By Ibrahim Ruhweza
The Police have warned moneylenders against taking national identity cards (IDs) as collateral.
The concern comes due to an increase in the misuse of national IDs as collateral for acquiring loans from money lending agencies.
The increasing cases, according to Police, have been highly visible in Buwenge, Jinja district; Dokolo and Amolatar districts in the Lango sub-region and 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, such as removing, taking, or handing over a national ID as collateral, is illegal, as it denies the owner the ability to use their ID for identification while travelling or when conducting other transactions,” Police spokesperson Fred Enanga said.
In a statement that was published on the Police’s website on Monday, April 17, the public was warned against using national IDs as collateral or reporting whoever is involved to the nearest Police Station for assistance.
What the law says
Under the Registration of Persons Act, Section 77(b), it is an offence if a person without authority deprives or dispossesses a holder of their national identification card or an alien’s identification card.
Under Sec. 77 (e), a person who unlawfully keeps or takes possession of a national identification card or an alien’s identification card that belongs to another person or, under Section 77 (f), is in possession of more than one national identification card or an alien’s identification card that is intended to show the person’s identity, commits an offence and is liable on conviction to a fine not exceeding 48 currency points or imprisonment not exceeding three years, or both.
The Police also warned money lenders against taking other related cards or documents, such as passports, warrant cards, 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.
