The High Court in Kampala has temporarily stopped the Uganda Music Promoters Savings and Credit Cooperative Society Limited (SACCO) from operating, following a dispute over alleged fraud, illegal takeover, and misuse of billions of Shillings in government funds.
In an interim order issued on Friday, Justice Patricia Kahigi Asiimwe directed the SACCO’s leaders and their agents to halt all activities. They are not allowed to hold meetings, make decisions, conduct elections, add or remove members, or access and use the SACCO’s money.
This order was given before hearing the other side and will last for three days, until April 27, 2026, when both parties will appear in court for hearing of a case filed by Tonny Ssempijja and David Mpora, who say they are founding members of the SACCO.
They claim that a group of individuals, including Paul Katongole, Zaidi Kafeero, Sandra Kasule, Godfrey Mayanja, Abbey Musinguzi (also known as Abtex), and Yasin Kaweesi, took over the SACCO illegally, pushed out the original founders and took control of the SACCO for their own benefit.
Court records show that the SACCO received a presidential grant of about 5 billion Shillings in 2025, which was part of a government program to support SACCOs and improve access to affordable credit. Out of this amount, 1.5 billion Shillings was released in January 2026, but the applicants claim that the money was misused, and they fear the remaining 3.5 billion Shillings could also be taken if the court does not intervene.
In their statements, the applicants accuse the respondents of planning and carrying out a scheme to take control of the SACCO. They say this included bringing in new members to influence voting, altering membership records, and backdating documents to appear legitimate. They also allege that the group moved the SACCO’s offices from Makindye to Bunamwaya without approval and falsely reported that important registration documents had been lost.
The applicants further claim that the respondents changed the SACCO’s leadership, removed founding members from key roles, and made themselves signatories to the SACCO’s account in Equity Bank Uganda. They argue that these actions broke the SACCO’s rules and the law, and were aimed at gaining access to the government funds.
The dispute had earlier been referred to arbitration under the laws governing cooperative societies. The applicants are seeking to have the respondents removed and the original leadership restored.
However, they told the court that the respondents were planning to hold a general meeting to conduct elections and change the SACCO’s rules. They warned that this could interfere with the arbitration process and make it ineffective.
They also claim that founding members who tried to challenge these actions faced intimidation and were blocked from attending meetings. Complaints made to the police and other authorities, they say, have not led to any action.
Because of these concerns, the court stepped in to stop all activities of the SACCO for now in order to maintain the current situation until both sides are heard and a decision is made.