A damning report by the Auditor General has revealed significant irregularities in the disbursement of loans under Uganda’s Parish Development Model (PDM), amounting to fraudulent approvals worth Shs10.432 billion. The findings raise serious concerns over the management and effectiveness of the government’s flagship program aimed at boosting financial inclusion.
The review identified numerous cases where loans were approved multiple times for the same individuals or households. Among the key findings:
- 50 individuals with identical National Identification Numbers (NINs), names, and phone numbers received loans totaling Shs49.8 million.
- 800 individuals with matching NINs and names but different phone numbers were granted loans amounting to Shs795.2 million.
- 52 individuals with duplicate NINs but varying names and phone numbers received loans worth Shs50.72 million.
In total, 10,646 individuals were approved multiple times for loans, with disbursements totaling Shs10.432 billion to 5,710 households.
The report also highlights that loans worth Shs826 million were issued to 832 beneficiaries from unregistered enterprise groups, making loan recovery challenging in case of defaults.
Another violation involved the disbursement of Shs8.611 billion to 13,844 beneficiaries, each receiving less than Shs1 million, contrary to the PDM User Handbook, which caps the amount at Shs1 million per household.
These revelations point to significant weaknesses in oversight, undermining the PDM’s goal of transitioning subsistence households into the money economy.