Suspected key masterminds of counterfeiting in Kampala have been arrested by the central police.
Joseph Mugerwa who was arrested on 17th May was in possession of a million counterfeit notes.
He revealed to police that the source of the activity was a one Namyenya Hajji Tumwesigye.
With this tip, police raided Hajji Abdhulla’s home at Kagujje in Katwe and also found a bag full of counterfeit notes of different denominations.
The lady, 38 year old Sauda Namyenya was found at the home, minting the notes. She is currently in custody.
Both Mugerwa and Namyenya will be with possession of counterfeits vide SD 23/17/05/2018.
Counterfeit money is being circulated everywhere in the world these days.
While its circulation makes more money available to the people, it has some adverse effects on the economy.
Counterfeiting leads to a reduction in the value of genuine legal tender and leads to an increase in prices (inflation) due to more money being circulated.