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Parliament wants pyramid schemes banned

Hon Mwine Mpaka, (NRM, Youth, Western) presents a motion to the House urging government to ban all Ponzi and Pyramid schemes.

Legislators have unanimously condemned fraudulent investment firms commonly known as Ponzi or Pyramid schemes, which promise high returns with little or no investment.

A motion moved by Hon Mwine Mpaka, (NRM, Youth, Western) urged government to ban all Ponzi and Pyramid schemes.

“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.

Mwine Mpaka, added that the schemes have robbed Ugandans of their money and that bank accounts of the individuals operating the fraudulent schemes should be frozen.

Hon. Lydia Chekwel (Indep., Kween) said that she too was duped into the schemes and that she even failed to take her children to school.

“I was recruited into this scheme; I got excited and recruited my husband as well.  We were defrauded to the extent that we failed to pay children’s school fees. I still have receipts to prove this,” she said.

The Minister of State for Ethics and Integrity, Hon. Simon Lokodo, said he condemns the spirit of dishonesty where Ugandans dupe the poor with no shame.

“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 said.

The House sitting, which was chaired by the Deputy Speaker, Jacob Oulanyah, noted that a big number of MPs had been victims of fraudulent Ponzi and Pyramid schemes.

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