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{
    "id": 915006,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/915006/?format=api",
    "text_counter": 241,
    "type": "speech",
    "speaker_name": "Kitutu Masaba, JP",
    "speaker_title": "Hon. John Mose",
    "speaker": {
        "id": 13390,
        "legal_name": "Shadrack John Mose",
        "slug": "shadrack-john-mose-2"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker, for giving me a chance to add my voice to this very important amendment. First and foremost, I congratulate my colleague, Hon. Waititu, for coming up with this timely amendment to the law on contract. What is evident is that people borrow money on the understanding that they would make good use of it. Unfortunately, many people borrow without having a good business model in place to enable them do business. Consequently, the businesses fail. Commercial banks are always interested in making profit. They are interested in ensuring that they make quick gains from guarantors. This particularly leaves guarantors in a very vulnerable position. It is my contribution that first and foremost, guarantors should be cautioned when they guarantee borrowers. We have scenarios where one guarantees a borrower without first of all knowing the purpose of borrowing. They also go ahead to guarantee without even knowing the amount of money being borrowed. Therefore, it is a cautionary advice that as guarantors, we should not guarantee borrowers without knowing the essence of guaranteeing them. Nonetheless, it is always important for banks to try and recover their money from the collateral or security that the borrower provided while applying for the loan. There are many cunning people who borrow money from banks with an intention of not repaying the loan. Immediately such borrowers receive the money from the bank, they move to the next level of even hiding some of their properties. Therefore, this amendment is timely to the extent that we should be able to pursue principal borrowers fully to ensure that if they have any other properties, banks recover their money from those properties. Secondly, such defaulters should be pursued with a view of committing them to civil jail before a bank moves to the next level of calling upon guarantors to respond to their onerous duty of guaranteeing. None of these, neither the borrower nor the guarantor, should be left loose. I see something that interests me on many occasions: People are very quick to append their signatures to documents that they do not even know their contents. It really goes against even the rule of law that ignorantia juris non excusat . Before you append your signature, it is always important to know the reasons why you are doing that. However, what I am saying is that we should not let the principal borrower off the hook. The principal borrower should be made to carry his cross before we move to the next level. Therefore, I move to support this amendment Bill. I also add that, while we are legislating, I am sure we are developing our law and, it is very clear in our minds that the law is dynamic. Therefore, we will continue to develop it as times call for. This is because I also know for a fact that there are those who have suffered innocently because of the cunning nature of the borrowers. With those few remarks, I support. Thank you, Hon. Temporary Deputy Speaker."
}