Authorities in Mbarara City have given money lenders a one-week deadline to return National Identification cards held as loan collateral or face legal action.
During a press briefing, Resident City Commissioner (RCC) Catherine Kamwiine condemned the practice, calling it illegal and detrimental to citizens who rely on their IDs to access essential services such as passports, employment, and government programs. She stressed that without national IDs, many individuals are excluded from poverty alleviation initiatives like the Parish Development Model and Women Entrepreneurship programs.
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Kamwiine urged affected residents to report cases to her office for intervention, emphasizing that even if borrowers willingly surrendered their IDs, the act remains unlawful.
Local resident Gladys Gumisiriza shared how losing her ID to a money lender prevented her from processing a passport for an overseas opportunity, underscoring the serious consequences of the practice.
A representative from a money lending company confirmed they had ceased the practice in compliance with a presidential directive and urged others to follow suit.
The RCC has called on the public to report any ongoing cases to ensure swift action against non-compliant lenders.
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