Government of Uganda has suspended at least six labour export companies from operation over fraud related claims after they were accused of charging illegal registration and placement fees.
The
suspended companies include Middle East Consultants, Elite Placement
Consulting, Eagle Supervision, Elite Winners Agency, Spotlight
International and High Ground International Limited.
“These companies
have been suspended and have been directed to desist from any acts of
labour externalisation as from February 2020. Any one dealing with them
does so at his / her own risk,” said the Ministry of Gender, Labour and
Social development said in a statement dated February 18.
The
Ministry’s Permanent Secretary, Mr James Ebitu said that the decision
followed complaints received regarding unscrupulous actions of charging
of illegal registration and placement fees.
He said he had written to
the companies directing them to refund the monies collected illegally
by February 17, 2020 but they did not respond.
According to PS, the
companies had been warned that failure to refund the said monies would
lead to immediate suspension of their licenses.
“Unfortunately, a
number of companies did not comply with the said directive and have
failed to pay back these monies as of midnight yesterday (February 17).
The companies have not complied,” reads the statement.
He explained
that Regulation 29 of the Employment (Recruitment of Uganda Migrant
workers Abroad) Regulations 2005 limits the chargeable administration
fees to Shs50, 000 and that any further placement fees must be approved
by the ministry.
Mr
Ebitu also cited Regulation 29 (3) which provides that placement fees
shall be collected from a Ugandan Migrant Worker only after he or she
has signed the employment contract.
“We thank those
companies that are compliant and support our noble objective of ensuring
that migration for workers is safe, orderly, regular, productive and
dignified,” he added.
The suspension comes after complaints were
raised against the ministry and its officials for allegedly rejecting to
renew operating licenses.
In the case filed before Kampala High
Court, Competitive Manpower International Limited is seeking for orders
to compel the Ministry of Labour to renew its operating license which
expired in July 2017.
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