Donors cut Uganda aid after graft

2010-08-11 07:24

Kampala - Several donor nations have cut aid to Uganda citing inadequate government efforts against corruption, said a statement sent to AFP on Tuesday.

"The (Joint Budget Support) Development Partners had originally planned to provide $360m in the form of budget support for FY 2010/11," said the statement from 11 leading donors - including the World Bank, United Kingdom and European Commission.

"But, based on the results of the appraisal, a number of partners have decided to reduce or re-programme their budget support contributions. Total budget support disbursements will therefore be at least 10% lower than intended."

The statement cited "a failure to address high-level corruption," as a cause of the cut.

It pointed specifically to the government's disappointing response to graft allegations surrounding the Commonwealth Heads of Government Meeting (CHOGM), hosted by Uganda in November 2007.

Inquiries by Uganda's auditor general and a parliamentary panel both found evidence that senior government officials were involved in massive financial misconduct while preparing for the summit.

The vice president, foreign minister and several other top officials are currently the subject of criminal investigations related to CHOGM, but no arrests have been made, and no prominent officials have been fired.

"More than a year after the CHOGM audit reports were issued, insufficient action had been taken by government to discipline public officials and recover misappropriated funds," the statement said.

Donors provide more than 30% of Uganda's annual budget.