Ugandans risk loosing millions in shady South African firm

Comments 7008 Views Kampala, Uganda
Young Stars International,a privately owned South African firm, is being investigated both in South Africa and Uganda for fraud. The firm, locally registered as Young Stars Trading has been in operation since May this year. Young Stars Trading operates a scheme in which depositors make investments in units or amounts of 80, 130, and 240 US dollars or Ugandans shillings 54,000 and 35,400 shillings. Young Star Trading then sources goods from China or Hong Kong using the money collected from its clients for sale in another country, from which the depositors are paid 30 percent interest on their investment after seven weeks. But five months down the road, most people who deposited their money in the company are crying foul play after realising that they could have been fleeced of their money. Two of the aggrieved clients were forced to drag the company to police. The companty then agreed to refund their money. Steven Tanuyi, the Kampala divisional police commander says that the matter has been brought to the attention of police, and investigations are underway. //Cue in: iWe are handling it from all fronts#Cue out: #people will be coming.i// Alex Mukose, the coordinator of Young Stars in Uganda admits that the company ran into problems and can't transfer money or pay back the deposits collected from clients. Boththe South African and Ugandan police have launched investigations and ordered Standard Chartered Bank to freeze their accounts. Mukose however declines to reveal specific commodities they invest in claiming everything is controlled in South Africa. Surprisingly, Young Star Trading Company has no director or shareholders in Uganda and the only person supposed to sign any transfer on behalf of the company is its chief executive officer, Daisy Mogale, a South African national. Mogale has not returned to the country since the company started operations. Mukose says Young Star Trading Company has about 350 clients, though he can not tell how much money they have so far collected. Mukose says only Mogale can give the financial standing of the company. Mogale can not come to Uganda because she is being investigated in South Africa for defrauding mainly poor people of over 104 million rand.

 

Tagged with: fraud

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