Vision Finance Fund, an illegitimate microfinance bank in Uganda’s Central Region, recently was shut down for accepting money from its depositors under false pretenses. After receiving complaints questioning the legitimacy of the bank, police stormed the premises and found that the owner of the bank, Brian Mwebaze, was putting the money into a personal mobile banking account.
Mr. Mwebaze reportedly promised people that if they put money in savings accounts, they would be able to take out loans that were double the deposited amount with no interest during the following month. When police raided the bank, they found that the supposed microfinance bank was not linked to any legitimate commercial bank as is common practice in Uganda. Since the bank opened on August 1 of this year, it had established 94 customer accounts, creating a total loss of UGX 20 million or (USD 7,600).
Police Commander Chris Katumba is now cautioning community members to “always bank their money in genuine financial institutions in order to avoid being conned of their money.” Police are now searching for Mr. Mwebaze, who remains at large.
By Emily Teleposky, Research Associate
Sources and Additional Resources:
[1] Police Close Illegal Microfinance; over sh2m in savings lost http://www.newvision.co.ug/news/659264-police-close-illegal-micro-finance-over-sh20m-in-savings-lo-.html
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