Africa Polysack Dismisses Involvement in Illegal Payroll Lending Scheme

Africa Polysack Industries Limited has strongly dismissed allegations linking the company to an alleged unlawful payroll-based money lending scheme involving its employees.

According to the management, clarification on the matter was issued a month ago. However, individuals allegedly intent on tarnishing the company’s reputation have continued to circulate false information. Management warns that failure to retract the claims and issue a public apology may result in legal action.

In a formal response dated April 20, 2026, addressed to several government and regulatory bodies, including the Executive Director of Bank of Uganda, the Inspector General of Police, the Ministry of Gender, Labour and Social Development, and the Minister of State for Microfinance, the company said internal investigations found no evidence supporting the claims contained in an anonymous whistleblower complaint.

The complaint had alleged that the company was involved in a syndicated and unlawful arrangement through which employees’ salaries were allegedly intercepted or used to recover private loans through the payroll system.

However, Africa Polysack said a comprehensive internal review of its payroll processes, salary payment procedures, and management operations established that no unlawful deductions or irregular payroll activities existed within the company.

“Management caused an internal review and investigation to be undertaken into the matters raised, including the Company’s payroll processes, salary payment procedures, and any alleged involvement of Management or payroll personnel in employee lending arrangements,” the statement reads.

According to the company, the review did not uncover any evidence of an internal money lending scheme, salary interception arrangement, or collusion with third parties aimed at recovering personal loans from workers through payroll deductions.

The company further maintained that it remains fully compliant with Uganda’s Employment Act and only makes statutory and legally authorised deductions from employee salaries.

“Beyond lawful deductions, the Company does not make, authorise, facilitate, or participate in any deduction, diversion, interception, or recovery of employee salaries for private lending purposes,” management stated.

Africa Polysack also clarified that once employee salaries are processed and remitted through designated payment channels, any subsequent loan recoveries or debits are matters strictly between employees and financial institutions or lenders they may have independently engaged.

The company distanced itself from any private borrowing arrangements entered into by employees, insisting such agreements cannot be attributed to the employer in the absence of credible evidence linking the company to the transactions.

Management said the company remains committed to lawful employment practices, transparent payroll administration, and full compliance with Uganda’s labour laws.

The firm also urged employees to transact only with licensed and regulated financial institutions, warning against informal or predatory lending arrangements that could expose workers to financial hardship.