President Yoweri Kaguta Museveni has warned exploitative moneylenders and individuals misusing funds under the Parish Development Model (PDM) emphasizing that the initiative aims to uplift the poor and integrate them into the money economy.
Speaking at a public rally at Mwizi Secondary School playgrounds in Rwampara East, Mbarara District, Museveni criticized the high-interest loan schemes that continue to trap Ugandans in debt.
“I was told moneylenders give you Shs 1 million, and every month you pay Shs 200,000. By the end of the year, you have paid Shs 4.5 million for someone who gave you only Shs 1 million. In PDM, we give you Shs 1 million, and after two years, you return Shs 1.2 million in a revolving cycle. Each year, the parish receives Shs 100 million, making a lasting impact,” he explained.
Last year, the Finance Minister, Matia Kasaija under the Tier 4 Microfinance Institutions and Money Lenders Act, Cap. 61 announced 2.8% per month or 33.6% per annum as the maximum interest rate lenders can impose on the borrowers however the moneylenders have kept a deaf ear on this directive.
The President urged Ugandans to safeguard PDM funds from corruption, warning that those involved in stealing or mismanaging the money will face severe consequences.
“I have heard of people stealing this PDM money. Why don’t you report these thieves? Each parish is receiving Shs 100 million. That money is meant to rescue you from moneylenders,” he stated, urging local communities to expose culprits.
During his address, which was part of a three-day performance assessment tour on wealth creation and the PDM in the Ankole subregion, Museveni assured the public that corrupt officials, including police officers who release suspects on bond, would be dealt with decisively.
Furthermore, the President warned beneficiaries against using PDM funds for unproductive activities such as alcohol consumption, cautioning that those who misuse the money would face imprisonment.
“Those who take PDM money and use it for drinking alcohol, we shall imprison them for 12 months. They will work for the government in prison by planting maize and cotton, and the government will earn from their labor,” he declared.
The Parish Development Model, introduced to boost wealth creation at the grassroots level, has faced challenges including mismanagement and non-repayment. Museveni’s aim is to ensure that the program benefits its intended recipients and does not fall prey to corruption or abuse.
