Early this month, Lt. Gen. Kale Kayihura ordered an investigation into management of funds in the PSAL and also forced them out of the police premises.
Top police officers managing two parallel savings and credit cooperative organisations in the Force are embroiled in an acrimonious battle over clients, which may lead to loss of officers’ savings.
The Police has two parallel savings and credit associations: the Police Savings Association Limited (PSAL), which started 23 years ago by the officers, and Police Exodus Sacco (Exodus) that was started in 2007 under the guidance of the Inspector General of Police, Lt. Gen. Kale Kayihura.
Although both Saccos are independent of the Force, top members are accusing each other of using their offices to win over clients.
Police officers told Daily Monitor recently that some senior officers are forcing them to be members of Police Exodus, a new Sacco. “When we go to police human resource officers to seek approval letters from our employee as a requirement to get loans from other financial institutions, they tell us to first be members of Exodus Sacco to get the letters,” one officer said.
To become a member of Exodus, one has to part with Shs5,000 for membership and then having a minimum balance of Shs10,000 on an account every month.
Exodus chairman Asani Kasingye, who is also a Police Director for Interpol and Peace Support, refuted the claims, saying officers were just advised on how to get low interest rate loans of one per cent compared to the 24 per cent charged by commercial banks.
PSAL has the biggest number of clients and charges its members an interest rate of 12 per cent.