Minister Baryomunsi Warns Money Lenders Against Demanding National IDs As Collateral

Minister of Information, Communications Technology and National Guidance Chris Baryomunsi has ordered all moneylenders to stop demanding National IDs as collateral.

The minister made this directive while addressing the press at the Uganda Media Centre on Friday morning.

Minister Baryomunsi’s directive extends to passports, warrant cards and other documents establishing the nationality and identity of the holder. The minister’s directive comes at a time when the public has been venting their dissatisfaction with money lenders.

Over the last couple of years, money lenders have become notorious for withholding important documents as collateral. This act leaves the borrowers at the mercy of the lenders.

Since the introduction of National Identification Cards in 2014, IDs have been the main form of identification. This means that once one’s ID is held by a money lender, their day-to-day life becomes hard. Victims of this practice find it difficult to access key services both in the public and private sectors.

Minister Baryomunsi’s advise

However, according to Honourable Baryomunsi, the money lenders have been violating the law with this practice.

“I want to clarify to the public particularly those who are in the business of money lending. Going forward, it is unlawful and illegal to demand from the borrower his or her National ID as collateral.” Minister Baryomunsi.

He also confirmed the input of Attorney General Kiryowa Kiwanuka in this directive. The ICT minister encouraged lenders not to fall prey to this practice saying the Attorney General confirmed that it was illegal.

Over the last couple of weeks, Ronald Egesa, a software engineer has led an online campaign to expose money lending apps violating the law. Egesa, through his Twitter account, led a full-fledged online battle against apps including Mangu Cash and others. These according to Egesa are operating illegally and are not regulated by the Bank of Uganda.

He has since revealed several faces behind their operation and established a Chinese link. About two weeks ago, Egesa handed over his report to the Criminal Intelligence Directorate Boss Colonel Tom Magambo at his Kibuli office.