Africa Polysack Industries Refutes Claims linking them Money Lending Arrangement

Africa Polysack Industries Limited, the leading Manufacturers of High Quality Woven Polypropylene Bags, Polypropylene Braided Rope and Specialized bags for food Packaging has refuted claims by a Whistle-Blower Linking them Money Lending Arrangement, which officials say are false and should be treated with the utmost contempt it deserves.

The Company says it does not operate any internal money lending activity, whether directly or indirectly, and does not maintain any arrangement under which employee wages are used to service private loans through the payroll.

In a statement dated 20 April 2026, titled ‘RESPONSE TO ANONYMOUS WHISTLEBLOWER COMPLAINT ALLEGING AN UNLAWFUL PAYROLL-LINKED MONEY LENDING ARRANGEMENT AT AFRICA POLYSACK INDUSTRIES LIMITED’ ; copied to the Whistle-Blower (Chosen Elijah Lajja), the Executive Director Bank of Uganda, the Permanent Secretary, Ministry of Gender, Labour and Social Development, the Inspector General of Police, the Hon. Minister of State for Microfinance and Uganda Manufacturers Association (UMA), Africa Polysack Industries Limited,  the Mukono based company says beyond those 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.

‘’We refer to the anonymous whistleblower complaint which was sent via email alleging the existence of a syndicated and unlawful money lending arrangement embedded within the payroll and agent banking systems of Africa Polysack Industries Limited’’, reads in part the statement.

It further states that Africa Polysack Industries Limited takes whistleblower complaints seriously and in good faith.

‘’Upon becoming aware of the complaint, 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. Following that review, the Company found no irregular conduct, no evidence of unlawful deductions, and no proof of the allegations made in relation to the management of employee salaries or the payroll system as a whole. The investigation did not establish any internal money lending scheme, any salary interception arrangement, or any collusion between the Company and any third party for the purpose of advancing or recovering personal loans from employees through payroll’’, adds the statement from the company.

The company noted that for the avoidance of doubt, they remain fully compliant with the Employment Act, including the provisions governing payment of wages and prohibiting unauthorised deductions from employee remuneration.

‘’The Company pays employee wages subject only to statutory and other lawful deductions as may be applicable and permitted by law’’.

The Company further confirms that it does not operate any internal money lending activity, whether directly or indirectly, and does not maintain any arrangement under which employee wages are used to service private loans through the payroll.

‘’Once salaries are lawfully processed and remitted to the employees through their designated payment channels, any subsequent debits, withdrawals, set-offs, or loan recoveries, if any, are matters strictly between the affected employees and the respective financial institutions or third parties with whom they may have independently contracted, and occur without the knowledge, authority, or participation of the Employer’’, adds the statement.

Officials stated that to the extent that any employee may have entered into personal borrowing arrangements with external persons or entities, such arrangements are separate from the Company and cannot properly be attributed to the Employer in the absence of credible evidence of the Company’s involvement.

‘’The Company rejects any suggestion that its payroll system is being used as a vehicle for predatory or unlawful lending. Management remains committed to lawful employment practices, transparent payroll administration, and full compliance with the labour laws of Uganda’’.

The Company also encouraged all employees to engage only with duly licensed and properly regulated financial institutions and lenders, and to avoid informal, unregulated, or predatory lending arrangements that may expose them to serious financial hardship.

‘’Should your offices require any further clarification, the Company remains ready to cooperate and to provide such lawful information as may be necessary’’, officials said.