EDITOR
The former Manager of Kagongo Rural Development SACCO in Ibanda Municipality, Mr. Kutesa Nicholas, has been convicted and sentenced to one year and seven months in Luzira Government Prison for embezzling over Shs 200 million from the Sacco.
The sentence was handed down by the Anti-Corruption Court in Kampala on June 12, 2025. Dr. Amooti Kaguna, the Chairperson of Kagongo Rural Development SACCO, confirmed the development and revealed he personally attended the court session.
According to Dr. Kaguna, the embezzlement occurred between 2017 and 2022, during the COVID-19 lockdown when movement was restricted. Kutesa reportedly exploited the newly introduced Corbis/Yoo electronic money system, diverting client deposits from the Sacco’s office phone to his personal mobile number, from which he withdrew the funds.
The theft drove the Sacco into bankruptcy and eventually forced its closure.
As part of his sentence, Kutesa was also ordered to refund the entire Shs 200 million and has been banned from holding any public office for 10 years after completing his prison term.
Dr. Kaguna blamed the Sacco’s collapse on the failure of internal controls, citing that some members of the supervisory, loans, and finance monitoring committees had become loan defaulters themselves and failed to enforce proper oversight.
Responding to the incident, Ibanda Resident District Commissioner (RDC) Mbetegyerize Godfrey urged Sacco board members across the district to strengthen their monitoring and inspection efforts, particularly in transactions involving electronic money systems.
He emphasized the need for vigilance over key signatories including the secretary, treasurer, board chairperson, and Sacco managers.
