Ghost Projects and Fund Diversion Mar PDM Implementation

The Auditor General, Edward Akol, has revealed that only UGX9.34 billion has so far been recovered from 18,105 beneficiaries in 709 Savings and Credit Cooperative Organisations (SACCOs) across 30 local governments from the 2022 cohort that began voluntary repayment of Parish Development Model (PDM) funds.

This is part of the cumulative UGX3.258 trillion released by the government to 10,589 PDM SACCOs nationwide.

Akol disclosed on 29 January 2026 while presenting the December 2025 Annual Audit Report to the Speaker of Parliament, Anita Among. In the report, he highlighted several challenges affecting the implementation of the PDM, including funding of non-existent (ghost) projects, delays in disbursements to households, financing of ineligible activities, diversion of funds, and duplicate beneficiaries.

“I noted that of the beneficiaries who received the Parish Revolving Fund by December 2022, a total of 18,105 beneficiaries in 709 SACCOs across 30 local governments had commenced voluntary recovery and a sum of UGX9.34 billion had been recovered. However, there was no evidence of preparedness for recovery in all local governments,” Akol said.

He further noted that of the UGX3,258.937 billion cumulatively released to PDM SACCOs, only UGX2,750.290 billion (84 per cent) had been disbursed to households by the end of the 2024/25 financial year, leaving UGX508.646 billion (16 per cent) still undisbursed.

Responding to the findings, Speaker Anita Among urged the Auditor General to tighten oversight to ensure the funds reach the intended beneficiaries.

“As we appropriate these monies, we want them to reach the final user and the final beneficiary. But the problem we have is diversion of funds. The money does not always go to the intended beneficiary,” Among said.

She called for firm action against misuse of the funds. “Auditor General, we want you to be firm. This money should go to the right people. We cannot appropriate money only for it to benefit a few while others get nothing. Make sure it reaches the right beneficiaries,” she added.

The Speaker also argued that proper implementation of the PDM had yielded visible benefits for some citizens, contributing to political support in the recent general elections.

“Many of the votes we received came from people who rightfully benefited from PDM funds,” she said. “But the audit shows delays in disbursement, some people being paid twice while others receive nothing, and poor alignment with parish priorities. These are issues that can only be uncovered through rigorous auditing.”

The Auditor General’s report underscores growing concern over accountability and efficiency in the rollout of the PDM, even as the government continues to inject significant resources into the programme.