difficult to know how much each personnel had saved.

Before SCP Omoding was elected the chairman of the Sacco, the association was facing mismanagement issues prompting criminal investigations.

The former Inspector General of Police, Martins Okoth-Ochola, directed the audit of Sacco book, increase in transparency and use of digital platforms to enable members to access services without having to travel to police headquarters.