15 November 2012

Uganda: World Bank to Assess Aid to Uganda

The Minister for Finance Jachan Omach says Aid Cuts could affect the implementation of the Budget. ( Resource: Uganda Budget to Be Affected by Aid Cuts )

With the continued amount of pressure from donors over the theft of over Shs20 billion from the Office of the Prime Minister (OPM) World Bank is considering slashing aid to the Kampala government.

"The World Bank Group is concerned about recent allegations of misuse of public funds in Uganda and is calling for remedial action," the international organization read the statement that was presented on Wednesday's evening.

"The World Bank Group condemns all acts of corruption for depriving countries of the means to achieve better development outcomes." However, it will continue to work with the government of Uganda and other development partners to deliver on its national policy of zero tolerance to corruption.

The Bank further noted that the recent allegations indicate that the "overall fiduciary environment" in Uganda needs to be strengthened to ensure better management of public resources.

However, it quickly added: "In light of these recent events, the World Bank Group is reviewing its development assistance to Uganda while also strengthening its own measures to ensure that its funds are used for their intended purposes."

A number of officials suspected of having been part of the OPM corruption scandal have already been interdicted as the Parliamentary Accounts Committee continues grilling top shots in the affected ministries.

Prime Minister Amama Mbabazi recently said government would refund the stolen funds before recovering it from the suspects after securing their conviction in the courts of law.

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