Police in Mpigi District have recovered 163 national identity cards and 10 photocopies from money lenders operating in Buwama Town Council following complaints from residents.The IDs were recovered during an operation conducted by Buwama Police targeting money lenders accused of illegally confiscating borrowers’ original national identity cards as collateral for small loans.
Residents said they sought police intervention after being denied access to several government poverty alleviation programmes and other opportunities that require possession of a national ID.
According to the residents, some money lenders exploit financially vulnerable borrowers by offering small loans under harsh conditions, including demanding original national IDs, charging exorbitant interest rates and collecting repayments on a daily basis.
“Whenever you go for a loan of about Shs50,000, the first thing they ask for is your national ID. By the time you finish repaying, you may have paid more than Shs200,000. Even after clearing the loan, some of them refuse to return your ID and instead pressure you into taking another loan. We have become their slaves,” residents said.
Residents further said the practice has prevented many people from benefiting from government programmes such as the Parish Development Model (PDM) and Emyooga, which are intended to improve household incomes.
“We only hear about programmes like PDM and Emyooga on the radio because we cannot apply without national IDs. The money lenders take away our original IDs instead of keeping photocopies, which has caused us to miss many opportunities,” they said.The affected residents later petitioned Buwama Town Council Mayor Abdul Rashid Nkinga, who engaged police, leading to the operation and recovery of the documents.Police arrested several money lenders found in possession of the IDs and transferred them to Buwama Police Station for further investigations.
Mayor Nkinga condemned the practice, describing it as illegal and exploitative. He called on the National Identification and Registration Authority (NIRA) and other regulatory authorities overseeing money-lending businesses to provide clear guidance on the use of national IDs in loan transactions.
“I appeal to NIRA and all relevant authorities to educate the public and money lenders on the proper use of national IDs. Many residents in Buwama have suffered because their IDs were confiscated by money lenders, yet this is not permitted under the law. As a result, they have missed out on several government programmes,” Nkinga said.
He also urged residents to embrace income-generating activities and reduce their dependence on money lenders.“We should work hard and reduce dependence on money lenders. It is unfortunate that people surrender their national IDs for loans as small as Shs50,000 or Shs100,000. If we fight poverty through hard work, these exploitative lenders will lose their grip on our communities,” he added.
Katonga Regional Police spokesperson Lydia Tumushabe confirmed the arrests and recovery of the 163 national IDs.“The suspects are currently detained at Buwama Police Station as investigations continue. As police, we strongly condemn the illegal practice of confiscating people’s national identity cards in the process of issuing loans,” Tumushabe said.
Investigations are ongoing as authorities work to identify the rightful owners of the recovered documents and establish the full extent of the alleged illegal lending practices.
