Africa Polysack Industries Limited on April 20, 2026, formally denied allegations of involvement in an unlawful payroll-based money lending scheme, stating internal investigations found no evidence to support the claims. The company addressed the matter in a written response to government and regulatory bodies, including the Bank of Uganda and the Ministry of Gender, Labour and Social Development.
The allegations, first raised in an anonymous whistleblower complaint, accused the company of facilitating the interception of employee salaries to recover private loans through payroll deductions. Africa Polysack’s statement emphasized that its payroll processes and salary payment procedures were thoroughly reviewed, with no findings of unlawful deductions or irregular activities. “The Company does not make, authorise, facilitate, or participate in any deduction, diversion, interception, or recovery of employee salaries for private lending purposes,” the statement read.
The company’s response came a month after initial claims surfaced, with management accusing unnamed individuals of spreading false information to damage its reputation. Africa Polysack warned that failure to retract the allegations and issue a public apology could lead to legal action. It also reiterated compliance with Uganda’s Employment Act, stating all deductions from employee salaries are statutory and legally authorised.
Africa Polysack clarified that once salaries are processed through designated channels, any subsequent loan recoveries or debits are matters between employees and financial institutions they independently engage with. The firm distanced itself from private borrowing arrangements, stressing that such agreements cannot be attributed to the employer without credible evidence linking the company to the transactions.
Management urged employees to transact only with licensed financial institutions, warning against informal lending practices that could lead to financial hardship. The company reiterated its commitment to lawful employment practices and transparent payroll administration, while calling for employees to report any suspicious activities to authorities.
The Inspector General of Police and the Bank of Uganda have not publicly commented on the allegations, and no formal investigation by regulatory bodies has been reported. Africa Polysack’s statement did not specify the identity of the individuals spreading false information or outline the legal steps it may take if the claims persist.
