KAMPALA. The Bank of Uganda has ordered the freezing of accounts of D9 Company that operates like a pyramid scheme. The company is managed by a one Mr Magara Protus Smart. A pyramid scheme is a form of investment in which each paying participant recruits two further participants with returns being given to early participants using money contributed by later ones.
The practice is illegal in a number of countries because it is seen as manipulative.
The executive director supervision Bank of Uganda Ms Justin Bagyenda, said in a circular issued to all Chief Executive of commercial banks, credit institution and microfinance deposit taking institutions, that they have got information about an organization known as D9 Club operating in Uganda with characteristics of a pyramid scheme coordinated by Mr Magara Protus Smart with the details: Name Mr Magara Protus Smart, Date of Birth May 05 1978, National ID Number CM78062107V0E, Passport number B0553829.”
Mr Bagyenda asked all commercial institutions privy to the letter to provide Bank of Uganda with account opening documents of the respective accounts together with the account statements from when they were opened to date.
The circular further reads: “This information should be submitted to the office of the director commercial banking not later than June 30, 2017.The account in question shall remain Frozen until otherwise advised by Bank of Uganda.”
The circular is signed by Ms Bagyenda and bears a stamp of the Housing Finance Bank dated 28 June 2017.