{UAH} Pojim/WBK: Heavy debt MPs named

http://www.observer.ug/news-headlines/37701-heavy-debt-mps-named

Heavy debt MPs named

Written by Deo Walusimbi

Last Updated: 06 May 2015

As moneylenders plead with speaker to help recover Shs 1.5bn before term ends
Two loan firms, Kenloy Investments Ltd and Nibya group of companies, worried that they may not recover close to Shs 1.5bn from 21 MPs and 44 parliament staff, have petitioned Speaker Rebecca Kadaga.

For the loan firms, there is relatively a small chance that the highly-indebted MPs will pay up in the next 12 months before their term in the 9th parliament expires.

Kenloy Investments and Nibya Group wrote to Kadaga seeking her intervention in their bid to recover about Shs 1.5bn from 21 MPs and 44 parliament employees who they refer to as "bad debtors." The moneylenders want parliament to cut the MPs' salaries at source and remit the money to them.

"There was a proposal that parliament would stop deducting emoluments from members of parliament and other staff members," Kenloy's Manzi Tumubweinee wrote to the speaker on March 17.

"A group of financial services providers approached the parliamentary commission and this decision was temporarily waived. Unfortunately for us, we were skipped and no deductions were made in our favour for months of January and February 2015, thus there was an accumulation of unpaid arrears," Tumubweinee continued.

"We would, therefore ,  request that the deductions be made in the month of April 2015 so that those who owe us can finish before the end of this financial year 2014/2015."

MPs owe Kenloy Investments Ltd Shs 990.5m while parliament staff owe the lending firm Shs 441.7m, bringing the total to Shs 1.4bn as at March 17. Rev Fr Simon Lokodo, the Ethics and Integrity minister, and Henry Banyenzaki, his Economic Monitoring counterpart, who owe Shs 140.2m and Shs 23.5m respectively, are some of Kenloy's big debtors, according to an attachment to Tumubweinee's letter.

Other MPs being pursued by Kenloy include Bugweri's Abdul Katuntu (Shs 31m), Jie's Abraham Lokii (Shs 243.8m), Nalule Sofia Jjuuko (Shs 139m) and James Kakooza (Shs 48.5m).

More MPs indebted to Kenloy are: Frederick Mbagadi (Shs 41m), Barnabas Tinkasiimire (Shs 32.8m), Wamakuyu Mudini (Shs 69.6m), Joseph Ssewungu (Shs 12m), David Muhumuza (Shs 28m) and Bukoto South's Mathias Nsubuga (Shs 45m).

Others are: Joseph Balikudembe (Shs 11.2m), Aja Baryayanga (Shs 30m), Yahaya Gudoi (Shs 9.1m), Beatrice Mpairwe (Shs 17.3m), Baker Ssali (Shs 5.5m), and Cyrus Amodoi (Shs 550,000).

Some MPs owe money to both Kenloy and Nibya Group. The latter is seeking to recover Shs 111.6m. Nibya Group's debtors include David Muhumuza (Shs 8m), James Kakooza (Shs 25.8m), Joseph Balikudembe (Shs 26.5m) and Joseph Ssewungu (Shs 5.2m).

Others are Micah Lolem (Shs 5.2m), Nakato Kyabangi (Shs 33m) and Haruna Kasolo (Shs 7.9m).
In response to the moneylenders' request, the authorities at parliament have indicated they can't do much to compel the "bad debtors" to repay their debts. 
NOT HELPFUL
"As parliament, we have nothing to do for those moneylenders because their arrangements with MPs and staff were informal," a parliamentary commissioner who declined to be named, said.

"What can we do now?" the commissioner asked. "The deal might be between the chief accountant [of parliament], the moneylender and MP/staff, but it's informal," the commissioner added.

Meanwhile, some debtors have complained that the moneylenders are fleecing them.

"Moneylenders have been exhibiting dishonesty when it comes to dealing with MPs to the extent that they can revise the interest rates midway the loan repayment period without even involving you," an official attached to the parliamentary commission told us.

"Many MPs have been made to pay higher amounts of money than what they borrowed and some MPs plan to sue these money-lending institutions," the official added.

 Kenloy's Tumubweinee, a former MP and minister himself, denied being dishonest in his dealings with MPs.

"That statement [dishonesty] is reckless because I have never increased any interest rate and as far as I know nobody ever changes the interest rate when you have agreed, and I think it's the banks which change interest rates over inflation," he said on Tuesday.

Asked what he will do next now that the parliament commission has declined to help him, he said: "There are many options."

MPs are some of Uganda's highest-paid public officials, with each earning at least Shs 20m every month. Press reports actually indicate that this has been enhanced to higher figures.

However, constituents expect their representatives to help them solve their day-to-day financial and other demands, thus leading many lawmakers into debt.

In fact, Kenloy and Nibya are only two of the many money-lending companies doing brisk business with MPs, not to mention commercial banks. With the term of the 9th parliament about to end and MPs in campaign mode, the moneylenders are perhaps right to be concerned about their money.       
walusimbideo@gmail.com

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Heavy debt MPs named

http://www.observer.ug/news-headlines/37701-heavy-debt-mps-named

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