MPs want govt to bail out collapsing businesses

Members of Parliament have appealed to the Government to expedite plans for a stimulus package for Ugandans whose businesses have either collapsed or are about to close.

The MPs said several Ugandan businesses were affected during the over three months of partial lockdown and as a result, some have either collapsed or are struggling to keep afloat.

They also said the situation has been worsened by commercial banks and moneylenders who have confiscated people's property.

"We have seen cases where President Yoweri Museveni has intervened, asking banks not to take over people's houses and businesses. But they are so many Ugandans whose properties have been taken over by commercial banks after they failed to pay their loans," MP Muhamad Nsereko (Kampala Central) said.

Maurice Kibalya (Bugabula South) said many Ugandans, especially school proprietors, clinic and shops owners upcountry are suffering and need urgent intervention.

"The executive is being insensitive to Ugandans that are suffering. The Government has left them in the hands of commercial banks and moneylenders," he said.

Kibalya proposed that the finance ministry should bring to Parliament a supplementary budget to support businesses.

MP Ibrahim Kasozi (Makindye East) said: "The President had directed Bank of Uganda — which supervises commercial banks — to take action, but banks are confiscating people's properties and auctioning them. It is our appeal to the Government to intervene," he said.

Addressing the nation on April 14, President Museveni said the Government would speak to banks not to confiscate people's collateral during the COVID-19 lockdown.

"We are going to discuss with the banks. I cannot support that banks to confiscate people's property. They should see a way of stretching out that loan repayment period," the president said. Traders had asked banks to ease loan repayment conditions to borrowers whose income streams have been affected by the global COVID-19 pandemic.