Kampala — Kumi leaders have been left in shock after Ireland announced it was withdrawing direct financial support.

Ireland Charge d'Affaires Martin O'Fainin visited Kumi on Wednesday and met the district council with heads of departments to explain the abrupt end.

Irish aid funded Kumi Development Programme, which started in 1997, and Ireland had signed another three-year contract to end in 2003 with a possibility of being extended to 2006.

Kumi was recently implicated in mismanagement and failure to account for more than Shs 4bn, part of it in donor money.

The Public Accounts Committee of Parliament twice rejected explanations from Kumi technocrats.

In a meeting at Kumi Teachers' Resource Centre, O'Fainin said that aid is good if used well and it leads to progress and prosperity.

"We have to do things in the Ugandan context through the local government. Sorry for the shock," he said.

Kumi vice-chairperson Albina Opio and Chief Administrative Officer Rose Ochom earlier on said they were shocked and upset by the sudden halting of Irish support.