Auditor General warns Parliament of Uganda on failed SIMPRS

Credit reform hit a wall as a flashy movable-assets registry sputtered under weak tech links, fuzzy asset tracking, and loopholes that scare lenders away from the very borrowers it was meant to help.

Audit flags broken credit reform

• Auditor General warned Parliament of Uganda about stalled movable-asset lending.
• Targeted women, youth, and low-income earners were left out.
• Reform promise stalled by system failures.
• Uptake lagged far behind expectations.

Law and registry setup

• The Security Interest in Movable Property Act took effect in 2019.
• Uganda Registration Services Bureau built SIMPRS for lenders.
• Shs1.2 billion sunk into the digital registry.
• Land titles are meant to stop dominating collateral.

Verification mess with assets

• Most movable assets lack unique identifiers.
• Livestock and household goods hard to authenticate.
• Fraud and double-pledging risks jumped.
• Ownership checks stayed unreliable.

Missing government linkages

• No central registry for imported movable equipment.
• Warehouse receipts could not be verified.
• SIMPRS is left disconnected from other platforms.
• Cross-checking assets stayed impossible.

Licensing loopholes

• Only licensed lenders are allowed on SIMPRS.
• Uganda Microfinance Regulatory Authority is not linked.
• Real-time license checks are unavailable.
• Registry exposed to misuse.

Risk and cleanup gaps

• SIMPRS offered no cover for theft or depreciation.
• Insurance and guarantees are absent.
• Discharged loans are not auto-cleared.
• Old encumbrances lingered on the records.

Fixes urged by auditors

• Auditor General pushed urgent system integration.
• Unique identifiers for key assets are advised.
• Central equipment registry proposed.
• Platform links demanded to salvage the reform.