Summary:
Investigations have uncovered a deeply entrenched system where aspiring beneficiaries are forced to pay a mandatory fee of UGX 30,000 ($8) per application a practice experts call extortion and a blatant violation of the program’s purpose.
KAKUMIRO: Residents of Nalweyo Sub county in Kakumiro District are crying foul after reports emerged that local officials are demanding bribes to authorize loan applications under the Parish Development Model (PDM) program.
Investigations have uncovered a deeply entrenched system where aspiring beneficiaries are forced to pay a mandatory fee of UGX 30,000 ($8) per application a practice experts call extortion and a blatant violation of the program’s purpose.
According to multiple sources, applicants who fail to pay the illegal fees have their applications withheld, effectively blocking their access to government funds meant to uplift small enterprises. Desperate to secure the funds, some applicants have resorted to selling personal belongings, such as bicycles, to afford the bribe.
“I had already filled out my forms, and everything was in order,” said a 60-year-old applicant, who requested anonymity for fear of retaliation. “But when I submitted it, I was told I had to pay UGX 30,000 first. I don’t have that kind of money lying around, so now I’m considering selling my bicycle. If I don’t, my application will be rejected.”
Another PDM member, also speaking anonymously, confirmed that the bribe was a non-negotiable requirement.
“They told me straight up—no money, no approval,” he said. “I’m expecting money on Sunday, so until then, I can’t proceed.”
Documents reviewed by this publication show that dozens of applications were withheld simply because their owners failed to pay the illegal fee. Some members, who had already paid the official UGX 5,000 application fee, were shocked to learn they had to pay an additional UGX 30,000.
A board member of a PDM enterprise group admitted the practice was unlawful.
“This is illegal,” he stated. “Imagine they pay UGX 5,000 for the application form and still have to pay UGX 30,000 on top. For what? Remember, no government program is meant to be self-funded in this manner.”
Despite these revelations, many applicants remain hesitant to come forward publicly, fearing retaliation or the withdrawal of their applications.
The PDM initiative, launched by the Ugandan government, was designed to provide financial support to grassroots enterprises as part of a national poverty alleviation strategy. However, in Nalweyo Subcounty, the program appears to have been hijacked by unscrupulous officials who have turned it into a pay-to-play scheme.
Multiple sources confirmed that the illegal payments are being enforced by a section of local officials who manipulate the approval process.
“There are specific individuals ensuring that only those who pay get access,” a reliable source disclosed. “This program was meant to uplift the poor, but ironically, it is the poor who are suffering the most due to corruption.”
“This is precisely why Uganda continues to struggle with corruption,” said a local anti-corruption activist. “We have well-meaning programs, but they get hijacked by people who see them as personal business ventures. The government needs to intervene immediately and bring those responsible to justice.”
This publication has obtained exclusive video footage showing a PDM official discreetly accepting UGX 30,000 from an applicant before proceeding to process their file. In the same footage, other applicants can be seen placing cash on top of their application forms—an unspoken but well-known requirement for fast-tracking approvals.
“This is how it works here,” one recorded applicant tells a colleague. “If you don’t pay, your file will sit there for weeks—maybe even months.”
The footage further confirms allegations that bribe payments are an organized and widespread practice among local leaders overseeing the disbursement of PDM funds.
Attempts to get official responses from the Nalweyo Subcounty leadership were futile, as calls went unanswered and most officials declined to comment on the allegations.
With the scandal now exposed and video evidence confirming the corruption, affected members are hoping for swift action from authorities to put an end to the exploitation.
