€4m in Irish Aid funding is missing

Tánaiste and Foreign Affairs Minister Eamon Gilmore suspended all financial assistance channelled through the office of the Ugandan prime minister Yoweri Museveni after €4m of Irish Aid funding went missing in a suspected fraud.

It is believed the money was transferred to unauthorised accounts.

Auditors from the Department of Foreign Affairs flew to the capital Kampala yesterday to investigate the alleged misappropriation of funds, which was earmarked for education, policing, and tackling HIV and Aids.

Mr Gilmore said he was deeply concerned over the alleged fraud, which was identified by Uganda’s own auditor general and reported to Irish officials this week.

“I regard it as intolerable that any development assistance should be misappropriated or diverted,” said Mr Gilmore.

“The Government will not provide financial support under our development co-operation programme unless it is clear that Irish money is being spent for the purpose for which is was allocated.

“I have also asked the Irish ambassador [Anne Webster] in Kampala to convey to the Ugandan government how serious we take this issue and make absolutely clear that while we are very proud of our aid programme, while we see it as very important, we will not tolerate any disapprobation or any misuse of Irish taxpayers’ money.”

The alleged fraud involves €12m in aid last year from four countries — Ireland, Norway, Sweden, and Denmark — for the peace recovery and development programme for northern Uganda. It was established to rebuild the region after decades of conflict and devastation.

A team of officials, led by the evaluation and audit unit of the Department of Foreign Affairs, will try to establish where the money is and if it can be recovered.

Mr Gilmore said the Government, through Irish Aid, was due to pledge €17m to the east African state but will withhold the €16m still due pending the probe.

The payment of another €15m of taxpayers’ money to NGOs in the country, such as Goal, Trócaire, World Vision Ireland, and Self Help Africa, will continue.

Mr Gilmore said Ireland had a strong programme in the region, which suffered from internal conflict and ravages of Joseph Kony and his Lord’s Resistance Army.

Mr Gilmore also hit back at critics who have raised concerns over financial aid going directly to African governments, adding that Irish Aid also supported programmes such as the independent auditor general who uncovered the alleged fraud.