Legislators in Uganda are seeking clarity on the repayment period for funds provided through the Parish Development Model (PDM), a government initiative aimed at boosting rural development. The confusion stems from differing interpretations of the payback period. While some MPs cite the President stating a 24-month grace period, others mention a 36-month timeframe. There are concerns that the unclear guidelines might deter repayments and favor those who can pay back quickly. Some suggest that those capable of early repayments should be allowed to do so, while others believe the President should provide clarification.
Legislators on the Public Service and Local Government Committee of Uganda’s Parliament, along with the Minister of Local Government, Victoria Rusoke, have failed to reach a consensus on the repayment period for the Parish Development Model (PDM) funds. The PDM aims to boost rural development in Uganda.
During the session, some legislators believed that beneficiaries should repay the funds within 24 months, while others referred to President Yoweri Kaguta Museveni’s statement that the repayment period should be at least 36 months.
The confusion arose because the PDM guidelines specify a 24-month grace period before repayment should begin. However, some constituents were advised to pay back the funds after two years, leading to differing interpretations.
The legislators expressed concerns about the lack of clarity in the information provided by the PDM and called for President Museveni to clarify the matter. They also argued that allowing those who are financially capable to repay earlier than the specified 24-month grace period could create confusion among beneficiaries.
Minister Victoria Rusoke explained that many people were eager to repay the funds but were unable to do so within the 24-month grace period, as stipulated by PDM guidelines. As a result, the PDM secretariat is preparing a document to allow those who can repay earlier to do so.
The coordinator of the PDM secretariat, Galabuzi Ssozi, emphasized the need for clarity in interpreting the President’s message. He suggested that it was essential for the President to address the confusion he created.
Additionally, Galabuzi mentioned the potential transformation of PDM into a parish or community bank in the future to facilitate rural development through improved access to credit.
The session began with a delay as several legislators arrived late, but it eventually addressed the need for clarification and consistency in the repayment period for PDM funds.