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D9 club defies BoU orders, vows to continue operations in Uganda
In the circular issued to heads of commercial banks, credit institutions and Microfinance Deposite Taking Institutions on June 28, the executive director supervision Bank of Uganda (BoU), Ms Justin Bagyenda said the account in question shall remain frozen until otherwise advised by Bank of Uganda
What you need to know:
- In the circular issued to heads of commercial banks, credit institutions and Microfinance Deposite Taking Institutions on June 28, the executive director supervision Bank of Uganda (BoU) Ms Justin Bagyenda, said: “Pursuant to Section 118 of the Financial Institution Act 2004, your institution is accordingly directed to immediately freeze all accounts in the names of the said Mr Magara Protus Smart and also accounts belonging to an organisation known as D9 company and provide Bank of Uganda with accounts opening documents of the respective accounts together with the account statements from when they were opened to date.”
- Ms Jamira Apio of Byabzaire Musanolse and Company Advocates said the directive by BoU on the freezing of the accounts of D9 club does not mean stopping it from functioning because it is still under investigation.
KAMPALA. Despite it account being frozen, D9 club has vowed that it will not stop operating in Uganda because money being paid to its members in the country on weekly basis is not in the closed accounts in the various commercial banks.
Addressing a news conference on Thursday at Imperial Royal Hotel in Kampala, the chairman of the committee that manages D9 Africa, Mr John Sebutinde said D9 will continue operating in the country.
“D9 will continue operating in Uganda, despite the account D9 club in Uganda being frozen. This is because the money D9 pays its members is in the closed accounts in Uganda and that is why the members D9 continues to get paid every week,” he said.
Mr Sebutinde said the closed account does not mean that D9 has ceased operating in Uganda, adding that the closure of the accounts is still under investigation.
In the circular issued to heads of commercial banks, credit institutions and Microfinance Deposite Taking Institutions on June 28, the executive director supervision Bank of Uganda (BoU) Ms Justin Bagyenda, said: “Pursuant to Section 118 of the Financial Institution Act 2004, your institution is accordingly directed to immediately freeze all accounts in the names of the said Mr Magara Protus Smart and also accounts belonging to an organisation known as D9 company and provide Bank of Uganda with accounts opening documents of the respective accounts together with the account statements from when they were opened to date.”
She added: “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.”
Pastor Mark Kigozi of Real Life Family announced that on July 9, D9 will be celebrating one year of operation in Uganda and 3,000 people are expected to attend it from Uganda, Kenya, Tanzania, Rwanda and DR Congo. The ceremony is expected to be graced by its Ugandan chief executive officer, Protus Smart Magara.
Ms Jamira Apio of Byabzaire Musanolse and Company Advocates said the directive by BoU on the freezing of the accounts of D9 club does not mean stopping it from functioning because it is still under investigation.
“D9 is multi-level company and it has something to offer in trading service, which is different from a pyramid scheme. The freezing of account is just a gesture by BoU. Let them do their investigation and we hope the investigation will be concluded soon,” she said.
In her email response, the executive director supervision Bank of Uganda, Ms Bagyenda said: “ It is still early in the process of investigation and we cannot divulge what we have as of now.”
