Africa Polysack Dismisses Involvement in Alleged 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, describing the claims as false, malicious, and unsupported by evidence.

In a detailed response issued by management, the company said it had already clarified the matter over a month ago, but some individuals had continued circulating what it termed as misleading information aimed at damaging the company’s reputation and credibility.

Management warned that unless the allegations are retracted and accompanied by a public apology, the company may be compelled to pursue legal action against those responsible for spreading the claims.

The allegations stem from an anonymous whistleblower complaint that accused the company of participating in a syndicated arrangement through which employees’ salaries were allegedly intercepted or used to recover private loans through the payroll system.

However, in a formal communication dated April 20, 2026, addressed to several government and regulatory institutions, including the Bank of Uganda, the Uganda Police Force, the Ministry of Gender, Labour and Social Development, and the Minister of State for Microfinance, the company firmly denied any involvement in such activities.

According to management, an extensive internal review and investigation were conducted into the allegations, focusing on payroll management procedures, salary processing systems, and any possible involvement of company officials in employee lending arrangements.

“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,” part of the statement reads.

The company said the investigations found no evidence of unlawful payroll deductions, salary interception arrangements, or collusion with third parties to recover personal loans from employees through salary deductions.

Africa Polysack further emphasized that it operates strictly within the provisions of Uganda’s labour laws and only effects deductions that are statutory or legally authorised.

“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.

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

Management stressed that private borrowing arrangements entered into by employees cannot be attributed to the employer in the absence of credible evidence directly linking the company to those transactions.

Africa Polysack reiterated its commitment to lawful employment practices, transparency in payroll administration, and full compliance with Uganda’s Employment Act and other labour regulations.

The company further advised employees to deal only with licensed and regulated financial institutions when seeking loans or other financial services, cautioning against informal or predatory lenders that may expose workers to financial exploitation and hardship.

Management maintained that the company remains focused on protecting employee welfare, maintaining operational integrity, and safeguarding its corporate reputation against what it described as unfounded allegations.