The Common Market for Eastern and Southern Africa (COMESA) is investigating allegations of fraud and irregularities in the use of mobile money services by Airtel and MTN. Airtel is under scrutiny for violating consumer protection laws in Kenya, Uganda, and Malawi, while MTN Group faces similar allegations in Uganda.
According to the COMESA Competition Commission, these actions in Kenya, Uganda, and Malawi violated the region’s regulations prohibiting companies from misleading a customer using false representations.
Interested stakeholders and affected customers will make representations before the commission on 28th February. The notice for investigation strictly maintains that the allegations are yet to ascertain if Airtel engaged in unfair business practices – adding that investigations are ongoing.
On the other hand, MTN Mobile Money in Uganda is also under investigation for displaying differing charges for its customers when making transactions. In some cases, it is alleged that the sender’s information is not even revealed to the recipient of the money. The telecom’s hearing before the competition commission will also be held on 28th February.
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Payment platforms operating with the COMESA region–a bloc of 21 African countries–must disclose the full cost of transactions, including forex charges before they confirm any payment. The requirement aims to protect consumers by promoting transparency in money transfer fees.
By violating this provision, the telecoms are facing fraud investigation. The COMESA commission says “The alleged conducts are considered misleading and unconscionable as it denies consumers the right to material information required to make informed decisions.”
