Kalangala RDC: Village Leaders Must Reject Risky Loan Deals

Kalangala Resident District Commissioner Fred Badda has cautioned village leaders, particularly LC1 chairpersons, against approving loan agreements that could put residents at risk.

During a leadership training session in Bufumira Sub-county, Mr. Badda emphasized that leaders should not sign documents falsely stating that a borrower has sold their property when it has only been pledged as collateral. He also strongly condemned loan agreements that demand the surrender of a borrower’s national identity card as security.

“I don’t want to see any LC1 chairperson appending their signature to an agreement showing that someone requesting a loan has sold their property when they have only put it up as security,” Mr. Badda stated, adding, “I also don’t want to see any LC1 chairperson appending their signature to any loan agreement that requires the borrower to surrender their national identity card as security.”

He highlighted that some islanders remain trapped in poverty due to leaders failing to properly guide residents in financial dealings. Mr. Badda urged leaders to actively protect their constituents from predatory lenders who may disappear when loan repayment is due, only to reappear and seize property.

The RDC also addressed local by-laws, warning leaders against enforcing rules that mandate LC1 chairpersons to deduct 10 percent from land sale proceeds. He suggested that local councils should explore alternative methods for generating revenue.

The training, organized by Kyamuswa MP Carolyn Birungi Nanyonddo, aimed to refresh leaders on their responsibilities and relevant laws. Similar training sessions are planned for other sub-counties.

Kalangala District Police Commander SP Hillary Nuwahereza and Senior Superintendent of Prisons Ivan Selemba also addressed the leaders, emphasizing transparency in dispute resolution and the importance of resolving minor conflicts at the village level to prevent overcrowding in prisons.