Denmark Warns of Aid Cut to Uganda

{{The Danish Government has warned it may cut development assistance to Uganda if urgent measures are not taken to block the theft of public resources.}}

Development Cooperation Minister Christian Bach said in an interview on Friday that the fraud in the Office of the Uganda’s Prime Minister was a clear signal that “this is not the right country to invest in”.

He added: “Uganda is simply signalling that some African governments cannot handle money entrusted to them, and this [is] going to make it difficult for us [as] ministers in Europe to move forward with budget support. I believe it will make it difficult for the State to deliver services to its people.”

The Danish minister was in Uganda to appraise projects financed by his government and hold discussions with government officials, including Prime Minister Amama Mbabazi, about what he called “the serious” ramifications of the OPM fraud on the country’s ties with donors.

A forensic audit by Auditor General John Muwanga revealed that more than Shs60 billion was misappropriated, but donors speak of only $13 million (Shs33.8b) – an unexplained disparity.

NMG

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