Masaka City’s mobile money service providers are perturbed as a significant number of them have found themselves unable to operate, following the abrupt blocking of their agent lines.
This sudden move, executed under the directive of Centenary Bank’s Masaka branch, has left many operators grappling with losses and unanswered questions.
The decision to block these lines stems from a growing suspicion that these agents were entangled in a fraud scandal that has cost the bank millions of shillings.
At the heart of this controversy is Kisa kya Maria, an agent banking service provider strategically positioned opposite Equity Bank along one of Masaka’s busiest avenues.
The scandal, which has sent shockwaves through the local financial community, is believed to involve fraudulent activities linked to this particular agent, leading to the broad and sweeping action by Centenary Bank.
Now, as investigations unfold, the ripple effects are being felt across the city, with many mobile money service providers bearing the brunt of the fallout.
Preliminary information gathered suggests that some bank employees were secretly helping unauthorised transactions go through the Kisa kya Maria banking agent account, causing the bank to lose money.
These transactions allowed the agent to turn the money into cash by selling mobile money floats to various agents operating in the central business district of Masaka City.
However, some mobile money service providers, who spoke on condition of anonymity, believe the bank is trying to push them into losses.
They argue that at their level, they should be buying floats from MTN service providers and bank agents, not dealing with these issues.
“I wonder why this is so hard for the bank and MTN to understand, we pay our money to receive a float on our working lines but now can you imagine our lines were blocked after paying money to Kisa kya Maria, all we get this money as loans and we have to pay it back.” One of the MM agents noted.
Another mobile money agent wonders why the bank did not trust the police entirely with the investigations or deal with Kisa kya Maria who directly has contact with them.
“This is the second week ever since they notified us of inviting us to the police to record statements, which statements we don’t know are all about what? After the investigations, who will pay for the losses encountered without working? MTN blocked our lines under the influence of the bank, they unblock our lines or else they let us know and focus on Airtel money alone.”
This website has also discovered that the bank is focusing on mobile money service providers to recover its lost funds, possibly avoiding a confrontation with the owner of Kisa kya Maria agent banking, who is reportedly well-connected with influential individuals in the country.
However, Centenary Bank management has stated that they have already reported the issue to all the relevant authorities.
“We have reported the matter to the relevant authorities and have taken precautionary measures including temporarily blocking the lines of mobile money service providers suspected to be connected to the ongoing investigations.” Centenary bank statement reads in parts.
It also indicated that they are working closely with the authorities to establish the facts and provide clarity to all stakeholders while ensuring that any culprits found are held accountable.”
It however, is not clear with which police station in Masaka or the country Centenary Bank reported the matter, since upon contacting the Southern Region Police Spokesperson Twaha Kasirye to establish the rate at which investigations have reached seems surprise of whether any matter has been reported and related investigations taking place.
Our efforts to talk to Kisa kya Maria mobile agent are not yet fruitful since their center has been closed for days now and their official lines are not going through.
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English 