Crime & Investigation

FULL STATEMENT: Donors Vow Strong Action Over OPM Scandal

visit web geneva; font-size: small;”>Kazinda reportedly colluded with officials in Bank of Uganda and Finance Ministry to exploit loopholes in the financial management systems to facilitate the theft.

Ireland also responded by sending a team of three officials to follow up the matter here in Kampala.

They met Prime Minister Amama Mbabazi and Permanent Secretary in the OPM, whose signatures were forged by Kazinda in the fraudulent transactions, at the formers’ office in Kampala on Monday.

Below is the statement in full issued last Friday by Gunilla Carlsson, the Minister for International Development Cooperation.

The Office of the Auditor General of Uganda uncovers embezzlement of funds from countries including Denmark, Norway and Sweden

On Friday 19 October 2012, the Office of the Auditor General of Uganda published a report that was strongly critical of the Ugandan Government’s administration of development assistance from Denmark, Norway, Ireland and Sweden.

The report indicates extensive irregularities and fraud with regard to half of the EUR 22.9 million in development assistance.

This development assistance went to the Ugandan Government´s plan for peace-building and development in the impoverished northern region of Uganda.

The development cooperation ministers from Denmark, Norway and Sweden take a very serious view of the information about financial irregularities. However, it is positive that it was Uganda´s own national audit office that uncovered the irregularities.

In a joint statement, the ministers say:

“We want full clarity with regard to the scale of the irregularities. If the information is correct, there must be legal consequences. We will hold in-depth discussions with the authorities in Uganda. We will therefore meet with the Auditor General on 25 October and Prime Minister Mbabazi on 29 October. When we know more about the circumstances of what has happened we will decide how we will act.”

The Office of the Auditor General report concerns financial support to the Ugandan Government’s plan for stability and reconstruction in northern Uganda and Karamoja via the Peace, Recovery and Development Plan for Northern Uganda (PRDP).

The initiatives concern healthcare clinics, schools, roads, water and judicial institutions, etc.

For many years, Denmark and Sweden have supported the establishment of the Office of the Auditor General, which is perceived as a strong institution.

This case clearly shows that although the establishment of transparent systems takes time, it is the way forward in terms of preventing fraud.

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