Reports received from some police personnel indicate their discontent on the way the police consumer welfare scheme is being managed. It is alleged that every police person contributes an amount of ?20,000 every month towards the scheme. If contributors borrow from the fund, they pay back with interest of 10%.

When any of them is leaving the service, the monies they have contributed is calculated without interest and given to them. When the police public relations directorate was contacted, it refuted the allegations and explained that the welfare scheme, which was set up in April 1991, is compulsory for all service personnel, except recruits in training.

The initial contribution was ?1,000 per month per person and has been periodically adjusted in tune with economic realities till it reached ?20,000 from in 2001 and has remained so to date. The amount is deducted at source every month and paid into police welfare scheme account.

“The main purpose of the fund is to solve the short term socio-economic problems of personnel in the service. Membership of the scheme automatically qualifies personnel for loans and consumer items. The current loan level is ?800,000 per member. It is payable in 10 months with an interest rate of 10%,” Eklu said.

He refuted the allegation that staff received the exact amount they contribute at the end of their service. Rather, he said, contributors, on leaving the service, are paid the total number of months contributed to the scheme plus 5% interest, adding that the interest rate is currently under review and is likely to be adjusted upward.

On who manages the scheme, he said a management committee headed by the commissioner of police in charge of welfare at the police headquarters is managing it.

Other members include commissioner of police CID, deputy paymaster as administrator, a senior police officer as operations officer, an inspector and a representative of the other ranks supported by a secretariat at the headquarters.

The same set-up is duplicated at the regions and divisions. The scheme is decentralized with regards to deductions, loan disbursement and distribution of consumer items as far as to the divisional and district levels.

Signatories to the account at the headquarters are the commissioner of police in charge of welfare, the paymaster-general and the administrator while the regional commander, paymasters and the divisional commanders and their respective paymasters are authorized to sign cheques in the regions and divisions.