Agago RDC Orders Arrest of Market Leaders over Shs200m Swindle

Agago RDC Orders Arrest of Market Leaders over Shs200m Swindle

The arrest of three Kalongo Market Vendors Association leaders has sparked a financial probe into more than Shs200 million in members’ savings that the association reportedly cannot account for.

Agago District Resident District Commissioner (RDC) James Nok Robinson Kidega has ordered the arrest of three leaders of the Kalongo Market Vendors Association over allegations that more than Shs200 million belonging to members cannot be accounted for.

The arrests followed complaints lodged by association members at the RDC’s office, where vendors reportedly raised concerns over the whereabouts of their savings and demanded an explanation from their leaders.

According to the aggrieved members, the association is expected to have more than Shs200 million in its accounts, but they claim that only about Shs1 million remains, raising questions about how the funds were withdrawn or spent.

The leaders have reportedly denied members access to the association’s financial records, while attempts by members to convene an Annual General Meeting (AGM) to demand accountability and elect new leaders have allegedly been frustrated.

Kidega said the case is part of what he described as a growing form of “community corruption”, in which leaders entrusted with managing savings and development funds allegedly exploit ordinary members who have limited access to financial records.

He said he initially attempted to bring the parties together to resolve the dispute amicably, but the efforts failed, prompting security authorities to intervene.

Kidega said the three arrested leaders are only the beginning, with more than 10 other officials expected to face investigation as police and other authorities establish the full extent of the alleged financial irregularities.

A joint investigation involving police is already underway, while the association’s bank accounts are expected to undergo a comprehensive audit.

The RDC said he will work with the Pader District audit department to scrutinise the association’s financial records, including deposits, withdrawals, loans, expenditures and other transactions.

Those found responsible, he said, will be prosecuted and compelled to refund any money established to have been stolen.

“Those who have swindled the money will have to account for it. If found culpable, they will face the law and the money will have to be recovered,” Kidega said.

Members have also started recording statements with police as investigators seek to establish who authorised transactions and where the missing funds went.

The Kalongo Market Vendors Association was established in 2020 and has grown to more than 1,000 members drawn from different categories of vendors operating in and around the market.

Members say they have repeatedly demanded an AGM where the leadership would present financial accountability, explain the status of their savings and pave the way for elections.

However, they allege that the current executive has repeatedly frustrated attempts to convene the meeting.

The association’s general secretary, Lalam Rose, said she has personally tried on several occasions to push for an accountability meeting, but her efforts have been rebuffed.

Rose alleges that her insistence on accountability has resulted in her being sidelined from discussions concerning the association.

The allegations remain subject to investigation, and the accused leaders have not been convicted of any offence.

The Kalongo case comes amid a history of financial disputes involving community associations, cooperatives and savings groups in Northern Uganda.

In 2025, members of the East Acholi Cooperative Union petitioned Parliament over allegations of mismanagement and demanded an audit of more than Shs3.1 billion that had been released to the union. The leadership denied the allegations, while Parliament scrutinised the management and financial affairs of the cooperative.

The region has also previously witnessed disputes over funds belonging to war-affected communities. In 2012, police investigated allegations surrounding Shs2.5 billion released to the Acholi War Debt Claimants Association following claims that some beneficiaries had been replaced by alleged “ghost” claimants.

Another case occurred in Gulu in 2008, when a former NUSAF technical officer was arrested over the alleged embezzlement of Shs12.8 million intended for community projects involving beekeeping and bricklaying groups.

In Agago itself, financial accountability concerns have previously surfaced. In 2019, officials and board members of Agaru SACCO were investigated following complaints over financial mismanagement, while some members alleged irregularities involving loans and recovery of funds.

More recently, authorities in Northern Uganda have continued to crack down on alleged abuse of community and government funds. In 2026, NRM Secretary General Richard Todwong warned party leaders in Acholi that anyone who diverted or withheld funds intended for village structures would face arrest and prosecution.

Kidega said the action in Kalongo is also intended to translate President Yoweri Museveni’s renewed anti-corruption message into action at community level.

He said leaders should not interpret the new term as business as usual while citizens’ money is being lost.

Kidega argued that mismanagement of savings belonging to ordinary vendors directly undermines efforts to fight household poverty because such groups are often the only avenue through which low-income families mobilise capital, access loans and invest in businesses.

The RDC has assured members that authorities will pursue the missing funds and ensure that any money recovered is returned to its rightful owners.

He has also urged members who borrowed money from the association to repay their loans, saying recovery of outstanding loans will be important in determining the association’s true financial position.

The investigation is expected to establish the actual amount missing, identify individuals responsible for any financial irregularities and determine whether the alleged loss resulted from unauthorised withdrawals, mismanagement, unpaid loans or other transactions.