The Acting Inspector General of Police, Maj Gen Tumusiime Katsigazi is concerned by the increasing number of police officers deserting the force because of accruing loans.
Katsigazi, who assumed IGP roles on March 4, after his boss Martin Okoth Ochola’s contract expired said loan-related desertions are emanating from borrowing by impulse.
Katsigazi was speaking on Wednesday while addressing police officers during the force’s Exodus SACCO Annual General Meeting (AGM) at police headquarters.
“Loans have led to desertion. You borrow money and when they start cutting your salary, you realize you are left with only sh100,000. It can be a blessing if you have planned for it. It should have a plan before borrowing,” Maj Gen Katsigazi said.
Police’s Exodus SACCO had several issues before a new leadership team chaired by Senior Commissioner of Police –SCP Wilson Omoding was elected. The SACCO has gradually grown in savings and assets since 2020 when SCP Omoding and team took over.
However, SCP Omoding said that the SACCO still faces a challenge in meeting loan demands because of low savings and mass withdrawals of deposits. But Katsigazi believes that many police officers borrow money to please women or to compete with their neighbors.
SCP Omoding said despite a slight increase in total deposits from sh30.6bn in 2022 to sh31.7bn in 2023 translating to a 3.1 percent growth, the minimal deposits growth was largely influenced by a flexible savings withdrawal policy, enabling members to access portions of their savings during the year.
Exodus SACCO equity also saw growth, climbing from sh25.5bn in 2022 to sh35.2bn in 2023, representing a 38.1 percent increase. Also, SCP Omoding said the dividend per share rose from sh210 to sh348 marking a significant 65.7% growth while the share price remained stable at sh11,000 at the end of 2023.
Eddy Ssekanjako, the Exodus SACCO treasure further explained that they achieved another remarkable milestone with a net surplus for the year of sh4.96bn up from sh1.99bn in 2022, indicating a staggering 150.3% growth.
According to SCP Omoding and SP Ssekanjako, Exodus SACCO leadership exercised caution during the transition from the straight-line method to the reducing balance method of loan disbursement, enhancing our loan recovery processes to mitigate any adverse impact on interest income.
“With this in place, the SACCO has continued to maintain the interest rate of 14% for the loans advanced to its members and this continues to supplement your efforts towards achieving enhanced welfare as members whilst maintaining the solvency of the SACCO,” SP Ssekanjako said.
AIGP Charles Birungi, the director of welfare, production, and sports said low savings of police officers result from low salaries. According to AIGP Birungi, when salaries are enhanced in the future, Exodus SACCO members’ savings will also increase.
Maj Gen Katsigazi urged Exodus SACCO to emulate Wazalendo SACCO of Uganda People’s Defence Forces (UPDF) which now can give loans worth sh400m to members. Wazalendo SACCO’s liquidity and asset value is now more than sh950bn.
*Source -URN*
Related
Let others know by sharing
