Walimu Cooperative Savings and Credit Union Limited will receive over shs7 billion in fulfillment of the presidential pledge of shs25 billon.
The State Minister for Finance David Bahati said that the money will be channeled from to the teachers’ SACCO from the Microfinance Support Centre.
“The resources that were supposed to go to the teachers’ Sacco went to Microfinance Support Centre on the account that it could be administered well there,” said Bahati.
He added that structures had since been put in pace under the Walimu SACCO capable of handling the money.
Bahati revealed that some of the money meant for the teachers’ SACCO had been lent to other institutions.
“We are in the process of transferring the money which was meant for the teachers. This can be done at the beginning of the next financial year,” Bahati added.
“What we need to understand now is how much was lent out of the money put under the Microfinance Support Centre and how much is available to be transferred to their Sacco,” Bahati said.
Minister of State for Primary Education Rosemary Seninde told the House that in financial years 2013/2014 and 2014/2015, approximately shs9.3 billion meant for Walimu Teachers Sacco had been ‘erroneously’ transferred to the Microfinance Support Centre.
Seninde added that between financial years 2015/2016 to 2019/2020, Government paid a total of shs20.3 billion to Walimu Teachers Sacco.
“If we include the money that went to the Microfinance Support Centre, the total the teachers should have received should be shs26.5 billion, even exceeding what was pledged. But because the money that went to Microfinance did not come to the teachers’ Sacco, they still demand about shs7.8 billion,” Seninde said.
She added that the Education and Finance ministries held a joint discussion with the Solicitor General who guided that the money had to be sent back to the teacher’s Sacco from the Microfinance Support Centre.
Government offered shs25 billion to the teachers’ Sacco to be paid over a five year period, with an aim of enabling teachers receive affordable credit financing but a total of shs4.3 billion was released to the Microfinance Support Centre in 2013/2014.
MPs on the Public Accounts Committee of Parliament, at the time [2015] directed that teachers interested in the funds should access the money through Micro-Finance Support Centre so as to ensure proper accountability.
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