Criticism over €4m Uganda funding

The Department of Foreign Affairs should have been able to uncover sooner the fraudulent use of €4m of Irish aid funding in Uganda.

The C&AG found department staff in the country should have been aware of concerns about funding provided through Ugandan government systems before the issue was formally reported by the country’s auditor general in October last year.

That report had referred to negative media publicity at least four months earlier and it was after media coverage of alleged mismanagement of funds by the office of the prime minister that the auditor general’s investigation was prompted.

“Through its presence on the ground in Uganda, and information-sharing with other donors, the department should have been aware of concerns in relation to funding provided through Ugandan government systems, prior to publication of the auditor general’s report,” the C&AG Seamus McCarthy’s report stated.

“While this may not have prevented the fraud from occurring, it may have allowed the department to put additional checks in place that would have uncovered the fraud at an earlier stage,” it said.

The subsequent work to improve risk management for aid funding and other issues was described as appropriate and proportionate, in terms of the initial investigation, suspension of funding to Uganda, and subsequent initiatives to improve controls and address identified weaknesses.

The €4m was recovered from the Ugandan government last December and deposited in an Irish embassy account.

Some of the concerns raised in a department report into the fraud last November related to human resources at the embassy, including changes in the two key senior management posts, only part-time cover having been provided for the internal auditor’s maternity leave and a vacancy in the role of development specialist.

On foot of that internal report, handover processes at embassy level have been reviewed and face-to-face handovers are among the improvements being implemented.

The general issue of handovers across overseas missions which deliver the Irish Aid programme, including training requirements, is being reviewed.