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Donors: Uganda should use budget to fight corruption
16 March 2010
The East African

Kampala:  The Uganda government's oft-stated commitment to fighting corruption is set to remain merely rhetorical for another year at least, as Finance Minister Syda Bbumba presents the 2010-11 national budget this June without proposing concrete steps for stemming this major drain on the country's resources.


The Ministry of Finance, Planning and Economic Development have circulated a pre-budget working dossier to planners, and critics who have looked at it have noted glaring omissions such as a plan to fight corruption, or suggestions on how to ensure that key sectors such as roads absorb their budget allocations.  The sector has in the past failed to use up allocated funds, even though many roads in the country remain in a bad state.

 

Generally, about 20 per cent of the money allocated to run government programmes in the first half of this financial year was not spent.  Now donors who financed one-third of Uganda's last budget are considering drastic actions like withholding disbursements, reducing money they send to the country, or stopping the donor model of direct budgetary support.

 

The dossier states that the national budget for 2010/2011 will have the theme, "Strategic priorities to accelerate prosperity for all."

 

These priorities include agricultural production, private sector development and improving competitiveness, increasing the number of jobs available for youths, and improving urban infrastructure.

However, prosperity for all will remain a dream if errant government officials and private contractors who misappropriate taxpayers' money continue with impunity.

 

For instance, Parliament's Public Accounts Committee has over the past two years exposed gross financial mismanagement and outright squandering of taxpayers' money in government projects like the Commonwealth Heads of Government Meeting that Uganda hosted in November 2007.  Officials inflated budgets, awarded tenders to companies in which they had interests, and did substandard work.

 

Prior to this, corruption scandals that have drained Uganda's coffers include the misappropriation of money meant to fight HIV, malaria and tuberculosis, and later of funds for immunisation, to the tune of millions of dollars.

 

During a national budget consultation meeting, Mrs Bbumba said, "The budget for 2010/11 has been developed in the context of the national development plan, which focuses on the expansion of the production of goods and services, the consequent growth of per capita income, and the enhancement of human wellbeing."

 

The country manager of the World Bank in Uganda, Kundhavi Kadiresan, commented, "The government failure to act on high-level corruption will have implications; donors under the budget support framework are currently considering a range of actions. These may include withholding disbursements, reductions in aid, or re-programming away from direct budget support."

 

Richard Ssewakiryanga, executive director of the Uganda National NGO Forum said that although the government has talked about handling grand corruption, it should also place emphasis on petty corruption. "We want legislation that requires corrupt officials first to refund the lost or embezzled funds."



Keywords: Uganda, World Bank, donor aid, corruption, finanancial management, civil service
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