The Prime Minister of Uganda Dr. Ruhakana Rugunda has distanced himself and his son Kwame against allegations that the two are involved in a Ponzi schemes in which Ugandans have lost a fortune.
The allegations were made by some Members of Parliament (MPs) including Rubaga South MP Moses Kasibante in which they linked Dr. Rugunda and his son Kwame to the recent scandal in which a number of Ugandans lost millions of hard-earned money.
In a February 6, Statement to Parliament, Dr. Rugunda said: “Whereas it is true that my son Kwame is involved in promotion of some of the new technologies within the fourth industrial revolution, such as block chain technology, it is false that his business is associated in any way with ponzi schemes.”
Kwame Rugunda is the CEO of CryptoSavannah, a company that promotes the block chain technology which is focused on building block chain solutions and providing advisory services.
Last year, two companies; Global Crypto currencies and Dunamis Coins closed and cost hundreds of people billions of shillings. It is estimated that Dunamis Coins closed with claims of up to US$2.5m.
Rugunda says that although the government created a National Taskforce on the 4th Industrial Revolutio, to study the applicability of block chain, internet of things, cloud computing technologies, the ponzi schemes are not.
Rugunda said: “Crypto currencies and Ponzi schemes are two different issues, but the ongoing debate doesn’t distinguish them, presenting them as related, The mix up is as a result of ponzi schemes, referring to themselves as crypto currencies, in an attempt to lure people to defraud them.
This has caused society to think that ponzi schemes may use cash, or may use gold or may use crypto currencies, but their underlying motive is to defraud society, which is a crime punishable by law.