By Mubiru Ivan
Members of Parliament have called for the ban of pyramid schemes in Uganda, which they say have made it a tendency of fleecing millions of shillings from unsuspecting Ugandans.
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
The motion was moved on Thursday by Western Youth legislator Mwine Mpaka.
“Unsuspecting investors recruit new people who invest in the scheme. Whereas money comes in, this money is used to benefit the owners of the schemes and those who entered earlier. They usually appear genuine and profitable investments,” he said.
Adding, “The schemes have robbed Ugandans of their money and that bank accounts of the individuals operating the fraudulent schemes should be frozen.
Meanwhile, Fr. Solomon Lokodo, the Minister of Ethics and Integrity condemned the act (of fleecing Ugandans) describing it as a spirit of dishonesty.
“These people take even the little you have while pretending to help. They exploit unknowing Ugandans who sometimes have become partners of this vice. It’s really a pity,” he noted.
There are many such grand scam companies introduced in Uganda and then dissolve, leaving heartbroken Ugandans poorer.
D9 club, Telex Free, Aim Global, GNLD, tiens just to mention but a few, have done more harm than good in defrauding locals.
Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
