Leaders of the Ugandan government’s Microfinance Support Centre (MSC) recently were released on bail after being held in prison on charges relating to the theft of UGX 10.8 billion (USD 2.9 million) that had been supplied by the Ugandan government for disbursal to the Uganda Teachers’ Cooperative Savings and Credit Union (UTC). The allegations consist of embezzlement and conspiracy to defraud, which carry maximum prison terms of 14 years and 3 years, respectively. During a recent joint court appearance, the accused denied all charges against them.
Three staff members of MSC are involved as is Joan Asiimwe Baryaruha, a teacher and UTC member. The MSC employees are Executive Director John Peter Mujuni; John Mwebembezi, the organization’s head of finance and administration; and Julia Birungi, an assistant credit officer. Ms Baryaruha organized a group of teachers to form UTC in 2010. Since then, the government issued several disbursements to MSC that were intended for UTC. These are the funds that are now missing.
The stated goal of MSC is to assist low-income Ugandans by managing government funds for lenders as well as directly to small and medium-sized enterprises. For the fiscal year ending June 2020, MSC was allocated UGX 55 billion (USD 14.8 million).
By Kate Finster, Research Associate
Sources and Additional Resources
New Vision article on fraud charges against MSC executives
https://www.newvision.co.ug/news/1526644/microfinance-bosses-charged-sh10b-saccos-funds-saga
New Vision article on questioning of MSC executives regarding fraud
https://www.newvision.co.ug/news/1527412/govt-big-shots-linked-microfinance-funds-saga
New Vision article on MSC executives granted bail
https://www.newvision.co.ug/news/1526851/sh10b-saccos-fund-saga-microfinance-bosses-granted-bail
New Vision article on MSC lending
https://www.newvision.co.ug/news/1525313/loan-requests-overwhelm-microfinance-support-centre
MSC homepage
http://demo.msc.co.ug
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