19 September 2007

Uganda: Police Probe Another Microfinance Firm

Kampala — THE number of savings and co-operative credit organisations being investigated by the Police has risen to four.

This followed complaints against Stade Rugando Finance located in Kanyanya, a Kampala suburb, the Kampala Extra police spokesman, Simeo Nsubuga, said yesterday.

Three people have recorded statements against the organisation, saying they were promised loans of sh2m and above after depositing sh500,000.

"Investigations into the activities of this company and all the others are ongoing," Nsubuga said.

He earlier announced that they were investigating Front Page Microfinance, Faster Microfinance and Savings and Credit Cooperation Support Uganda over allegations that they had cheated their clients.

Nsubuga said the number of complainants had risen from 20 to 50.

The Front Page managing director, Yiga Muwonge, was set to appear at Central Police Station over the matter.

In a related development, hundreds of Front Page clients yesterday flocked the offices on Wilson Road in Kampala to withdraw their money following an announcement by the Police.

The corridor was congested as people waited for their turn to meet the officials.

But many got angry after reportedly getting only between sh10,000 and 50,000.

Moses Buyondo, a businessman based in Kisekka Market, said he deposited sh450,000 in May.

"I have never received a coin from these people. Worse, I cannot withdrawal the money I deposited.

The Government should intervene."

Henry Kamugisha wanted to save sh500,000 to undergo an operation and started depositing money in March.

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