GULU – The authorities of Gulu City have raised concern over a number of national identity cards [ ID cards ] being retained by money lenders and microfinance institutions operating in the area.
Florence Atto, the area councilor for Kanyagoga cell in Gulu East division, Gulu City recently disclosed that many women in the area have failed to access government services due to lack of national ID cards.
She explained that among the essential services which require national ID cards include medical care, banking services, and recruitment into groups that require government financial support, such as those benefiting from the Parish Development Model [PDM] and other government programmes.
The politician said at least 200 women from her area of jurisdiction have their national ID cards retained by the money lenders as security for the loans taken.
“They have borrowed multiple loans and because they cannot pay back, many of them have their national identity cards retained by the money lenders. Other borrowers have had attached their properties like houses attached,” Atto said.
Gloria Amono, one of the affected women in the area has decried the high interest charged on the loans, which said has caused the collapse of some of the small-scale businesses in the area.
Amono disclosed that when her business was collapsing, she had had no option but to tender in her national identity card as she borrowed Shs 90,000 from one of the money lenders.
“They told me that I would pay back only Shs 10,000 as interest but I had to pay them Shs 30,000 for the loan of Shs 90,000 before they could release my national ID card,” Amono told this reporter in an interview.
Nancy Akumu, a retailer in Purongo trading centre in Nwoya district said she has failed to pay back the loan of Shs 100, 000 she undertook in April this year.
My national identity card is retained and I could not register to benefit from the Parish Development Model programme which is supposed to help the poor get out of poverty,” she said.
The issue of money lenders withholding the national ID cards was raised to the city authorities in a recent meeting at Gulu Main Market convened by officials of the ruling National Resistance Movement [NRM].
During the meeting, the resident city commissioner for Gulu, Frances Jane Okili warned the money lenders to desist from retention of the national ID cards belonging to the borrowers of small monies or be discontinued from operating in the area.
She gave a one-month ultimatum to microfinance institutions holding the borrowers’ ID cards to surrender them to avoid administrative actions.
Okii explained that the national identity cards are key in granting Ugandans access to essential services, saying her office is overwhelmed with cases that require urgent attention.
The Tier 4 Microfinance Institutions and Money Lenders Act, 2016 prohibits money lenders from withholding national ID cards of the borrowers, among other documents. “A money lender shall not take National ID, passport, warrant card, or other documents establishing the identity or nationality of the holder, bank savings, ATM cards and security codes for the ATM cards as collateral for money borrowed.”
Meanwhile, the NRM secretary general, Richard Todwong who graced the meeting as chief guest urged the locals to form groups if they are to benefit from the government programmes.
“The issue of the national identity cards is a big concern that we will have to discuss further at the national level because those who don’t have them are not easily supported as they seek government services,” Todwong noted.
https://thecooperator.news/hot-debate-in-parliament-over-money-lenders-death/
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