Uganda Police, in conjunction with other security agencies, have arrested a Mubende-based moneylender, Vianey Kalihuungu, also known as Nzabale, following accusations of operating an illegal detention facility at his home in Kacwamango Parish, Bagezza Sub-county.

Kalihuungu, who operates under the trade name Tuungane Investments Limited, was taken into custody on orders from Mubende Resident District Commissioner (RDC) Al-Hajj Umar Lule Mawiya after a series of complaints from residents about abusive lending practices and harassment.

The arrest came after a delegation of residents and leaders from various sub-counties in Kasambya Constituency approached the RDC, claiming that Kalihungu had detained several individuals who had partially paid their loans and subjected clients to exorbitant interest rates and relentless harassment.

They further alleged that he often confiscated land titles as collateral and refused to return them, even after clients had fully repaid their loans.

Among the complainants was Amos Bukiiko, who recounted to the RDC his experience of detention by Kalihuungu despite making a significant payment on his debt.

“I was detained by Kalihuungu after paying Shs1.2 million, but he issued a receipt only for Shs800,000. He has continued to harass those unable to fully pay off their debts,” Bukiiko told the RDC.

Additional reports from residents revealed that Kalihuungu allegedly detained Justus Twesigye, a boda boda rider from Kigando Sub-county, in 2018 and has continued to use intimidation tactics to control debtors.

Vincent Tumusiime Kissanja, a district councillor for Kasambya Town Council, shared the case of a woman named Birungi, who reportedly handed over her land title for 10 acres as collateral. Despite clearing her debt, Kalihuungu has allegedly refused to return her title.

Following these accounts, RDC Mawiya ordered Kalihuungu to provide legal documentation proving his business’s legitimacy.

A preliminary review revealed that Kalihuungu lacked the required permits to operate, prompting the RDC to order his immediate arrest for further investigation.

“I want the police to arrest this man and investigate these allegations thoroughly. We cannot allow someone to operate outside the law, especially when people’s rights are at stake,” Mawiya stated.

Kalihuungu, however, denied the allegations, claiming that his business operates within the law and asserting that he had never detained or confiscated anyone’s property.

“Mr RDC, these people are lying. I have never detained anyone or taken anyone’s property. As Tuungane, we operate strictly within legal parameters,” he argued.

Kalihuungu is now being held at Mubende Central Police Station as investigations continue. Uganda Police and other security agencies are expected to conduct a thorough enquiry into the allegations of illegal detention, abusive lending practices, and collateral confiscation.