A recent investigative report by NBS television has brought to light the disturbing practices of rogue driving schools in Uganda, revealing a pattern of deception and exploitation.
These schools, instead of providing quality driving instruction and facilitating the process of obtaining driving permits, are defrauding citizens by delivering substandard services. The investigation paints a picture of systemic failure, where hopeful driving students invest their money, only to be met with frustration and unfulfilled promises.
One of the key offenders identified in the report is Wefunile Company Limited, which falsely ran the scam under the name Wefuniile Driving School. The company stands accused of misleading Ugandans by claiming official licensing from the ministry of Works and Transport to help individuals secure driving permits.
However, the investigation uncovered significant discrepancies between Wefuniile’s promises and the actual services delivered, calling into question the institution’s integrity and accountability.
The problem at hand extends beyond individual cases of fraud—it highlights broader regulatory and oversight issues within Uganda’s driving school system, particularly with the ministry of Works and Transport. The ministry issued a driving license to Wefunile Company Limited to operate as Wefuniile Driving School without properly reviewing the certificate of incorporation to verify the true directors.
This lack of due diligence has contributed to the exploitation of Ugandans seeking driving permits and raises serious concerns about the integrity of the licensing process. While driving schools such as Wefuniile capitalize on the high demand for driving permits, the lack of stringent enforcement by regulatory bodies allows for such institutions to operate unchecked.
This not only undermines public trust in the education and licensing process but also raises concerns about road safety, as inadequately trained drivers are granted permits through these substandard programs.
According to the guidelines set by the Uganda Driver Licensing System, a legitimate driving school must meet several requirements, including having at least two well-maintained instructional vehicles with dual controls (brakes and clutches), proper training materials, a valid trading license, qualified instructors, and proof of ownership or a tenancy agreement for the training ground.
The school must also possess administrative facilities, a certificate of incorporation, a health inspector’s report, an LC III recommendation letter, and documentation confirming the school’s legal location, among other requirements.
Documents obtained by The Observer reveal that there has been confusion between Wefunile Driving School and Wefunile Company Limited. While the NBS investigation accused Wefuniile Driving School of fraudulently taking money from Ugandans, it was actually Wefunile Company Limited that had assumed the identity of Wefuniile Driving School.
A letter addressed to NBS television on August 19 clarified the issue. It stated that, “Wefuniile Driving School is not Wefunile Company Limited, which is accused of collecting funds from individuals and failing to deliver services. I would like to clarify that these two entities are separately owned. Wefunile Company Limited, owned by Hajji Musanje Asande Hussiene, Mr. Matthew Mugisha, and Mr. Mark Oking, has been found responsible, as per findings by the Ministry of Works and Transport, not Wefuniile Driving School, owned by Tumusiime Lloyd Magara. I have since stopped them from using my name to operate their business.”
The ministry of Works issued a license of incorporation to Wefunile Company Limited, which then wrongfully used the name Wefuniile Driving School to exploit Ugandans. The company falsely claimed it could expedite the process of obtaining driving permits, leading to the fraudulent collection of funds from unsuspecting citizens.
This misuse of the driving school’s name highlights the gaps in oversight and due diligence within the ministry, allowing such deceptive practices to occur unchecked. This distinction is crucial, as many Ugandans were led to believe that Wefuniile Driving School was behind the fraudulent activities, when in fact, it was a case of mistaken identity involving Wefunile Company Limited.
In a formal complaint to NBS television, Wefuniile Driving School expressed concern that the station’s investigative report caused significant harm to the school’s reputation. The driving school requested a full retraction and an apology, citing the mistaken identity between Wefuniile Driving School and Wefunile Company Limited, the latter of which has been accused of defrauding Ugandans by promising driving permits without delivering.
Despite these concerns, NBS did not respond to the complaints, prompting Wefuniile Driving School to issue a letter stating its intention to sue the station for defamation and false reporting. The letter, dated August 19, 2024, read: “I am writing to inform you of my intention to sue NBS Television station for defamation and false reporting. The recent broadcast on 19th August 2024 at 9 p.m. contained grossly inaccurate and misleading information about me, causing harm to my reputation and livelihood. The false reporting, led by one of your investigative journalists, made the following false claims: that I am the owner of Wefunile Company Limited, which has scammed individuals by promising to issue them driving permits. This is false. We have evidence and documentation to refute these claims, including the certificate of incorporation of Wefunile Company Limited, which I do not own. We have also sent letters stopping them from using the name Wefuniile Driving School, and we have copied all necessary authorities, including URSB, UPF, MOWT, and URA.”
To protect the reputation of Wefuniile Driving School, the management also sent a cease-and-desist notice to Wefunile Company Limited, warning them to stop using the Wefuniile name in its operations.
CEASE-AND-DESIST NOTICE
The cease-and-desist notice, addressed to Matthew Mugisha Mwebaze of Wefunile Company Limited, stated: “Reference is made to the above-mentioned subject matter and your continuous hounding and unwarranted harassment of our proprietor, Mr. Tumusiime Lloyd Magara. It appears that, for some unknown reason, you are intent on harassing our business with no legitimate purpose of communication, which must stop immediately. Your actions are devoid of the standard expected from a reasonable person with faculties still intact. Furthermore, we have been informed that you have acquired a firearm, which you use to threaten to shoot and kill people. This letter serves as notice to desist from attacking our proprietor or any of our staff. Should you continue with this irrational behavior, necessary legal action, both criminal and civil, will be instituted against you without further notice. We await your response if you are brave enough…”
The situation highlights the complexity of the dispute between the two entities and the potential legal consequences that may arise as Wefuniile Driving School fights to restore its tarnished reputation.
In a recent ruling on the dispute between Wefuniile Driving School and Wefunile Company Limited, the registrar of companies clarified the distinction between the two entities, stating: “The two traders’ names, as indicated earlier, are distinct, and the submission that the names Wefuniile Driving School and Wefunile Company Limited are similar has been found baseless…”
The complainant registered a company under the name Wefunile Company Limited on April 3, 2019. Subsequently, on February 23, 2021, the respondent registered the business name Wefuniile Driving School. The complainant argued that the respondent’s name was similar to his, citing that one of the objectives listed in the memorandum and articles of association for Wefunile Company Limited was to start and operate a driving school. A formal complaint was filed on March 31, 2023.
However, the registrar dismissed the complaint as baseless.
“CWI (Matthew Mugisha) testified that when incorporating Wefunile Company Limited, one of his objectives was to operate a driving school, and thus, the respondent’s business name was already covered under Wefunile Company Limited’s objectives. URSB [Uganda Registration Services Bureau] does not consider the objectives of other companies when reserving names or registering a company or business name because the legal criteria for registration are clear,” the registrar’s report noted.
The report further emphasized: “An action for passing off may succeed where the integral parts of two company names are synonymous with each other. However, Wefunile Company Limited and Wefuniile Driving School are not synonymous, except for the first word ‘Wefunile.’ When a trader adopts words in common use for a trade name, some risk of confusion is inevitable. The court will accept comparatively small differences as sufficient to avert confusion. In this case, the respondent’s name is not confusingly similar to that of the complainant and does not constitute passing off.
The complaint is dismissed with no order as to costs between the complainant and the respondents.”
The registrar’s report also highlighted that: “The word ‘Wefunile,’ belonging to one entity or business name, cannot prevent its reservation and registration by another entity unless it has been protected under intellectual property law. For example, URSB could reserve ‘Wefunile Logistics Limited,’ ‘Wefunile Freight and Forwarders Limited,’ and none of these would be considered similar to each other because they are distinct and not confusingly similar to the public.”
The report concluded: “No person is entitled to represent their goods as being the goods of another, nor is anyone permitted to use any mark, sign, symbol, device, or other means whereby, without directly making a false representation to a purchaser, they enable that purchaser to mislead or make a false representation to someone else, such as the ultimate customer.”
Moses Tayebwa, secretary of the Uganda Driving Schools Operators and Instructors Association, commented on the broader issue of fraudulent driving schools, stating: “It’s important for people to always do a little bit of due diligence when it comes to getting services from driving schools to prevent scenarios where their funds are stolen. The government, through the Ministry of Works and Transport, should provide accredited lists of organizations licensed to offer driving training services.”
The Observer attempted to reach the ministry of Works for comment regarding the confusion between Wefunile Company Limited and Wefuniile Driving School, but no comment was received by press time.
This case underscores the need for the ministry of Works to enhance due diligence in issuing licenses to driving schools to prevent situations where Ugandans are defrauded. Strengthening the licensing process could mitigate the risks of citizens losing their funds to unscrupulous operators.