European Union cuts aid to Uganda

Aug 12, 2010

THE European Union has withheld sh8.5b budget support to Uganda over corruption. The Government and the union had signed an agreement for a sh495b grant to be disbursed over six years.

THE European Union has withheld sh8.5b budget support to Uganda over corruption. The Government and the union had signed an agreement for a sh495b grant to be disbursed over six years.

But the union says it has stopped about sh9b and released only sh65b “due to slow progress on key indicators related to the fight against corruption”.

In a statement, the head of delegation, Vincent De Visscher, said the Government was the main agent of change of people’s lives and fighting corruption and efficient expenditure of public funds was of utmost importance. “It is not a blank cheque, but based on performance,” he said.

The EU welcomed the strong macro-economic performance and the National Development Plan, but noted that implementation of some reforms aimed at increasing transparency and value for money had lagged behind.

(adsbygoogle = window.adsbygoogle || []).push({});