Minister Alero Warns Beneficiaries That PDM Funds Must Be Repaid

The State Minister for Cooperatives, Alero Tom Aza, has firmly warned Ugandans against treating funds disbursed under the Parish Development Model (PDM) as free government gifts. Speaking to Rukungiri District PDM SACCO chairpersons, cooperative leaders, and bank managers at Hotel Heritage in Rukungiri Municipality, Minister Alero stressed that the initiative relies strictly on repayment to sustain its revolving nature.

He emphasized that the financial intervention is designed to provide capital for productive economic activities rather than serve as a permanent handout. Beneficiaries are required to use the money responsibly to expand their businesses and improve household standards of living.

According to the minister, diverting funds to unproductive uses undermines the core objectives of the poverty alleviation program and deprives other community members of a chance to benefit from subsequent lending cycles. He urged everyone who has received the capital to ensure timely repayment.

Echoing similar sentiments, the Registrar of Cooperatives, Mr. Bob Barigye, noted that the success of the nationwide initiative depends heavily on proper capital management. The PDM is structured to transition households from subsistence farming into the formal money economy through parish-level SACCOs.

Providing a local update during the engagement, Rukungiri District Senior Commercial Officer Caroline Atuheire revealed that the district has received more than Shs 30 billion. She noted that the disbursed funds are actively transforming local communities and urged recipients to utilize the capital correctly to achieve lasting economic impact.

The Parish Development Model remains a cornerstone of government efforts to uplift the 39 percent of Ugandan households still engaged in subsistence production.

Read more about this story in the Daily Monitor.