Masindi district local government is concerned about a new credit society which is demanding money from people and promising them cheap loans in return.
The Masindi Rural Community Cooperative and Savings Society Ltd-(Marucco) was established recently by an unemployed youth in Masindi town, Erasmus Katusabe.
Katusabe has been demanding for 25,000 shillings as membership fee. In addition he asks potential members to pay between 30,000 and 70,000 shillings for proposals to acquire Loans.
The deputy chief administrative officer, Jack Byaruhanga, is disturbed by this. In a letter to the district chairman, Byaruhanga said the new credit society should be barred from using the iProsperity for all slogans, which is linked to the government micro credit scheme commonly known as Bona Bagagawale.
Byaruhanga does not rule out the possibility that the credit scheme could be using this slogan to con the unsuspecting people of their money. He says the credit scheme director; Erasmus Katusabe should be investigated for his actions.
Katusabe however maintains that the Masindi Rural Community Cooperative and Savings Society Ltd, has done nothing wrong because it is simply implementing the governments micro credit project in Masindi.
Katusabe is elusive about the number of people who have applied for the loans. But sources in his organization say he has accumulated close to 14,000 members.
Some of the members have become suspicious of his actions. They claim that they have already spent a lot of money in opening bank accounts and yet the loans promised to them are not forthcoming.