The Office of Prosecutor General has arrested fifteen people accused of causing huge losses to a number of Microfinance Institutions (MFIs).

The development was announced on Monday by the Prosecutor General, Martin Ngoga, who said that the former managers were arrested over the last four days. He however did not release the names of those arrested.

"For the past one year, we have been conducting investigations to ascertain who had a role in defrauding

depositors’ money in those institutions," Ngoga said during an interview at his office in Kimihurura.

Several MFIs were forced to shut down in 2006 after they ran short of funds. The Government had to intervene disbursing up to Frw 3 billion to compensate people who had deposits in those MFIs.

"The Government paid depositors up to 50 percent of their total deposits in those banks, but we intend to recover the balance from the people who owned those institutions," Ngoga said.

He named some of those MFIs as Gasabo, Intambwe, Igisubizo, Ongera, Urumuri, Urugero, Gwiza, Ubumwe-Iwacu and Iwacu.

"We are going to simultaneously pursue both former bank managers and clients who illegally obtained loans and never serviced them. We shall deal with them individually….The message to those who are implicated is to immediately go to the nearby branch of Banque Populaire and clear the arrears," Ngoga directed.

Following the closure of the MFIs in question, the Government channelled all transactions previously handled by the liquidated banks to Banque Populaire du Rwanda, a local cooperative-cum-commercial bank with branches across the country.

Ngoga added that those who were arrested would be produced in court before the end of this week.

"We have sufficient information detailing roles played by each individual and we are making more arrests," he said.

He gave examples of people who obtained loans and deposited invalid cheques as security.

"That is a criminal offence and such people will be prosecuted" He warned.

"We are committed to this exercise and shall not stop at arresting them. We are going to trace their assets, attach them and seek a court order for selling them to recover the money," Ngoga said.

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