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In Uganda several businesses have opened, some registered and some not registered by the government of Uganda. A case in point, there’s a booming business of lending money commonly known as Money lenders.
These usually give out short term loans to people who desperately run to them for quick cash. Their money come with requirements among these is a hard copy of the national Identity Card which is usually retained as security/ collateral.
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After cries of the Wanainchi, police and it’s sister agencies have come out to caution Ugandans against using their national IDs as collateral and money lenders have also been warned against holding client’s national IDs.
In a statement released by Police’s spokesperson Fred Enanga, areas of Busoga region, Dokolo and Lango have reported cases of money lenders confiscating clients’ National IDs as Collateral
Read Police’s Full Statement Here.
The Police and Sister Security Agencies, are concerned against the increased misuse of National IDs as collateral, especially in Buwenge district, Busoga Region, Dokolo and Amolatar district in Lango sub-region, and in the Greater Kampala area. As you are all aware, 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.
We would like to call upon anyone whose National ID was used as collateral or confiscated to report to the nearest police for further assistance. 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.
All money lenders should converse themselves with regulatory do’s and don’ts by the Uganda Microfinance Regulatory Authority. 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.
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