Two popular microfinance companies, Dutch International and Team Microfinance, are being investigated by authorities in Mbale district for defrauding members of the public of more than four billion shillings. Dutch International and Team Microfinance have allegedly been operating a sham savings scheme, convincing more than 10,000 clients of investing in them. People from as far as Sironko, Manafwa, Bududa and Kapchorwa have saved money with the companies, in the hope of earning a 30 percent monthly interest off their deposits. Dutch International accepted deposits only in U.S. dollars and did not accept any amount less than 100 dollars. News of investigations into the fraud spread swiftly throughout eastern Uganda. Today hundreds of people stormed the Dutch International and Team Microfinance offices in Mbale to attempt to withdraw their savings. However both companies closed their offices and did not explain their actions. Andrew Jimungu, who was among hundreds of people who besieged the Team offices, said the company owes him and other clients and explanation. He said all savings made to the company should be repaid. //Cue in: iAs of now #i Cue out: i# and profit.i// Meanwhile Team Microfinance has changed its name to Elgon Agencies Limited. It is reportedly operating a similar savings scheme in Mbale Town. Abdu Magombe, the Membership Officer of Elgon Agencies, says the decision to change the name was made because the original company name had been tainted by the fraud allegations. //Cue in: iWe agreed with #i Cue out: i#change the name to Elgoni// The fraud case is being investigated by the office of the Mbale Resident District Commissioner.
Updated: 18 Aug, 12:0012:00
Tagged with: dutch international