Egesa Ronald Leonard, an activist involved in exposing the illegal activities of loan sharks financed by Chinese owners, highlighted three key foolish actions undertaken by the operators of illegal online loan apps in Uganda. The operators of illegal online loan apps have displayed a remarkable level of foolishness in their business practices. Three glaring aspects highlight their incompetence and lack of foresight:
Firstly, these operators issue threats that they are incapable of fulfilling. Despite making intimidating statements, they lack the means or ability to follow through on these threats. This not only undermines their credibility but also exposes their lack of understanding of how to effectively manage their business operations.
Secondly, these operators claim to have field officers, yet they are too timid to disclose their own office locations. This contradiction raises doubts about the legitimacy of their operations and further erodes trust among potential borrowers. By failing to provide transparent information about their physical presence, they demonstrate a lack of professionalism and integrity.
Lastly, despite their fraudulent activities, these operators make no effort to appear legitimate. Even scammers recognize the importance of creating an illusion of legitimacy to deceive their victims. However, the operators of illegal loan apps in Uganda seem content to project an image of dishonesty and deception, further alienating themselves from potential clients.
Leonard emphasized that legally, the operators of these illegal loan apps are not permitted to recover money through courts. He urged the public to disregard any threats of legal action regarding repayment of loans. Notably, rogue companies have compensated victims who bravely reported their experiences, with the approval of Uganda’s Microfinance Authority.
On June 1st, 2024, Leonard formally requested information from the Executive Director of the Uganda Microfinance Regulatory Authority (UMRA). He is awaiting a response from Madam Edith Tusuubira, the head of the regulatory body. Additionally, Leonard plans to inquire with the State House Investors Protection Unit, led by Edith Nakalema, to determine if the Chinese investors behind these illegal loan apps are among those being protected. He also intends to ascertain whether President Museveni is aware of the harm caused by these unscrupulous individuals.
Leonard has copied his communications to various stakeholders, including the Ambassador of the People’s Republic of China to Uganda, the Chinese Embassy in Uganda, the Parliament of Uganda, and the Ministry of Finance, Uganda.
