The State Minister for Microfinance Kyeyune Haruna Kasolo has ordered investigations into the operations of a money lending company, KARANDE Rescue Financial Services Limited.
The company is accused of allegedly defrauding hundreds of Mutukula residents.
The microfinance lending institution operates in Mutukula Town Council at Uganda-Tanzania border post in Kyotera district.
Kasolo says his office has received several complaints from people who claim to have been defrauded.
The minister while addressing money lenders on Wednesday in Kyotera district on the new modalities of licensing, instructed a team from the Uganda Microfinance Regulatory Authority-UMRA to investigate the operations of the company.
He also instructed the authority to halt the licensing process of the company until investigations are complete.
//Cue (Luganda); “kubanga nze njagala…
Cue out….ani anakomawo ewuwo.”//
UMRA is meeting all money lenders, operators of Savings and Credit Cooperative Organizations- SACCO's and other micro Finance lending institutions categorized under Tier four, to sensitize them on the new licensing framework.
Kasolo has also noted that there are also several other money lending companies whose operations need to be clearly studied before licensing, asking the authority to be cautious while issuing out certificates.
//Cue in; “waliwo companies ezibaddewo…
Cue out… kumala nsonga zaabwe.”//
However, Robert Rugaba, the Managing Director of KARANDE Rescue Financial Services Limited argues that minster could have been misguided by individuals who want him out of business.