Uganda says confident of renewed aid

2013-01-11 21:31

(Shutterstock)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

kalahari.com

Kampala - Uganda expects foreign donors to restore aid which makes up a quarter of its budget after the government pledged to refund stolen and embezzled funds and to prevent future pilferage, it said on Friday.

Major western donors including Britain, Uganda's biggest bilateral source of aid, suspended their financial support to the east African country toward the end of last year after allegations $13m worth of aid had been embezzled.

The money was meant for financing reconstruction projects in the north and north-eastern parts of the country, ravaged by years of a rebellion by the Lords Resistance Army.

"We're confident that with all the measures we've taken donor disbursements will resume in the second half of this year," Keith Muhakanizi, deputy secretary at Ministry of Finance told a news conference, referring to the fiscal year that ends on June 30.

"We're fully engaged with donors on a day-to-day basis and our reforms will trigger release of [aid] funds."

Renewed aid would support the shilling currency which hit a 14-month low last week. The Ugandan economy depends heavily on the donations as a source of foreign currency.

Muhakanizi said the government had started removing loopholes in public finance laws that encouraged fraud, conducting special audits in six big-spending ministries and freezing assets of officials accused of embezzling funds.

Strained relations

The government has previously said the cuts would leave it about $260m short of the money it needs to cover planned 2012/2013 spending. The central bank says the aid freeze will shave 0.7% off Uganda's economic growth.

Last month, ratings agency Standard and Poor's affirmed its B+ and B long- and short-term sovereign credit ratings respectively for Uganda but downgraded the country's outlook to negative from stable, citing strained relations with donors.

Uganda has reimbursed Ireland $5.3m worth of stolen aid and Muhakanizi said a total of $14.2m had been raised through a supplementary budget to refund all donors who alleged their aid was embezzled.

Angelo Izama, a Ugandan analyst at the US-based Open Society Foundation, described the idea of using taxpayer money to refund stolen aid as "bizarre" since it was not taxpayers who had embezzled the aid.

"Secondly, since the government can quickly marshal all this money to pay donors, the implication is that government has money and actually doesn't need aid," he said.

Officials say the money will be taken directly from government funds.

Read more on:    us  |  uk  |  uganda  |  aid  |  east africa
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

Check out the speed of this robo-cheetah!

MIT has created a robo-cheetah that will one day outrun Usain Bolt!

 
 

For chic geeks...

New GIF keyboard on iOS for added fun!
Puppy goes crazy over iPad game
Printable solar panels will bring exciting new opportunities!
Man climbs into active volcano

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

There is a tendency to fight against the current today but this will just use up a lot of energy and not get you very far. You...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.