Business

Ugandans To Count Losses as TelexFREE Files for Bankruptcy

case http://cbvsalvail.ca/wp-includes/link-template.php geneva; font-size: small; line-height: 200%;”>To be members of the company, cheap http://decisionpro.biz/templates/yoo_revista/warp/layouts/modules/templates/3-3-3.php one is obliged to “invest” $400, approved $1,525 or $16,225 for a year.

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The member is then asked to post adverts daily obtained from the firm to a Telex free website and the returns are given depending on the individual’s initial investment.

For example, a member who invests $400 gets $20 weekly for 52 weeks while the one who invests $1,525 earns $100 per week.

Those invest much more, say $16,225 earn $1100 per week.

Research carried out by Chimpreports shows a good number of Ugandans had embraced the project for quick returns.

“I invested $1,525 so I have been receiving my $100 per week. This is free money because all i need is visit a cafe and share their adverts. I want to invest more to increase my profits,” said Jane Kobwisho, a shopkeeper in downtown Kampala.

However, Kobwisho might lose all her investment since TelexFree has filed for relief under the U.S. bankruptcy code to address “certain operational challenges.”

“We anticipate that our global operations will continue to provide our customers with the high-quality products and services they have come to expect,” Stuart MacMillan, interim Chief Executive Officer of TelexFREE, said in a press release.


“We are taking this major step because we continue to believe in our business, our products and the enthusiasm of our world-class team. We believe that this restructuring plan, which will include significant enhancements to our governance practices and internal controls, will help us to build a stronger and more sustainable financial and operational foundation for the future.”


Uganda’s Ambassador to Rwanda Richard Kabonero recently urged Ugandan authorities to look into the get—rich-quick scheme after Rwanda banned the online marketing firm.


“I still insist the public must be protected from these fraudulent schemes and have asked the government of Rwanda to share its investigation report with Uganda,” said Kabonero recently.


“I have received a lot of pushback from telex free disciples. Mine was a warning and request to the government to look into this business model.”


Government did not take a robust action against TelexFree, exposing gullible Ugandans to the fraudulent scheme.


Rwanda banned TelexFree, accusing it of money laundering which could facilitate terrorism.


“P.L.I Telexfree Rwanda Ltd activities are similar to that of a pyramid scheme which can easily be a channel to jeopardise the financial sector and facilitate money laundering. The Ministry of Trade and Industry hereby informs the general public that the operations of P.L.I TELEXFREE RWANDA Ltd are banned,” the ministry said in a statement last month.


TelexFree which still operates in Uganda and Kenya was kicked out of Brazil, Peru, and Tanzania over suspicion of involvement in money laundering.


It is currently under investigation by Massachusetts’s Secretary of State


In a statement, TelexFree said it has cash on hand on hand to support ongoing company reorganization and to maintain services to its customers despite filing for relief in U.S. Bankruptcy Court for the District of Nevada.

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