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Alliance Global closed down over increased fraudulent

Lukwago Joseph by Lukwago Joseph
May 10, 2019
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Security in Mbarara district has closed the operations of Alliance Global which is said to be a Ponzi scheme, for allegedly fleecing people of their money.

The closure followed a raid on Wednesday on the scheme’s offices located in Mbarara municipality, in a joint operation by Police and the military. The Resident District Commissioner (RDC) of Mbarara, Col James Mwesigye who was part of the team that conducted the raid ordered that the offices be shut down immediately.

 “There is this company called Global Alliance. What they have been doing is gather young people some of whom bring the money meant for school fees and hand it to them. You pay Shs 770,000 as a share, then they give you products to sell. But even these products they claim to have are nowhere”.

He said discussions have been ongoing between security and the managers of the scheme, asking them to stop cheating young people. But they have been very adamant not until today in our district security committee when we resolved to close them, said Mwesigye.

“Very many cases have been reported. Today, there are about 16 young men at Police who were found sleeping in the bush not because they are rebels but they had no money to rent a place to stay this town”.

“It’s our duty as government not to leave the people of Uganda in the hands of those people who want to leave them however they want. So, we have not come here to joke. Tomorrow, I find you here, we shall arrest everybody and then we go to court,” he told the staff at the premises.

He also directed the DPC to deploy heavily to prevent any possibility of the scheme continuing its dealings.

The RDC said if it means going to court, they will battle with Alliance Global Directors so as to protect Ugandans.

Security officials said they have received numerous complaints from individuals who have allegedly been defrauded by agents of Alliance Global.

Reports state that the Ponzi scheme has for years defrauded unsuspecting individuals under the pretext of getting them jobs and promising them exciting monetary gains once they subscribe.

It is estimated that over 5,000 youths in Mbarara district alone have subscribed to the scheme with hopes to get quick money.

Some of the youths who were picked by the RDC during the raid on the office defended Alliance Global, claiming that some of their peers have bought cars from the money attained from the scheme.

However, the Police CID, Bosco Mutabazi told SoftPower News that Police recently rescued 16 youths who were found in a closed room on the outskirts of Mbarara town. He said the youths were barely surviving as they could not afford a meal.

“You can’t imagine these boys were picked from Kisoro. They were eating a portion of posho from the floor, with no plate no saucepan, no mattress. We asked what they have benefited from Alliance Global but they only narrated that they don’t have a single coin to take them back home to Kisoro,” he said.

To join the scheme, one must pay Shs 70,000 to 80,000 with a promise to earn Shs 200,000 daily.

(Soft Power News)

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Lukwago Joseph

Lukwago Joseph

Lukwago Joseph grew up in a newspaper family, and rumor has it that instead of playing the guitar in his infancy, his parents put a reporter’s notebook and a pen next to him shortly after he turned born eight years. Before becoming editor of UGANDANZ, Lukwago was a parliament news editor for WBS TV. He joined UGANDANZ in July 2018, A few months after the company launched. Lukwago also spent five years as a freelance reporter, where he covered reporting for the highest bidder, intelligence, foreign policy, and Ugandan police. Lukwago graduated from Makerere University in 2008 with a B.A. in Journalism and worked on his college newspaper.

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