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Donors cut aid to Uganda over corruption

By Vision Reporter

Added 9th August 2010 03:00 AM

DONORS have slashed aid to Uganda by at least 10%, citing government failure to address high-level corruption.

DONORS have slashed aid to Uganda by at least 10%, citing government failure to address high-level corruption.

By Sylivia Juuko

DONORS have slashed aid to Uganda by at least 10%, citing government failure to address high-level corruption.

A statement issued by a group of 11 development partners on Monday said the action follows conclusion of an appraisal of the Government’s performance in 2008/2009.

“The joint budget support development partners had originally planned to provide was $360m (sh773.4b) in form of budget support for the 2010/11 financial year. But based on the results of the appraisal, a number of partners have decided to reduce or re-programme their budget support contributions,” the donors said.

The donors that jointly finance Uganda’s budget comprise the World Bank, the European Commission and the governments of Austria, Belgium, Denmark, Germany, Ireland, Norway, Netherlands, Sweden and the United Kingdom.

They expressed concern over the Government’s failure to take action against several high-level corruption cases, especially the recommendations from the 2008 CHOGM audit reports.

They were, however, satisfied with the Government’s performance in macro-economic management during the global economic crisis.

The donors agreed that the Office of the Prime Minister and the Ministry of Finance had shown strong leadership in pushing for government reforms.

While the donors were impressed by the progress in the health, education and water sectors, they noted that performance was weak in the areas of compliance with public financial management principles, and civil service reform, which are critical for efficient service delivery. There were also not impressed by the results in the transport sector.

The assessment for the 2009/10 fiscal year will be concluded by December.

Donors cut aid to Uganda over corruption

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