Soroti Resident City Commissioner Peter Pex Paak has called for the arrest of individuals who have defaulted on their Emyooga loans. Paak made this announcement during a meeting on August 13, 2024, held at the Soroti City Council offices. The meeting was attended by representatives from various Emyooga Savings and Credit Cooperative Organizations (SACCOs) from Soroti City East and West divisions.
Paak expressed frustration over the low repayment rates of Emyooga loans. He noted that some beneficiaries have the financial means to repay their loans but have ignored repayment reminders. This issue has been exacerbated by claims from some beneficiaries that the funds were a gift from the President, rather than a loan to be repaid.
The RCC criticized Emyooga SACCO executives for failing to follow proper procedures and for not setting a good example by repaying their own loans. Paak argued that the non-repayment of these loans undermines efforts to enforce loan recovery. He emphasized that the Emyooga funds are intended to be a revolving fund, meaning that non-repayment affects the ability of others to benefit from the program.
Paak announced plans to prioritize the arrest of those who first benefited from the Emyooga funds in 2020 but have not yet repaid their loans. He indicated that the enforcement actions will focus initially on SACCO executives, who are expected to settle their loans before recovery efforts are expanded to other defaulters.
The RCC also addressed concerns about environmental and administrative issues at the dumpsite. He explained that the land available for waste disposal is less than documented, and some areas have been encroached upon. Paak warned that those occupying the land need to vacate to avoid further actions.
George William Tukei, the Soroti City Commercial Officer, praised the government for providing additional funding to well-performing SACCOs. Tukei reported that over one billion Ugandan Shillings has been allocated to 36 SACCOs, benefiting more than 600,000 people, with 564 million Shillings already recovered. He encouraged underperforming SACCOs to learn from successful ones to improve their performance and qualify for additional funding.
Tukei outlined the criteria for receiving additional funds, which include effective fund management, performance in loan distribution and recovery, and having strong governance structures.
Reactions to Paak’s call for arrests were mixed. Paul Eurien, Chairperson of the Soroti City East Division Youth Leaders SACCO, suggested that arresting defaulters might not be the best solution. He proposed that further discussions with defaulters and a clear deadline for repayment should be considered before resorting to arrests.
Godwin Okiria, Secretary of the Soroti City West Taxi Operators, supported the idea of arresting defaulters, believing it could help recover funds. Okiria noted that some members view the money as a handout rather than a loan and hoped that enforcement measures would address this issue.
The effectiveness of Paak’s enforcement strategy remains to be seen, as previous threats of arrest have not always been carried out.
