Written By |
By Joshua Nahamya
Mbarara City
The State House Anti-Corruption Unit (SHACU) has launched investigations into the alleged mismanagement of Shs 65 million sent by President Yoweri Museveni to support vendors under the Mbarara Central Market SACCO. The probe comes just days before the President is expected to campaign in Mbarara City on December 1, 2025, as part of his Ankole region tour.
Vendors Demand Answers Over Missing Funds
For years, members of the SACCO have repeatedly petitioned government authorities— including the Town Clerk’s office and the Resident City Commissioner—over missing savings and alleged embezzlement by former SACCO leaders. They have demanded a forensic audit, accusing previous leaders of misappropriating both their savings and government grants. The SACCO has reportedly been struggling for years, with members abandoning savings due to mismanagement and failed loan recoveries.
According to the 2022/2023 external audit, the SACCO is owed Shs 91.1 million in unpaid loans dating back to 2014. Auditors further revealed poor financial management practices, including keeping large amounts of cash in the SACCO office instead of depositing it in the bank.
Former Leaders Implicated
Those implicated in earlier audits include: Muhammad Nyombi, former SACCO Chairperson, Hope Kyokunda, SACCO Manager
They are accused of mismanaging more than Shs 39.4 million, while the SACCO failed to recover additional loans disbursed to members.
When the new leadership assumed office in August 2024, they reportedly found only Shs 680,000 in the safe and Shs 170,000 in the bank.
Government Grants Unaccounted For
Assistant Resident City Commissioner (ARCC) Polly Katwire previously confirmed that the Office of the President planned an independent audit into the missing:
A total of Shs 101.2 million remains unaccounted for.
Mbarara Central Market Vendors' SACCO Offices. [Photo: Joshua Nahamya]
SHACU Launches Fresh Investigation
On Tuesday, a SHACU team led by Samuel Ssebikari, Principal Legal Officer, officially commenced investigations into the missing funds.
Ssebikari instructed the SACCO leadership to file a fresh petition to the President’s Office to support the probe.
“We want to know where the Shs 65 million sent by the President went. Some accountants disappeared with the money and have not been seen to date,”
Ssebikari said.
He added that a criminal file has been opened and suspects will be arrested.
“We are not here because of politics. We are here to investigate theft. Whoever touched the President’s money will be arrested,” he emphasized. Ssebikari urged members who saved money or borrowed from the SACCO to record statements to support investigations.
Concerns Over Duplicate SACCO Registration
During the meeting, it emerged that a parallel SACCO—Mbarara Central Market Vendors’ Savings and Credit Cooperative Ltd—had been quietly registered and submitted to the President’s Office for funding, sparking confusion among vendors. Market Association Chairperson Emmanuel Muhumuza demanded an investigation into how the second SACCO was registered.
SHACU pledged to verify both SACCO records with the Registrar of Cooperatives before any further government support is approved.
Vendor Reactions and Appeals
Several members expressed frustration:
Background on the SACCO
Registered in 2011, Mbarara Central Market SACCO had, by December 31, 2023: