Eight years on,3000 Ugandans are living with the consequences of investing money into a fraudulent scheme that promised them 54% interest
Caring for Orphans, Widows, and the Elderly (Cowe) had the appearance of a respectable non-profit organisation. They had kind offices (usually a good yardstick for corporate credibility in Uganda),were registered with the Uganda National NGO board and described themselves as a community membership organisation that would lift the vulnerable out of poverty.
They also claimed to be running a microfinance scheme that would pay good rates of interest to investors, despite not having a license from the central bank to pick deposits from the public. The interest rates – a hefty 54% a month – should probably hold sounded warning alarms. But people who invested 65000 Ugandan shillings (£13) when they first opened received Shs 100000 (£20) at the halt of the month. Ugandans smelt an opportunity to execute a quick buck, or when the first savers got the supernormal interest,a buzz of excitement was created. Related: Who saves the least money? Financial exclusion around the world - interactive Related: The microfinance delusion: who really wins? Related: Cutting lifelines: 'If we can't send money home everyone suffers' Continue reading...
Source: theguardian.com