Officials in Mbarara Municipality on the weekend arrested three youths suspected to have misused the government Youth Livelihood Funds.
Under the Ministry of Gender Labor and Social Development program, youths are afforded softloans to set up and or expand group businesses and return the money in a given period.
The arrested were two members of Tankhill Youth Development Association.
These allegedly failed to refund Shs 7,120,000.
Another chairperson of Kisenyi Youth Salon Project only identified as Ruth was also picked for defaulting 12million.
The operation to arrest the youths followed outrage from the Municipal Councilors who attacked the Principal Community Development officer Mr. Peter Turyamuhaki over the unpaid youth livelihood funds.
Turyamuhaki was also accused of failing to train the youths on how to put the funds to good use.
Mbarara deputy mayor, Francis Bemanya expressed fear that the municipality was likely to lose up to Shs 116.8 million which was given out in the last financial year.
The frustration increased after councilors visited some of the youth projects, only to find no progress.