Summary:
- Deputy Speaker warned that the unregulated nature of these apps poses a significant risk to society, comparing their impact to incidents in India where users have committed suicide due to harassment by similar platforms.
KAMPALA: The Deputy Speaker of the Parliament of Uganda, Rt. Hon. Thomas Tayebwa, has directed the government to present a report to Parliament on investigations into the operations of online money lending apps.
This follows numerous complaints from Ugandans about harassment and unethical practices by individuals behind these platforms.
Speaking in Parliament, Tayebwa recounted a personal ordeal with one such app, Mangu Cash, where he was falsely accused of being a “conman.” This arose after an individual who defaulted on a loan had fraudulently listed Tayebwa as their next of kin.
“Recently, I received a call from an agent of Mangu Cash threatening me to pay a loan taken by someone I didn’t know. When I explained that I had no connection to the individual or the app, the response was hostile. When I revealed my identity as Deputy Speaker, it got worse, she accused me of being a conman,” Tayebwa narrated.
He took to Twitter to share his experience, which sparked a flood of responses from other Ugandans sharing similar ordeals.
“Colleagues, people out there are suffering. These apps are a menace they use crude methods and seem untouchable. I was told about a man named Egesa Ronald Leonard who has been fighting them online, but even he acknowledges their strength,” Tayebwa said.
The Deputy Speaker warned that the unregulated nature of these apps poses a significant risk to society, comparing their impact to incidents in India where users have committed suicide due to harassment by similar platforms.
“These apps are killing people emotionally and psychologically. Money lending is a regulated business, but these operators evade scrutiny, harassing and torturing their victims with impunity,” Tayebwa said.
In response, Henry Musasizi, the State Minister for Finance, assured Parliament that the matter is under investigation. He revealed that the Bank of Uganda had received similar complaints and is working to address the issue.
“When you raised this matter, I wrote to the Central Bank. They confirmed receiving such complaints and assured us of an ongoing investigation. Once completed, the findings will be shared with Parliament and the public,” Musasizi stated.
He clarified that the actions of these apps are not a result of inadequate regulation but outright illegality. “What they are doing is illegal. Regulated money lenders operate without these problems. The challenge lies with these unregistered and unscrupulous actors, and we are committed to addressing it,” Musasizi added.
As Ugandans await the outcome of the investigations, Tayebwa’s call has reignited a conversation on the need for stricter enforcement of financial regulations and better protection of citizens from exploitation.
