Sembabule RDC Threatens Crackdown on Emyooga Loan Defaulters

Sembabule District is poised for a stern crackdown on beneficiaries of the government’s Emyooga wealth creation initiative who have defaulted on their loan repayments. Resident District Commissioner (RDC) Faizal Sseruwagi issued a strong warning, vowing that no defaulter will be spared in the upcoming recovery efforts.

The announcement came during a critical meeting in Lwemiyaga County, which gathered Emyooga SACCO leaders, local officials, and district administrators to evaluate the program’s performance.

A tense atmosphere prevailed as SACCO leaders were pressed to explain the alarmingly low recovery rates of Emyooga funds. Some leaders cited that beneficiaries had vanished after receiving the loans, while others noted that borrowers had ceased attending meetings, rendering them untraceable.

“Many of the people who borrowed the money have gone into hiding. Some no longer attend SACCO meetings, even when we call them, making it difficult to recover the funds,” SACCO leaders reported.

Adding to the challenges, some beneficiaries erroneously believe the funds are a government donation and thus not subject to repayment. “Whenever we ask them to pay back, some tell us that President Museveni gave them the money and therefore they have no obligation to return it,” leaders explained.

RDC Sseruwagi emphasized that the government would pursue all defaulters, including any leaders found negligent in their supervisory roles. “We are going to pursue all those who borrowed Emyooga funds and failed to repay, starting with you leaders. No one will be protected. These are revolving funds meant to benefit many people, not a few individuals,” he stated.

He urged beneficiaries to repay voluntarily to enable others in the community to access the program’s benefits. Innocent Arinaitwe, the Emyooga focal person for Greater Masaka, highlighted that Lwemiyaga County received Shs570 million, with members borrowing a total of Shs667 million. However, only about Shs66 million has been recovered, leaving a substantial outstanding balance of over Shs600 million.

Some SACCO leaders pointed to insufficient sensitization and operational hurdles, such as SACCO accounts being managed remotely, as contributing factors to the repayment issues.

The Emyooga initiative was established by the government to provide capital to organized groups, fostering savings and enterprise development to boost household incomes.

This report is based on information from Nile Post.