17 December 2012

Uganda: Kiruhura Money Lenders Cautioned

Kiruhura Grade I Magistrate Edith Mary Mbabazi has cautioned money lenders in the district against taking people's property, describing it as an illegal act.

She said money lenders were charging abnormal interest rates which are not in line with interest rates recommended by the central bank. "People's property has been taken by money lenders illegally through unlawful agreements. They can make an agreement of sh1m with a borrower and at the end demand 100% interest. This is not acceptable and it is against the law," she said.

Mbabazi made the comments recently at an open day, she organised at Kiruhura court. She said the open day was meant to inspire public confidence in the judiciary. Mbabazi called upon LC courts not to recognise such agreements money lenders make with borrowers. She urged them to ask the money lenders for evidence beyond those agreements.

Kiruhura court began operations in December 2011. Previously, litigants had to go all the way to Mbarara. Mbabazi said the Judiciary was ready to handle all kinds of disputes without fear or favour.

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