Lira Resident District Commissioner Joan Pacotoo has suspended the operations of the Alliance for Christians in Development (ACID) Trust, an NGO, over allegations of fleecing the public and forgery.
The organisation says it supports children in different areas including providing free education and has been demanding Shs15,000 as registration fees from parents of potential beneficiaries.
However, Ms Pacotoo said no one has since benefited.
She announced the suspension last Friday after a two- hour meeting with the NGO's regional co-ordinator, Ms Christine Mengo.
"They took money from vulnerable children but did nothing to help them," she said.
"I am not giving you permission to operate in Lira unless you sort out the mess," Ms Pacotoo said.
Ms Mengo said the organisation collected Shs36million from Lira but she denied allegations that they misused the money. The Lira criminal investigations chief, Mr Tonny Oola, said inquiry into the allegations have begun.

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