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NIRA warn on use of National IDs as loan security
The first batch of national ID cards will expire at the start of next year. Photo | File
What you need to know:
- National ID cardholders are thus advised to desist from using National Identification Cards as security for obtaining loans
- Any person who commits the offence and is convicted is liable to a fine or faces imprisonment not exceeding three years or both.
The National Identification and Registration Authority (NIRA) has issued a warning prohibiting the use of National Identification Cards, (IDs) as security for obtaining loans. NIRA is a government body in charge of registering and issuing the IDs to people.
“NIRA would like to draw your attention to Section 69 of the Registration of Persons Act, 2015 which clearly states that an issued National Identification Card remains the property of the Government of Uganda,” the authority noted in a September 13 public statement.
It added that; “National ID cardholders are thus advised to desist from using National Identification Cards as security for obtaining loans.”
Money lenders who have been retaining National Identification Cards as security for loans have also been advised to stop with immediate effect, saying that the practice is illegal and also violates the rights of the cardholders.
“The public is encouraged to report to any nearest NIRA Office, any person who has retained their national identification card as security or collateral. National identification cards are vital government-issued documents that serve as proof of identity and citizenship,” it added.
The NIRA warning comes at a time when last week, police in Kampala arrested a one Evans Kukiriza who broke into a money lender’s office along Kanaba-Ndejje Buasabala road and stole 104 national identity cards that people had deposited as collateral.
In April this year, police issued a warning to money lenders to stop using National Identification Cards as collateral security, saying Ugandans whose cards are withheld by money lenders cannot identify themselves or make certain transactions where national IDs are required.
Speaking to the media then, Mr Fred Enanga, the Police spokesperson said it is illegal and also criminal [retaining national IDs as collateral] and any person who commits the offence and is convicted is liable to a fine or faces imprisonment not exceeding three years or both.
According to section 77 of the Registration of Persons Act, 2015, any person who without authority deprives or dispossess a holder of his or her national Identification card, commits an offence.
