UGANDA: MTN Addresses Public Outcry Over Unexplained Mobile Money Deductions

Telecom giant MTN Uganda has responded to growing public outcry after several mobile money users reported unexplained deductions labeled as "adjustment" costs. The issue, which surfaced on social media, has left many Ugandans frustrated and demanding accountability.

The controversy began when numerous customers noticed unexpected reductions in their mobile money balances without prior notice or explanation. Many took to platforms like X (formerly Twitter) and Facebook to express their grievances, accusing MTN of unfair deductions.

In response, MTN Uganda issued a statement acknowledging the concerns and explaining that the deductions were part of system adjustments. “We are aware of the issues raised by our customers regarding recent mobile money deductions. These adjustments were necessary to rectify discrepancies in past transactions,” the company stated.

However, this explanation has done little to calm affected customers, some of whom claim they were not informed about the deductions in advance. “How does a company just take money from my account without warning?” questioned one user online. Others have called for regulatory intervention, urging the Uganda Communications Commission (UCC) and the central bank to investigate the matter.

Financial analysts suggest that such "adjustments" could stem from system errors or reconciliation of past transactions. However, they stress the importance of transparency in handling customer funds. “Any financial institution must communicate clearly with its users when making deductions,” said economist David Kato.

As public pressure mounts, consumer rights groups are demanding refunds for affected users and greater oversight on mobile money operations. With mobile money playing a crucial role in Uganda’s economy, this controversy highlights the need for stronger consumer protections and clearer policies on transaction adjustments.

MTN Uganda has assured customers that they are reviewing complaints and will provide further clarification in due course.

SOURCE: AGENCIES