Over 550 arrested over theft of PDM funds

Updated by Faith Barbara N Ruhinda at 1116 EAT on Wednesday 14 October 2026

Police have arrested 552 people across the country over the alleged theft, embezzlement and diversion of Parish Development Model (PDM) funds in a two-month nationwide crackdown, with authorities warning that the operation will be extended to more areas.

Of those arrested, 429 have been arraigned in court, police spokesperson Kituuma Rusoke said, adding that investigations were ongoing to identify other suspects implicated in the misuse of funds intended to lift households out of subsistence production and into the money economy.

Addressing journalists at police headquarters in Naguru, Kampala, Rusoke said the operation followed presidential directives to investigate the alleged abuse of PDM funds.

“We want all persons involved in the theft and diversion of PDM funds, including those in areas not yet covered, to know that the operation is coming. Remember, we have just covered a very small portion of the country. Without a doubt, it is a question of when, not whether,” Rusoke said.

Police said the crackdown has so far covered 12 police regional jurisdictions, including Karamoja, Teso, Bugisu, Sebei, Bukedi and Busoga, as well as parts of Buganda, particularly Luwero and Wakiso districts.

The suspects face charges ranging from theft, embezzlement and abuse of office to uttering forged documents, obtaining money by false pretence, conspiracy to defraud, extortion and cheating.

SACCO leaders account for the largest category of suspects, with 251 arrests, followed by 81 parish chiefs, 25 Parish Development Committee leaders, 23 representatives of Local Council leaders, 23 teachers, six Local Council leaders and five district commercial officers.

Rusoke said investigations had established that some officials were extorting beneficiaries by demanding bribes before processing their applications or releasing funds.

He urged individuals who had forged documents or diverted PDM funds to refund the money, warning that authorities would pursue suspected offenders through the legal process.

Rusoke said the operation was targeting PDM managers and handlers suspected of misappropriating the funds rather than the intended beneficiaries.

He added that intelligence teams had received reports of suspects threatening beneficiaries to prevent them from reporting cases of fraud and extortion.

Investigations and efforts to recover the funds would continue as authorities pursued those suspected of abusing the programme, he said.

President Yoweri Museveni launched the Parish Development Model (PDM) in February 2022 to transition 33 per cent of Ugandan households from subsistence production into the money economy. Under the programme, the parish serves as the lowest administrative unit for planning, budgeting and service delivery.

Each parish receives Shs 100 million annually as a revolving fund, with eligible households expected to access loans of up to Shs 1 million to invest in income-generating activities.

However, the programme has faced persistent accountability concerns, including allegations of embezzlement, diversion of funds and extortion by some SACCO leaders and parish officials.

More than Shs 3.38 trillion has reportedly been invested in the programme since the 2021/2022 financial year, raising questions about oversight and whether the funds are reaching their intended beneficiaries.

-Observer

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