The leadership of the Police’s Savings and Credit Cooperative Organization (SACCO) is looking for over 100 retirees with unpaid loans worth 1.2 billion Shillings.
The Chairman of the Police’s Exodus SACCO Wilson Omoding says a majority of the non-performing loans were taken by police officers who are now retired. Most of the loans, according to the Police force were issued in the last two years of service for the listed personnel, with the hope that even in retirement, the borrowers will be able to service the loans.
However, many abruptly stopped remitting the agreed amount while others paid some money but went silent as soon as they officially retired from the police force. In order to recover the loan money from the retirees, Omoding said they have involved the police management to track all the retirees with unpaid loans. The SACCO leadership has also written to some of the retirees.
“First of all, the non-performing loan is to a tune of 1.2 billion Shillings. We are reaching these officers to clear the loans they took. We gave management to follow up on these officers. We have already written to a number of them. we have asked the management to reach out to all these officers. They must clear the loans they took except for those who have died,” Omoding said.
Omoding revealed the challenge of unpaid loans at the SACCO’s annual general meeting held on Thursday at police headquarters in Naguru. The SACCO’s treasurer Eddy Ssekanjako said that the loan interest income grew from 2.79 billion Shillings in 2020 to 2.96 billion Shillings in 2021.
“Loan interest income has remained the main source of income contributing over 47 per cent of the total income. This is attributed mainly to the increased level of loan disbursement. There was also increased profit from the canteen (Exodus) from 750 million to 1.2 billion Shillings resulting from adequate internal control oversight exercised on canteen operations,” ASP Ssekanjako said.
Omoding further explained that in 2021, the SACCO leadership recruited 4,000 new members. But Omoding said there is still an information gap in regard to the SACCO’s operation a reason some police officers think the organisation does not meet their economic demands.
“The share capital grew from Shs5.8B in 2020 to Shs6.45B in 2021. The equity and reserve grew from Shs12.3 billion in 2020 to Shs18.3 billion in 2021 representing a 50 per cent growth,” SCP Omoding said.
The Director of Police Welfare and Production AIGP Andrew Sorowen faulted some police officers rush to MPs even on small matters that can be handled by police leadership. On several occasions, police officers have run to the media or MPs to express their dissatisfaction in regard to accessing their savings.
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