Encouraged to save for economic empowerment

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The SACCO manger of BPFSACCO has encouraged the community members to learn to save for economic empowerment. He said after continued outcry of the community members of Busei who mentioned that they never prepared for Covid19 so they had not saved any thing. Thus highly affected by the Covid19 pandemic. He has encoured the community to join BPFSACCO. See the information about BPFSACCO below:

BUSEI PARISH FAMI SAVINGS AND CREDIT COOPERATIVE SOCIETY (BPFSACCO)

BYE- LAWS 2020

Introduction

Busei Parish Fami Savings and Credit Cooperative Society (BPFSACCO) is also referred to as Busei Parish FAMI SACCO. It is a savings and credit co-operative society in Uganda. It is an institutional Sacco composed of Ugandans from different parts of Uganda and mainly residing in any part of Eastern region of Uganda.  BPFSACCO was formed to eradicate poverty, motivate & build a better social –economic foundation for community members in the bondage of “poverty” the continued song that cuts across all sectors.

Through prayers and unity the Holy Spirit revealed that; Community members if guided and empowered have a high potential to start income generating project and prosper. Proverbs 10:4“Lazy People are soon poor; hard workers get rich. BPFSACCO it is purposed to ensure its members are prospering economically and helping them to achieve economic independence.  It is believed by some members that you cannot speak about developing without mentioning savings and proper utilization of money. The SACCO is a means through which People will help each other transform their economic transformation.

Vision: Empowered and transformed Community for sustainable development.

Motto:  Preparing for the future holistic Development

Mission: To increase and sustain better incomes through equipping the community with knowledge and awareness skills for the utilization of the available financial and non-financial resources to promote holistic transformation. 

Core Values: Team work, Integrity, Love, Transparency and Accountability.

Overall Goal: To promote holistic transformation through social economic empowerment, mobilizing savings and make loans to members at reasonable interest rates to improve their welfare. 

Objectives:

  1. To help members have a complete social, economic and spiritual transformation in their lives.
  2. To implement a positive self help training chain that will boost peoples spiritual and economic lives.
  3. To improve the economic wellbeing of those who have been delivered from bondage, the vulnerable and those in need of small funding to start simple but profitable business.
  4. To increase wealth by improving members economic and social conditions.
  5. To train members in income generating projects and how to start profitable business in order to prosper.

Formation

BFSACCO was formed by willing members of the organization who are supporting it with financial contributions. It is a form a business where a member is required to save his or her money for the purposes of making profits and also one can get a loan to start up a business or to clear school fees and pay it back with an interest of 3 %.

Membership

Membership is open irrespective of the nation, tribe, sex, race and political belief as long as he/she shall be of good repute, and meets all the requirements which qualify him/her to be a member and he/she is in agreement with the rules and regulations of BFSACCO. Considering that it is only human that everyone wants to develop or grow economically.

Members will be required to fill registration forms and attaché a copy of ID and passport photograph. Every member of the SACCO will have to contribute the following:

  1. Membership fee amounting to Ushs 20,000/=
  2. Annual subscription fee amounting to Ushs 50,000/=
  3. Savings; Members are encouraged to save at least Ushs 20,000/= per month.
  4. Each member is entitled to buy 3 shares at a cost of 20,000/= per share (60,000).

Each member is entitled to withdraw his/her savings at any time. However, at the end of the year, each member will be given back his/ her savings plus some interest on top of his/ her savings.

Qualification for membership of the BFSACCO

Membership application shall be presented to and approved by the Board before an applicant becomes registered. To qualify for membership a person must:

  • Have a big heart for the SACCO
  • Be honest and committed to the aims and objectives of the BFSACCO
  • Be a person who has not been convicted by a compact with offence involving moral turpitude court of law or has committed any other criminal offence.
  • Active members shall be subject to payment of membership fees as shall be determined by the General Assembly from time to time.
  • Membership shall also be tenable if a prospective member is eighteen years of age or above and of sound mind and not under the age of eighteen (18)

Bank Account

The Bank Account shall be opened by the SACCO in any financial institution or bank of its own choice. The SACCO members shall deposit or withdraw money from the Bank Account. The signatories to this account shall be the chairperson, Treasurer and Secretary of the Board and shall have the authority to deposit or withdraw money of the organization. However, a cheque shall be cashed if, and only shall have the secretary (Executive Director’s) signature endorsed to it who shall be the principle signatory.

BORROWING POWERS

Members of the board of directors shall have the power to borrow money in the name of the SACCO provided that such money borrowed shall be used for purposes of carrying out the activities of the SACCO and thereafter reports to the General Assembly.

LOANS

Loans: A member shall be considered for the loan if he/ she adheres the following conditions:

He/ shall be a registered member of BFSACCO

Loans will only be given to members who belong to savings and credit association at an interest rate of 3 % monthly.

A member shall be required to have completed three month subscription before being considered for the loan.

A member shall write an application letter giving a satisfactory explanation to the chairperson before recommended for the loan.

He/ She shall fill in the application issued to him/her by the treasurer of the association.

He/ she shall present two guarantors who should be fully paid up members of the association and they must counter sign the loan application.

The committee shall seek the opinion of other members of the organization including the Patron in case of a serious doubt of the person asking for the loan.

Loan must not exceed a three monthly income of the member in case it exceeds a security should be presented.

In case a member defaults the payment of the loan in a required period he or she shall give clear explanation or his security will be sold off to clear the loan.

In case the member and his/ her security cannot fetch the equivalent of the loan, then the two guarantors must repay the loan and interest.

In a situation where the loan beneficially and the guarantors defaults then the committee will forward the case to the board and if the board also fails to recover the money shall appeal to the court of law.

In case a member dies, resigns officially he/ she is entitled to his/her savings as calculated with effect from the date of assumption of savings.

SACCO’S SEAL

The SACCO shall have a seal to be used on any official documentation and against which a signature of any member of the Board shall be put. If not in use the seal shall be under lock and keys kept by the secretary. The stamp shall be the organization’s seal.

STAFF AND PAID EMPLOYEES.

The Association shall employ and dismiss staff as shall be necessary.

The SACCO shall be open to staff, employees and/or volunteers coming from within and abroad willing and able to contribute to its objectives.

Every staff members shall sign a declaration accepting the statement of faith of the organization, a conflict of interest and confidentiality policy regarding the organization. They will also sign employment contracts.

SIGNING OF DOCUMENTS

The Executive Director shall be the principal signatory for all the cheques drawn by the organization. The signature of the Treasurer or the Chairperson as shall be decided by the Board will be second on the cheques.

All the cheques drawn by the organization shall be signed by the Executive Director and any of the two people mentioned above (Treasurer or Chairperson) in order to be acceptable and honored by the bank(s).

The Executive Director and/or Board of Director’s chairperson shall sign all important documents of the organization such as contracts, memoranda of understanding etc.

SACCO INVESTMENTS

The SACCO team developed multipurpose membership investments such as:

Fixed Savings investment – This is one of the fixed savings that comes with a 2 % interest per month as per agreed terms. The investment is attracting members because it is upon a member to identify a special long term need they would want to finance with their savings without having to borrow. The savings are withdrawn plus the interests at the end of the year or agreed period.

Welfare insurance savings investment – It is aninsurancefeewhere members contribute an entry fee of 50,000/= and renewed annually. This money is used to help members in times of joy and sorrow.  In times of joy the insurance covers the following activities: Introduction, weddings and Graduations. While in times of sorrow the insurance covers the SACCO member, spouse, Biological children, Biological Parents on both sides and any two close relatives.

Special Development investment: This is a monthly investmentwhere members contribute 20,000/= monthly and this money is given to a member in a need of development. This investment is growing a new members continue joining on daily basis. This is because of the testimony given by members developed. Only members in savings and credit association are registered under special development investment.

The founder members graduated from small to bigger loans and their business grow hence increased incomes for the SACCO & for members as well. Other investments offered by the BPFSACCO include: Savings and credit Association, Lively hood, Agriculture, business, Salary and Emergency loans.

Governance and management

The SACCO will be managed and governed by four separate and different organs namely:

  • General Assembly: – is composed of all fully paid up members of the SACCO of share holders and is the supreme authority of the Co-operative.
  • The Board of directors: – is composed of 5-9 members with Women and Youth representatives to oversee the affairs of the of the SACCO on behalf of its general membership.
  • Supervisory/Audit committee: – is composed of two or three People elected by AGM charged with ensuring that the financial affairs of the organization are handled with prudence, due to care and transparence.
  • Management staff or SACCO employees:- These are professional people hired by the committee and paid a salary or commission for their services.

Roles of the organs of the SACCO.

The AGM approves the mission/vision and objectives of the BPFSACCO and undertakes any other general business deemed necessary for the good of the cooperative. The members through the AGM will regularly elect the SACCO’S Board/supervisory committee, which will:

  • Conduct membership recruitment
  • Direct the business of the SACCO and report to the members through AGMs.
  • To oversee and supervise management staff who are responsible for handling daily or routine operations of the SACCO.
  • Encourage members to save money monthly.
  • Encourage members to pay back loans.
  • To oversee all operations and make policies to guide the SACCO.
  • The Audit/supervisory committee is charged with ensuring that the financial affairs of the organization are handled well with transparency.
  • Management staff or SACCO employees:- are professional people hired by the committee and paid a salary or commission to carry out day to day activities of the SACCO. 

Jeremiah 29:11”For I know the plans I have for you, declares the Lord, Plans to prosper you and not to harm you, plans to give you hope and future. By starting up FAMI Savings and credit we expect God to fulfill the plans he has for us and to receive the Promised God’s blessings. Until we will reach at the level to lend many nations but not to borrow from them.(Deutro 28:12). BPFSACCO looks up to its mission for providing those in the bondage of poverty and other members with the support needed to engage in income generating activities for the improvement of their social –economic status.

BPFSACCO is now seven years of existence and has grown in membership, savings, shares and loan portfolio. The growth is attributed to members continued commitment to savings, buying shares and accessing credit.  

BPFSAACO BOARD & SUPERVISORY/AUDIT COMMITTEE.

  1. Tigawalana Misaki          Chairperson
  2. Nambi Suzan                 Vice Chairperson
  3. Rev.Samson Basome     Member/  Executive Director
  4. Kusasira Julia                 Secretary
  5. Kiyuba Harriet               Treasurer
  6. Kimumwe Erunasan        member
  7. Nagudi  Sarah                 Member
  8. Phoebe Menya                Member

The BOARD & Supervisory/ audit committee they have ensured prudent judgment and effective decision making on matters of the SACCO. They are committed and devoted to their duties at the SACCO. The BOARD has invested time in increasing the membership through door to door marketing of the SACCO. The door to door marketing strategy increased BPFSACCO membership from 100 members in December, 2018 to 350 members in April, 2020.   

 

 

 

 

 

 

 

 

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