Derrick Ampereza
The Resident District Commissioner of Rukungiri, Steven Nsubunga Bewayo, has issued a stern warning to money lenders operating in Rukungiri district, cautioning them against the practice of confiscating National Identity cards as collateral for loans.
Nsubunga emphasized that it is illegal for money lenders to take possession of a person’s National ID because it is considered government property and cannot be seized by any individual or entity. He pointed out that any act involving the confiscation, removal, or transfer of a National ID as collateral is unlawful.
Such actions not only violate the rights of the ID card owner but also hinder their ability to use the card for identification purposes, such as traveling, participating in government programs like the Poverty Alleviation Program (PDM), or conducting various transactions.
As a result, Nsubunga urged money lenders who currently hold other people’s National ID cards to promptly return them to their respective owners. Failure to comply with this directive could lead to legal consequences, and individuals whose IDs were confiscated were encouraged to report the matter to the nearest police station or the RDC’s office.
Nsubunga also stressed the importance of money lenders familiarizing themselves with the regulatory guidelines provided by the Uganda Microfinance Regulatory Authority.
Some money lenders have engaged in unlawful activities, including using confiscated IDs in criminal activities that have led to the wrongful arrest of innocent individuals. To avoid such issues, Nsubunga called on money lenders to adhere to the laws and regulations governing their business operations.
Furthermore, the National Identification and Registration Authority (NIRA) disclosed its intention to collaborate with the police to conduct raids and apprehend money lenders who continue to accept National ID cards as collateral, mortgages, or security for loan approvals.
NIRA emphasized that National IDs should solely be used for identification and verification purposes in accordance with the Registration of Persons Act 2015.
Osborn Mushabe, the Public Relations Officer of NIRA, urged Ugandan citizens to report any money lender who persists in withholding National IDs, emphasizing the importance of compliance with legal requirements.
