EMYOOGA FUNDS AT RISK AS MEMBERS DELAY REPAYMENTS IN ARUA CITY

By Martin Anguyo
Arua City
 
Some of the group members during annual general meeting at their office in Onduparaka (Photo by Martin Anguyo)

The leadership of Ayivu West Constituency Women Entrepreneurs Emyooga Savings and Cooperative Society Limited in Arua City is facing challenges in recovering over Shs 35 million from its members across more than seventeen groups.

It is alleged that the funds were disbursed between 2021 and 2022, yet to date, the majority of beneficiaries have not refunded the money they borrowed.

During his report presentation, the society’s auditor with Micro Finance Limited cautioned that if members fail to repay their loans on time, the society will struggle to generate meaningful interest, thereby weakening its financial foundation.
“How will you access new funds when the old ones are still with members? By promptly repaying your loans, you allow the society to grow and you, in turn, benefit from increased interest,” the auditor emphasized.

The chairperson of the society, Azindi Mbotella, revealed that, management is drafting a policy aimed at ensuring full recovery of funds from members.
″He has given the report exactly the way it is, it’s therefore up to us to design policies which can control this money and run the business. If we do this very heartedly and we all support implementing the policies we design, we shall go forward. If we really intend to continue running normally, we have the interest to go and we will collect all the money to add onto our money and run normally? noted the chairperson.

Meanwhile, Ayiko Jobel, the Acting Commercial Officer of Arua City noted that the situation points to gaps in the financial management principles of the society, which must be addressed for sustainability.
″That could indicate that the loan policy has some weaknesses, there is need for them to review the loan policy and bring it to the attention of special general meetings to approve so that those gaps are closed and recovery is done.  When somebody is picking a loan, this person has collateral. So, why he or she is not paying, it is within the Sacco’s mandate to ensure that, they use all possible ways to recover these monies, ? Jobel said.

Launched in August 2019, the EMYOOGA program was designed to transform 68% of homesteads from subsistence farming to market-oriented production, with the goal of promoting job creation and improving household incomes. In the 2021/2022 financial year, Arua City disbursed close to Shs 1.7 billion to different SACCOs, with more groups expected to benefit under Phase II of the program, according to official reports.