Deputy Speaker, Thomas Tayebwa has challenged the Parliamentary Saving and Credit Cooperative Organisation (SACCO) to consider establishing a bank, following growth of the organisation’s assets.
He made the call during the 19th Annual General Meeting (AGM) of the SACCO on Friday, 10 November 2023.
According to the SACCO’s Board Chairperson, Hon. Robert Migadde, the organisation’s assets have increased to Shs67 billion this year from Shs47 billion in 2022.
Tayebwa said that the growth is impressive, adding that in the next five years, the SACCO management should target to own a bank.
“We can make it; I have seen some of the banks where you are fixing your money, they do not have that money, I know them. So why can’t we make it,” he said.
Tayebwa advised that to start a bank, the SACCO would only be required to acquire a holding company that would own the bank while the SACCO continues its operations.
“Each one of us will have a sense of ownership. I am now going to pick more interest especially on the investment aspect and see how best we can support the members,” he said.
He however, expressed disappointment with the poor savings culture among Members of Parliament (MPs) and staff and called on them to embrace a saving culture.
The SACCO will soon start investing in government bonds following adoption of the Board recommendation during the AGM.
“As the SACCO continues to accumulate surplus cash, the Board recommends that the SACCO be allowed to invest in government bonds which currently attract over 17 per cent interest per annum for 15 to 20 years, aware that interest is paid half year,” Migadde said.
He added that the Board has invested surplus cash in fixed deposits with commercial banks, unit trusts and land.
“As of June 2023, the SACCO had Shs12 billion invested in fixed deposits, Shs10 billion in unit trusts andShs8.2 billion in land,” said Migadde.
He also reported that the SACCO’s savings are now Shs47 billion up from Shs29 billion in 2022, while the loans are now at Shs33 billion from Shs25 billion in 2022.
“That credit goes to you MPs, former MPs and staff. The fund has continued to grow,” Migadde said.
The SACCO also accumulated Shs2.1 billion in capital reserves from the tax waiver savings after the cooperative led all SACCOs to obtain a tax waiver in 2018.
The Board Chairperson National Social Security Fund, Peter Kimbowa tipped the SACCO leadership on mobilising funding from international organisations to ensure sustainability.
“The world of sustainable financing last year had Euros 500 billion to support entities like yours that are into sustainability. Africa only got eight per cent of that; Why? We do not know how to write proposals and right now, we do not even know that this SACCO can get money from outside members,” said Kimbowa.
The SACCO boasts of a membership of 1,504 which includes incumbent MPs, former MPs and staff of Parliament.
