Money lenders in Lira City arrested over retaining clients’ national IDs as collateral
According to Patrick Jimmy Okema, the North Kyoga Regional Police Spokesperson, the arrest of the trio follows complaints from some people who are unable to benefit from the Parish Development Model...
LIRA CITY, August 6, 2024 – Police in Lira City West Division have arrested three money lenders in Lira City for allegedly keeping the national identity cards [IDs] of their clients as collateral.
The suspects are Daniel Mabasa, 19-year-old resident of Kichope cell, Eria Rwamwozho 17-year-old a resident of Kichope and Job Aojan, 26, and a resident of Ober Kampala cell in Lira-City.
The suspects work with the Mindful SMC Micro Finance in Te-atat, and Ben World located along Obote Avenue in Lira City.
According to Patrick Jimmy Okema, the North Kyoga Regional Police Spokesperson, the arrest of the trio follows complaints from some people who are unable to benefit from the Parish Development Model [PDM], a government programme meant to help the active poor improve their household incomes. To benefit from the PDM, one must present his/her original national ID.
“This follows complaints raised to the Office of the Resident City Commissioner Lira-City about missing out on government programmes, that is to say the PDM, and other programmes,” Okema said.
Okema said security officers recovered more than 149 national IDs and other credential from the two money lending institutions [Mindful SMC Micro Finance in Te-atat, and Ben World].
Okema however advised the money lenders to keep other items allowed by law as collateral in the loans business. “We recovered 149 Ugandan National Identity cards, one Rwandan national identity card, and Ugandan passport, we advise the money lending companies to use other documents instead of National Identity cards as security while issuing out loans to their clients,” Okema advised.
Under the Registration of Persons Act, Section 77 [b], it is an offence if a person without authority deprives or dispossesses a holder of his or her national identification card or alien’s identification card; under Sec. 77 [e] unlawfully keeps or takes possession of a national identification card or alien’s identification card that belongs to another person; and section 77 [f], is in possession of more than one national identification card or aliens’ identification card that is intended to show the person’s identity, commits an offence and is liable on conviction to a fine not exceeding forty-eight [48] currency points or imprisonment not exceeding three years or both.
The suspects are being detained at Lira City West Division Police Post for further investigation.
According to government, national IDs have no economic or monetary value and are supposed to be used exclusively for identification purposes. Therefore, any act of confiscation, removing, taking or handing over a National ID, as collateral is illegal, as it denies the owner, the ability to use their National ID for identification while travelling or when conducting other transactions.
All money lenders in Uganda are supposed to converse themselves with regulatory do’s and don’ts by the Uganda Microfinance Regulatory Authority [UMRA]. In their guidelines, a money lender shall not take a 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.
https://thecooperator.news/umra-ursb-summon-money-lenders-for-crucial-meeting-in-kampala/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
Views: 20
