Speaker Anita Among has threatened to cancel the Memorandum of Understanding (MOUs) that Parliament struck with various money lenders, after several complaints of harassment and high interest fees the MPs are being charged.
“And money lenders who are harassing MPs with very high interest rates, even if the MP passes one day, and yet the easiest way to get their money is from Parliament, I am going to cancel those MoUs between those money lenders and Parliament. I will do it, because I can’t afford having MPs every time in court, especially those who are dealing directly with Parliament, they must behave,” Among said.
The Speaker’s threats followed a complaint raised by Yusuf Mutembuli (Bunyole East) who tasked the Minister of State for Finance (General Duties), Henry Musasizi to explain why he has failed to fulfil provisions in Section 90(1) of Tier 4 Microfinance Institutions & Money Lenders Act, 2016 that mandates the Minister to put in place minimum interest rates to be charged by the money lenders, that has left some MPs victims to the schemes orchestrated by money lenders.
“As you are aware, most of our colleagues have been arrested, taken to prisons because of unregulated interest rates. My question to the Minister is, when is he going to come up with this interest so that he gives the maximum interest rates that the money lenders must charge because this is how we are going to protect Ugandans. Otherwise, we have left money lenders charging 150%, others are charging 300% because section 90 hasn’t been invoked by the Minister for purposes of regulating the maximum interest rates,” said Mutembuli.
Section 90 stipulates; (1) The Minister may, in consultation with the Authority, by notice in the Gazette, prescribe a maximum interest rate which a money lender shall charge.
The provision in section 90(2) further adds that; A money lender who charges an interest that is higher than the maximum interest rate prescribed by the Minister commits an offence and on conviction, is liable to a fine not exceeding fifty currency points and the court may, in addition to the fine order that the money lenders licence be cancelled and the money lender pays the borrower any money paid in excess as a result of the interest rate charged.
Asked by Speaker if he is aware of this provision, Musasizi replied, “Yes I am aware because I enacted it. What I need to follow up is whether the instrument was worked on or not and I report back to the House.”
Speaker gave Minister Musasizi one week within which to report back to Parliament on how far Government has gone in enactment of these regulations.
