MBALE– The Microfinance Support Centre has embarked on reviving collapsed savings and credit co-operative societies (SACCOs) in eastern and northern region.
Mr. James Muhwezi, the manager business development services and collaboration during the consultation meeting at Mbale district headquarters said they started on the mission to revival all collapsed Saccos.
“We want to revive and empower Saccos that have collapsed due to poor governance and failure by members to appreciate the rules, which give them,” he said.
Mr Bernard Mujansi, the LCV chairman Mbale district, attributed the collapse of Saccos to poor management.
More than Shs1 billion in government grants and savings was lost in Busoga following the winding up of over 150 Saccos.
Mr Ivan Kigere, the field officer of Busoga Saccos Union, said most Saccos were compelled to fold due to financial mismanagement and failure by the government to provide capital.
The Saccos were formed after 2007 following government’s decision to scrap the Entandikwa loan scheme in which billions of taxpayers’ money that had been earmarked as a revolving fund.
According to Mr Kigere, only 351 Saccos out of 522 that had by the end of 2008 been registered with the union remain operational.