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Nabbanja said that confiscation of National Identity Cards as security for loans is a deplorable practice that must be stopped immediately
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By Our Reporter
PARLIAMENT - Prime Minister Robina Nabbanja has announced that the introduction of Digital (Electronic) Identity Cards (E-IDs) will help eliminate the practice of money lenders confiscating National IDs as collateral for loans. She emphasized that this shift will reduce dependency on physical National IDs, thereby safeguarding their integrity and intended purpose.
Nabbanja made these remarks during a plenary session in response to a query from Moureen Osuru, the Arua City Woman Representative, who sought clarity on the government’s strategy to address the misuse of National IDs by money lenders.
“Confiscation of National Identity Cards as security for loans is a deplorable practice that must be stopped immediately. The government is committed to protecting the rights and dignity of its citizens by ensuring that these IDs remain in their rightful possession and are used only for their intended purpose,” Nabbanja stated.
The Premier highlighted that the planned digital ID system will reduce reliance on physical cards, enabling electronic identity verification through mobile apps or online platforms. While acknowledging that many citizens currently lack access to the internet and smartphones, Nabbanja assured that the system would be implemented gradually to accommodate all citizens.
“This planned shift reduces the risk of physical IDs being used as collateral since digital identity verification does not require the physical handover of the card,” she added.
In related news, Parliament has amended Schedule 2 of the Anti-Money Laundering Act, exempting NGOs, churches, and other charitable organizations from the list of accountable persons in the fight against money laundering.
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