Microfinance regulatory authority caution business community on fraud

The Executive director Uganda microfinance Regulatory Authority Edith Namuga has cautioned the business community and the general public from seeking financial assistance from un authourised financial institutions to avoid being frauded of their monies and taking their properties

Namugga said they recieve alot of complaints from people who are losing large sums money because of deing with such insitutions especially the mashrooming online finance institutions which most of them are not verified by their regulatory body.

She said that they recieve over 8000 cases and as people complain of losing their money as some lenders disappear with them or charge them excessive interests which later results into confiscating their properties they morgage as caulatal security.

Namuga express concern that they recently warned the public about un verified online finance insitutions but people are still adamamt over the matter.

She made the warning while presiding over the opening of Vision Fund microfinance bank,Iganga branch in Iganga municipality which is under world vision organization.

She asked people seeking any kind of financial assistance to first verify the auhorization status of the insitution with them before carey out transactions to avoid falling in traps and making losses.

The country executive director of the bank ms Mercy sunday Ainomugisha said that they opened up the branch in the area to transfrom the community economically through offering affordable loans to business community,farmers and parents to educate their children

Ainomugisha said that most of the people in the area low earners with no caulatel security which has been challenging them to access funds for development.

While the executive director world Vision Jeremiah Nyagah expressed commitiment of funding all the branches and people in the refugge areas to access the funds for income generating activities.

He noted that Busoga sub region is one of the vulnerable regions in Uganda which needs such such kind of innovations to transform the community economically.

The launch was attended by various partners in finance sector and local authorities which welcomed the innitiative citing its good and affordable services