Members of Parliament Advocate for Enhanced Banking Access under the Parish Development Model (PDM) Program
In a session on Wednesday, November 22, 2023, lawmakers urged for increased accessibility to financial institutions to facilitate the disbursement of funds to beneficiaries of the Parish Development Model (PDM) program.
During the debate on the Report of the Committee on Public Service and Local Government concerning the status of the Parish Development Model implementation, MPs emphasized the need for improved access to banking services to boost the success of the program’s third pillar, which focuses on financial inclusion by expanding access to financial products and services.
Hon. Bosco Okiror (NRM, Usuk County) pointed out that the absence of financial institutions, such as banks, in districts to the North of the Teso sub-region, like Kapelebyong, Amuria, and Katakwi, hindered the effective implementation of the PDM.
“There is no bank in the vicinity of the residents of these areas, and people have to trek to neighboring districts like Soroti to access money,” Okiror said.
Hon. Florence Nebanda, the Woman representative of Butaleja District, highlighted the lack of banking institutions in her district, requiring residents to travel to Mbale district to receive funds.
“And for those who manage to access the bank, they find a lot of red tape, which causes frustration. There is a need to engage the banks more to provide faster services to the beneficiaries,” Nebanda stated.
Hon. Jennifer Driwaru (NRM, Maracha District) revealed that beneficiaries often had to spend nights in neighboring Arua and Koboko districts, waiting to receive money.
Speaker Anita Among advised the Minister for Local Government to advocate for mobile banking services in districts without established banking institutions.
“You must deal with banks that can take money to the beneficiaries to help them avoid the long treks and spending nights at the verandas of banks,” Among suggested.
Committee Chairperson Hon. Martin Ojara Mapenduzi mentioned that some banks had provided gadgets to SACCOS registered under the program to streamline processes.
“In August 2023, Postbank developed the Wendi platform as a mobile wallet to enable beneficiaries to access funds without going to the bank. Other banks had also developed applications for PDM, and some were already rolling them out,” Mapenduzi said.
He noted that participating banks had agreements with the government to provide easy access to financial support by integrating their systems with those of PDM, where, in return, banks would charge some fees to realize a profit.
He added that the presidential directive stating that all PDM services are free and beneficiaries should receive the entire Shs1 million left the banks demotivated.
“There should be an engagement between the government [Ministry of Finance and Ministry of Local Government] and the banking institutions to address concerns arising from departure from the earlier terms and conditions with the banks,” reads a recommendation in the Committee report.
Hon. Peter Ocen (Ind., Kole South County) proposed facilitating parish chiefs and sub-county chiefs to tackle cases of extortion from beneficiaries for services.
Hon. Laura Kanushu (NRM, PWD Representative) and Hon. Akol Anthony (FDC, Kilak North County) suggested intensive mindset change activities to guide beneficiaries on the appropriate utilization of PDM funds.
The Minister for Local Government, Hon. Raphael Magyezi, assured that he would present a comprehensive report to Parliament every six months on the performance of the PDM program.
