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Microfinance Proprietor in Pader Arrested over Loan Scam

Kamwokya Times by Kamwokya Times
April 4, 2025
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Microfinance Proprietor in Pader Arrested over Loan Scam
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By KT Reporter

The proprietor of Benlinna Financial Institution, Lillian Akullu, has been arrested on allegations of defrauding community members in a suspected loan scam. The institution claims it gives loans for school fees, agriculture and salary loans, among others.

Akullu, who previously operated under the name Ben Financial Institution, is accused of collecting money from locals under the pretense of offering loans, but only to disappear without delivering the promised services.

Pader District Police Commander, Jackson Bogere, said investigations are underway to determine the full extent of the scam.

“This is not the first time she has been involved in such acts. She had earlier operated under a different name and conned locals and some with victims reported from Amuru, and other districts,” SP Bogere said.

The arrest followed complaints by three women from Acholpii in Pader Sub-county who claimed they deposited over 300,000 Shillings with the institution but received no loans to date. Akullu had also reported a counter-case of threatening violence to the police, which was dismissed as false and misleading.

A former employee who requested anonymity revealed that Akullu failed to pay her full salary, only offering 100,000 out of the agreed 150,000 Shillings. “She misleads clients, takes their money and diverts their priorities before handing it to other people. She’s not transparent,” the ex-employee said.

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In 2023, when the institution was still known as Ben Financial Institution, one of the employees was arrested when locals raised similar concerns about loan delays and unmet promises. The institution blamed the delays on issues such as fake documents, insufficient security, and ownership disputes.

Akullu earlier claimed that over 20.8 million Shillings had been disbursed to farmers in 2023, but community members continue to question the credibility of those claims. Police say Akullu will be charged and presented in court once investigations are completed-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com

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