{"id":49978,"date":"2023-05-28T10:54:48","date_gmt":"2023-05-28T10:54:48","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss"},"modified":"2023-05-28T12:16:31","modified_gmt":"2023-05-28T12:16:31","slug":"micro-finance-support-drops-axe-on-staff-after-shs50b-loss","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss","title":{"rendered":"Micro Finance Support drops axe on staff after Shs50b loss"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>At least twelve members of staff of the Micro Finance Support Centre (MFSC), some at senior managerial level, have been suspended as an inquest into a Shs50 billion loss to dubious loans gathers pace.<\/p>\n

The suspended staff are accused of having colluded across departments and worked in syndicate to facilitate the processing and approval of loans that would not have been approved if the MFSC\u2019s processes had been followed.<\/p>\n

\u201cWe have suspended about 12 people, including some senior staff, including heads of departments, but we are still investigating,\u201d Mr Peter Mujuni, MFSC\u2019s executive director, told Monitor, adding, \u201cWe have suspended (them) as we investigate deeper. We suspend as we review who did not do what, or who failed to do what he was supposed to do.\u201d<\/p>\n

Monitor learnt that the decision to suspend the errant staff was precipitated by an internal investigation that unearthed the syndicated actions that led to the approval of the loans.<\/p>\n

Mr Mujuni blamed the dubious loans on failure by some of the suspended staff to play by the book.<\/p>\n

\u201cThe approver relies on the assurances of the different people who are involved and there are so many stages in the loan process. Usually we ask, did the valuer write an evaluation report? Did someone go and verify the report of the valuer? Did another person review?\u201d he disclosed, adding, \u201cThe approver looks at the assurances of about six different people at six different stages before he approves.\u201d<\/p>\n

Monitor has established that the suspended staff were from the legal, loans and valuation departments of the centre. They stand accused of forgery and utterance of false documents.<\/p>\n

Many of the land titles, valuation reports and in some cases audited books of accounts, all of which are relevant to loans\u2019 application processes, were found to have been forged for fictitious purposes.<\/p>\n

\u201cTeams that were sent out to carry out due diligence, the evaluation teams and the credit teams all arrived at the conclusion that most of the land titles that had been presented as collateral for loans were genuine whereas some of them were not. In other cases, the land was said to be existent when it in actual sense did not exist,\u201d our source revealed.<\/p>\n

Some valuation reports that were used for some of the loans were found to have been forged. The certified borrowers whose reports MFSC relies on to approve loans denied having authored the reports that had been used to process the loans.<\/p>\n

The internal investigation also revealed that some of the land that was used as collateral had encumbrances such as family burial grounds or squatters.<\/p>\n

In other cases, it was discovered that the land was not as big as had been indicated, was located in swamps and wetlands or simply did not exist.<\/p>\n

Some members of staff, however, accused MFSC\u2019s top brass of having effected the suspensions in a selective manner.<\/p>\n

A manager, who until recently headed the centre\u2019s Nakasero Zonal branch office and is accused of having engineered most of the dubious applications, is alleged to have simply been transferred to the Jinja Zonal office.<\/p>\n

\u201cThere was disciplinary action against him. He is not there. He was suspended. He is part of the group that was suspended so that we can dig deeper and see what exactly went wrong,\u201d Mr Mujuni told Monitor.<\/p>\n

It was not possible to establish the extent of the damage caused by the dubious loans, but sources at MFSC put the level of risk that the centre has been exposed to at within the region of Shs50 billion.<\/p>\n

In his latest report, Auditor General John Muwanga raised the red flag over MFSC\u2019s management of loans. Mr Muwanga\u2019s report revealed that Shs7.8 billion was disbursed to 252 unregistered savings and credit cooperative societies, which exposed public resources to the risk of loss.<\/p>\n

The report also pointed out that the centre had in the same Financial Year 2020\/2021, written off 167 loans amounting to Shs4.6 billion. The number of loans written off over the years now stands at Shs27.5 billion.<\/p>\n

Sources at MFSC have since indicated that the dubious loans for which staff have since been suspended may end up being written off, leading to further loss of public funds. Mr Mujuni was quick to rule out that possibility.<\/p>\n

\u201cIt is not like someone has run away with the money and we have lost it. Those who got the loans are here. We have their collateral, which we can sell to recover the money,\u201d he said, adding, \u201cWhere the collateral is not good enough we still can work with them to either get us another collateral. Where not possible, we can find other ways of recovering our money.\u201d<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. At least twelve members of staff of the Micro Finance Support Centre (MFSC), some at senior managerial level, have been suspended as an inquest into a Shs50 billion loss to dubious loans gathers pace. The suspended staff are accused of having colluded across departments and worked in syndicate to facilitate the processing […]<\/p>\n","protected":false},"author":84,"featured_media":49976,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[233,240,234],"class_list":["post-49978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nMicro Finance Support drops axe on staff after Shs50b loss - Uganda<\/title>\n<meta name=\"description\" content=\"At least twelve members of staff of the Micro Finance Support Centre (MFSC), some at senior managerial level, have been ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Micro Finance Support drops axe on staff after Shs50b loss\" \/>\n<meta property=\"og:description\" content=\"At least twelve members of staff of the Micro Finance Support Centre (MFSC), some at senior managerial level, have been ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-28T10:54:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-28T12:16:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2023\/05\/sm_1685259917.121495.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"794\" \/>\n\t<meta property=\"og:image:height\" content=\"529\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Micro Finance Support drops axe on staff after Shs50b loss\",\"datePublished\":\"2023-05-28T10:54:48+00:00\",\"dateModified\":\"2023-05-28T12:16:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss\"},\"wordCount\":804,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2023\/05\/sm_1685259917.121495.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/micro-finance-support-drops-axe-on-staff-after-shs50b-loss\",\"name\":\"Micro Finance Support drops axe on staff after Shs50b loss - 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