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Government Urged to Form Tougher Laws for Cooperative Loan Defaulters

Founder Members of Nyarubanga Savings and Credit Ltd

Cooperative operators in Mbarara district have asked parliament and President Yoweri Museveni to facilitate stronger laws governing SACCOs, see http://compuaprende.com/components/com_community/templates/jomsocial/layouts/multiprofile.update.php associations and cooperatives.

The Chairman Nyarubanga Twimukye Co-operative Savings and credit Society Ltd Mr. Baryomunsi Godfrey made the call yesterday as they marked their 33rd anniversary.

He said the call for tougher laws has been necessitated by the increasing number of loan defaulters who cripple the works of the associations.

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“My call to the president is that SACCOs have been talked about for a long time and our MPs are not listening to us as voters. When you look at the laws, malady they make it difficult for us to be able to retrieve money from defaulters,” he said, adding that many groups had suffered and closed because of defaulters.

Even in his SACCO that has over 1000 members, he said there have been elements that took advantage of the weak laws to disappear with the group’s resources.

“I am speaking on behalf of Nyarubanga Cooperative but there are so many cooperatives which have closed because of weak laws;  We therefore ask government to give is new and more effective laws that will make it harder for defaulters.”

The 33 year old Nyarubanga Cooperative, Baryomunsi, has despite such huddled managed to survive and put up a number of development projects such as building Nyarubaganga Vocational School in 2014 the only known secondary school equipping students with extra skills.

Speaking at the event, Mbarara RDC Capt. Martha Asiimwe was impressed by the Cooperative for improving people’s saving culture and equipping students with skills.

 

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