THE Inspector General of Government is probing former Vice-President Dr. Speciosa Kazibwe over mismanagement of the government-owned Microfinance Support Centre.
In a letter to the finance ministry, the IGG wants Kazibwe to be suspended to pave way for investigations.
“We are still in the middle of investigations. This is an interim measure taken by the IGG in the course of investigations and should not be taken as a final decision,” said director for Ombudsman, David Makumbi.
Makumbi said the inspectorate opened investigations after receiving complaints about mismanagement of the centre.
“We are investigating a cross section of allegations and it is largely to do with mismanagement,” said Makumbi
He said the investigation does not centre on Kazibwe alone, but also on other managers at the centre.
“Generally, the centre is under investigation. The actual culprit will be named at a later point in the report,” he said.
The centre, which is key in the implementation of the Prosperity-for-All programme, is government-owned and was formed in 2001. The programme aims at transforming the rural economy through job creation and increase in household incomes. One of the programme is Rural Financial Services (RFS), whose objective is to develop a financial infrastructure at the sub-county level. The Government has over the years allocated billions of shillings to the centre to lend to rural groups at interest rates lower than those offered by commercial institutions. In the past, it has managed various micro credit programmes funded by the African Development Bank (ADB), including the Rural Microfinance Support Project, the credit component of the North West Smallholder Agricultural Development Project and the Government of Uganda Fund for Support to SACCOs. Currently, the centre is managing the Rural Income and Employment Enhancement Project by ADB and the Islamic Development Bank. The centre provides affordable credit through loan products that support the agricultural value chain namely production, value addition and marketing. The centre has got regional offices in Arua, Gulu, Soroti, Moroto, Mbale, Iganga, Kampala, Masaka, Mbarara, Kabale, Kabarole and Hoima districts.