Fraud Exclusive: Another City Financial Institution Defraud Ugandans 700 Millions of Hard-Earned Cash

KAMPALA, Uganda: Another city Financial Institution is on the spot for defrauding several Ugandans of millions in Shillings after reportedly duping them into depositing money. RICA Microfinance and Business Solutions is a Money Lending Company which has been in existence since 2011.

It has branches in Kampala, Iganga, Jinja and Lira. However, this institution allegedly duped several Ugandans through persuading them to invest with the company. The managing director Cathy Mbabazi persuaded several friends to invest with the company after promising them to earn monthly deposits. Mbabazi co-owns the companies with her husband Richard Mbabazi.

It is not clear how many customers invested with RICA Limited but information obtained by our intelligence from some of them indicate that there are over 20 customers who invested their money with the mysterious company which operates under different names .

It operates under names like RICA Microfinance Ltd, Rica Limited, Rica microfinance and Business Consultancy solutions among other names. It was licensed as a Non Deposit Making Microfinance Institutions by Tier 4 and Microfinance Regulators.

Several of its investors are crying foul and some of them have pleaded with us to bring out their plight, claiming that efforts to recover their money seems in balance even when they reported their case to the microfinance regulators, a government authority.

The customers demand monies ranging from, 120millions, 150Million Shillings, 77million Shillings, 50million Shillings, and 3million Shillings among others. This company’s indebtedness is close to 700million Shillings most of which is money invested by Nkuba Kyeyos.

Customers who have asked not to be named for fear of losing their money with the institution say they were duped and persuaded by Cathy Mbabazi who claimed she is born again. They allege that even after investing their money, RICA’s Mbabazi is elusive and never picks up their calls.

The customers now demand that RICA sells off its assets and pay them. They have different receipts issued by RICA under different names. Documents obtained by The Investigator indicate that RICA Ltd is transacting business fraudulently. This scandal comes weeks after another Microfinance Institution Dunamiscoin Limited defrauded several Ugandans in Kampala, Masaka, Mbale, and Jinja among others.

Contacted for a comment, Mbabazi sounded ignorant of any claims from her customers. “Hello, I have seen this. Who are those clients and how much are they demanding? I don’t understand,” she responded upon approaching her through WhatsApp.

When contacted, officials at the Uganda Microfinance Regulatory Authority confirmed our sources’ plight. “It’s true there are some complaints against RICA but we are trying to engage management for a solution,” Eddie Bindhe, the PRO told the Investigator. Asked why they allowed a Non Deposit company to solicit money from their customers, Bindhe went silent before we lost him. Watch this space…