By KT Reporter
The Uganda Manufacturers Association has initiated a Fraud Database that is aimed at helping curb repeated fraud through storing and sharing information. Through a special purpose vehicle, the Fraud Database Uganda, the initiative will record cases of fraud that have been committed by employees, consultants, suppliers and contractors, and any other persons against the businesses.
The manufacturing sector is one of those that have suffered fraud in different forms, through theft by employees, like accountants, lawyers, and others, but also suppliers and service providers who criminally evade meeting their parts of the contract. UMA Board Chairperson, Aga Sekalala Jr, said the initiative will also be part of the efforts by the sector to minimize losses, enhance risk controls, and foster integrity across the business community, which has suffered losses.
In 2024, a total of 110 cases were filed with the Police Force by the business community. UMA says the issue is not necessarily in the number of cases, but the amounts involved that go into billions of shillings. The database is intended to be a hub for collaborative fraud prevention, enabling businesses and communities “to access real-time, verified insights that promote trust and transparency in the marketplace”.
UMA now encourages businesses to support the service with information on the incidents they have encountered, adding that these will be scrutinised to ensure that the reports are not merely allegations, before they are uploaded. Joselin Kateeba, the Chairperson of the Fraud Database Uganda Board, said the database has been well-thought-out, after benchmarking in and outside the country, on companies like South African Fraud Prevention Services and Cifas, a fraud prevention service firm in the United Kingdom.
The database will be membership-owned, and membership is open to organisations across all sectors, including manufacturing, oil and gas, banking, retail, and logistics. Once a member, an organisation will have access to verified records for due diligence and recruitment decisions.
They will also have access to tools to report and share fraud cases securely, cross-industry data sharing and peer collaboration, as well as capacity-building workshops and technical support, according to Kateeba.
The initiative was developed in conjunction with ALP Advocates in Kampala. Lastone Gulume, Head Practice at ALP Advocates, says all legal aspects were considered and that it does not contravene or compete with any existing frameworks, but complements them. He says that the issue of fraud is complex to deal with because in most cases, it is discovered long after it has been committed.
Previously, Ms Kateeba, who is also the Managing Director at mattress manufacturer, Crest Form, gave the example of when her company lost 2.5 billion shillings in two years, and that, unfortunately for the victims, the legal processes take too long, as the criminals continue rebranding and committing fraud. Lawyer Gulume says the initiative is necessary to deal with the gaps left by the existing systems, but also the growing and evolving challenges of fraud.
The database due for launch this Friday, is not only targeting manufacturers, but all business sectors, including services, trade and others-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
