BoU warns public on fake forex bureaus
Right to left: Ms Alexis Kiiza, Mr Lamech Kiiza, La Cedri founder, Mr Timothy Sekilayi, Mr Arthur Serunjogi, La Cedri business operator and the BoU deputy director supervision at the celebrations to mark 20 years of the forex bureau in Kampala last Sunday. PHOT0 BY JOSEPH KATO
What you need to know:
- Investigation. Early this year, Gen Kale Kayihura, said more than 30 forex companies were under investigation for dealing in fake currency.
Kampala.
A Bank of Uganda (BoU) official has challenged the public to be cautious with illegal forex shops used for transacting counterfeits.
While speaking at La Cedri Bureau De Change’s 20th anniversary on Sunday, Mr Timothy Sekilayi, BoU deputy director supervision, said there are several unregistered forex shops that are involved in transactions of fake currencies.
“You have had many stories of people losing money through foreign exchanges. Such companies are not certified. Be cautious when making foreign exchanges. Ask for certification. Report illegal forex shops to the Police,” Mr Sekilayi said.
His argument concedes with Mr Andrew Kaweesi, Police spokesperson’s September caution on counterfeits being transacted through forex shops. This was after four people were arrested in Kenya with Shs48m counterfeits of Ugandan currency. Early this year, Inspector General of Police, Gen Kale Kayihura, said over 30 forex companies were under investigation for dealing in fake currency transactions.
Mr Sekilayi applauded Mr Lamech Kiiza, La Cedri founder and Mr Arthur Serunjogi, business operator and shareholder for the role they play in promotion of foreign exchange in Uganda.
“La Cedri is one of those forex shops that are good at implementing BoU policies. Your stability in forex business is well noted. In 2015 the bureau’s return on equity was reported at 28 per cent from 19 per cent.
Those doing business know that is a very high ratio. It is a big achievement,” Mr Sekilayi said.
He argued the directors to uphold good corporate governance principles saying without them there is no business that can last for 20 years.
Mr Kiiza attributed their success to good financial discipline and urged other entrepreneurs to have a high financial discipline to avoid issues of being liquidated.
“What we are celebrating today has been a journey coupled with enormous pitfalls,” Mr Kiiza said.
Mr Serunjogi said they had increased employees from four to 41 and, managed to establish four other branches; adding they will soon go into agency banking.
As of August 31, Uganda had 256 registered forex bureaus operating under BoU guidelines across the country.
