Lutsheshe County MP, Isaac Modoi, has expressed concerns regarding the clarity of the payback process for Parish Development Model (PDM) funds. Even though it was previously agreed in Cabinet that beneficiaries should refund the money, questions have arisen regarding the precise payback period.
Legislators from the Public Service and Local Government Committee of Parliament, along with the local government state minister, Victoria Rusoke, engaged in discussions but failed to reach a consensus on the appropriate payback period for PDM funds. By the end of the session on Tuesday, October 24, it was apparent that there was a widespread opinion that President Yoweri Kaguta Museveni needed to provide clarity on this matter.
Isaac Modoi, the MP for Lutsheshe County, highlighted that the payback process was proving to be unclear, even though it had been discussed in Cabinet that beneficiaries should repay the funds. He expressed concern, saying, “If we can fail to understand, imagine down there.”
There was a lack of consensus among legislators on the recommended payback period. Some believed that their constituents were supposed to repay the funds within 24 months, while others referenced the President as having suggested at least 36 months. For instance, Christine Apolot, the committee vice chair and Kumi Woman MP, informed the assembly that she had been advising her constituents to repay the money after two years.
During the session, Kweri County MP, Stephen Mugole, proposed creating an addendum for those willing to pay back the funds. Dodoth West County MP Ben Baatom mentioned that President Museveni’s statements on the payback period had been circulating on social media, stating, “The President said if you can invest that money two or three times, you can still do it, but it should be paid after two years.”
Bulamogi County MP Sanon Bwire emphasized that they did not want confrontational language if the local government chose to take a different approach. Bwire asserted that the President’s message was clear: “Get the money, and after 24 months of a grace period, one can pay back.” Bwire expressed concerns that poor individuals had been ill-advised about taking the money, giving the rich an advantage in obtaining funds.
Buzaaya County MP Martin Muzaale mentioned that most people had assumed a grace period of 24 months based on the President’s statements. Muzaale argued that if the President had changed his stance, he should communicate it, as Cabinet decisions could have significant repercussions. He also noted that the President had referred to a payback period of 36 months, not two years.
Ruth Lematia, Ayivu Division East MP, revealed that the President had indicated that people should not be harassed and should be allowed to repay the funds within two years. Lematia pointed out that some constituents hardly possessed one million shillings, with some having as little as 500 or 300 shillings.
Victoria Rusoke, the local government state minister, explained that many individuals who had made a profit were eager to repay the funds. However, PDM guidelines that required payment after two years had prevented many from returning the initial one million shillings.
The MPs expressed their conviction that the recent development, which encouraged those capable of repaying the funds to do so, would confuse those who had received the money, believing that repayment was due after two years. They argued that the information provided by PDM was not straightforward and believed that the President, who had initially announced a two-year payback period, should clarify that those able to pay back could do so before the two years elapsed.
Rusoke noted that there was a misconception that no installments were allowed until the end of the two-year period, which she regarded as incorrect. The PDM secretariat would create a document allowing those comfortable with early repayment to do so.
Ojara Mapenduzi, the committee chair and Baryebe-Layibi Division MP, clarified that beneficiaries had a grace period of two years, but after that, repayments should take place, with the payback period not exceeding 36 months. He emphasized that individuals could conduct their businesses during the initial 24 months but should ensure repayment in the third year.
Galabuzi Ssozi, the coordinator of the PDM secretariat, suggested the need to interpret the President’s message correctly and highlighted that it was essential for the President to resolve the confusion.
Rusoke added that there were individuals making quick profits who wanted to repay, and they should be allowed to do so before the 24-month period lapsed. Additionally, Galabuzi stated that the PDM might evolve into a parish or community bank, aiming to address community challenges related to credit and capital for production.
The session commenced late, as many legislators arrived after a delay. Rusoke and Bugweri MP Rachel Magoola, expected to present, waited for nearly 30 minutes before the official discussion began.
