One of Uganda’s dailies today reported that the leadership of Wazalendo SACCO (WSACC0) had proposed transfer of shs 6.1 billion to a pool account sparking a storm during the Sacco’s 15th Annual General Meeting held on March 12, 2021. It was also reported that transfer of the money accumulated due to dead soldiers and others who had deserted the force, instead of giving it to the next of kin of the said members informed the alleged storm between junior and senior commanders during the meeting held at the Uganda Military Engineering College in Lugazi.
However, addressing the media at Uganda Media Centre on Thurday, Wazalendo’s Chief Executive officer, Col Joseph Fred Onata, dismissed the reports as false and justified the creation of a special reserve fund for the money on members’ dormant accounts
He said the move was informed by the need to cut costs of running separate accounts which are dormant.
He said the proposal was made to the regional pre-AGM meetings and was agreed to.
“The members of the 15th AGM were therefore not surprised by the proposal since it had already been discussed. What the board of directors and management required from the AGM was the resolution and guidance on how to manage the fund once a special reserve fund is created in accordance with the law.”
According to Col Onata, it was agreed that the board of directors shall maintain a record of all the members whose funds are transferred to the special reserve fund and that the same will always be available whenever members resurface to claim them.
He dismissed as false reports that all soldiers are obliged to contribute 10% of their monthly salary to the Sacco in addition to shares.
He said every member determines shares to buy, provided they are not more than a third of the total shares of the sacco. Each of the shares costs shs 15,000.
On claims of that the Board of Directors has overstayed in office, Onata explained that new office bearers would be elected by the next Annual General Meeting.
“It was not posibble to hold elections during the recently AGM since the numbers were still restricted to only 200 delegates,” Col Onata said adding that “Our AGM brings more than 400 delegates and we were supposed to hold one and hold election between March 25 and 26 2020 but we were affected by the Covid lockdown which was imposed on March 18. We can only hold elections in an AGM attended by all delegates.”
He said the WSACCO leadership had sought advice and the “Registrar granted an extension of term for the current Board of Directors until when it is feasible to carry out elections.”
Wazalendo Sacco is the the biggest savings and cooperative society in Uganda and the sixth in Africa in terms of membership. It has over 80,000 members, shs213 billion share capital, shs180.5 billion in savings and shs388 billion loaned out to members.
“So many SACCOs have been formed in Uganda and so many have collapsed. WSACCO has made these achievements in just over the 15 years of our existence. This growth is not by chance but due to clear headed and honest leadership that has been able to build the confidence, trust and loyalty of members towards the services of the SACCO,” said Col Joseph Onata.