EU joins national donors in freezing Uganda aid over graft

By REUTERS
December 4, 2012 12:47

 
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KAMPALA - The European Union (EU) has become the latest donor to suspend aid to Uganda alleging the embezzlement of $13 million in aid funds by officials in the Prime Minister's office.

The EU joins Britain, Germany, Ireland, Denmark and Norway which have already frozen funds to the east African nation.

Uganda's government has said it is determined to punish all the officials involved in the theft of money meant to help fund the recovery of northern Uganda, ravaged by the Lord's Resistance Army's two-decade insurgency.

Aid funds up to a quarter of the national budget.

The withholding of funds has also hurt the Ugandan economy through the shilling currency which has lost close to 4 percent of its value against the dollar, raising import costs, since Ireland first cut its aid in late October.

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