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Norwegian aid to Uganda suspended

Norwegian aid to the Ugandan state has been suspended for an indefinite period.

Norway and four other donor countries have suspended all aid to the Ugandan state following revelations of a major corruption scandal involving the misuse of some EUR 11.6 million (approximately NOK 85 million).

 

The funds were intended to support stabilisation and development efforts in northern Uganda, but instead were transferred to a number of bank accounts, including one linked to the Office of the Prime Minister in Uganda and used for purposes other than intended. Norwegian aid funds worth some NOK 27 million have been found to have been embezzled.

 

“It is particularly serious that the Office of the Prime Minister in Uganda is implicated in one of the most severe corruption cases involving Norwegian aid funds. Uganda needs to make a far more credible effort to clear up this corruption scandal,” said State Secretary Arvinn Eikeland Gadgil  at a meeting with Uganda’s Minister of Finance and Economic Planning Maria Kiwanuka in Oslo. 

 

Uganda is set to start oil production. Minister Kiwanuka and her delegation have been in Norway to gain insight into how future oil and gas revenues can be managed in such a way that they benefit the whole population. Norway has for many years cooperated with the Ugandan authorities in the petroleum sector through the Oil for Development programme.

 

(Press release)


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