Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

I propose to take Questions Nos. 10, 24, 39, 44, and 50, together.

I am deeply concerned about the recent misappropriation of Irish development funding in Uganda. Ireland has no tolerance for fraud or any other form of financial irregularity with regard to our development programme.

I have suspended approximately €16 million of Irish development assistance which was due to be channelled through the Government of Uganda in 2012. I initiated an immediate investigation into the misappropriation of funds by the Office of the Prime Minister. This investigation has been undertaken by a team from the evaluation and audit unit of my Department and it will report shortly. I have also emphasised that Irish funding must be repaid by the Ugandan Government and that all necessary actions must be taken by the Ugandan authorities to pursue those guilty of this crime.

This fraud was uncovered by the Auditor General of Uganda who carried out a special investigation into the handling of Irish aid funds by the Office of the Prime Minister. Ireland has been working with and assisting the Office of the Auditor General as an inherent part of our programme of building institutions which make governments accountable. The Auditor General has found that funding of €12.6 million received from Ireland, Norway, Sweden and Denmark last year was transferred to unauthorised accounts, of which the Irish Aid component is €4 million.

The independence and strength of the Auditor General is a clear sign of Ugandan Government accountability systems working well and the importance of supporting this work. While the findings of the Auditor General in this case are deeply disturbing, the fact that the Auditor General is now in a position to make these findings is a demonstration of the increased capacity and the determination of elements within the Ugandan administration to enforce accountability as to the use of government and donor money. It is only by building such national accountable systems that corruption can be eliminated.

Our ambassador in Kampala and the director general of Irish Aid met with the Prime Minister of Uganda, the Minister for Foreign Affairs and the Minister for Finance and Economic Development of Uganda, to underline my deep concerns and to insist that the misappropriated funds be restored by the Ugandan authorities. The Ugandan Government have since confirmed that all Irish Aid misappropriated funds will be reimbursed, that the officials against whom financial impropriety has been established will be fully prosecuted and that measures will be undertaken to tighten the internal controls. I welcome this commitment. I have directed our ambassador to work with the Ugandan authorities to ensure the misappropriated funds are restored. The suspension of funding channelled through the Government of Uganda remains in place until this matter is resolved.

Senior officials of my Department have been in close contact with their opposite numbers in Denmark and Sweden since the publication of the Auditor General’s report. There has also been significant communication between Ireland’s ambassador in Kampala and the ambassadors of all three Nordic countries. Denmark, Sweden and Norway suspended funding through government systems.

I emphasise that Irish funding is not given to the Ugandan Government to spend as it sees fit. Rather, it is to complement programmes in key social, health and education sectors as agreed with Irish Aid. Funding social programmes through government systems is an important tool in achieving strong results and empowering national governments to deliver and take ownership of the provision of sustainable services in the long term.

Our aid programme in Uganda is regularly examined and evaluated in order to ensure we achieve effectiveness and value for money. However, it is clear that notwithstanding all the checks and balances the funding of programmes through governments in developing countries can be very challenging, as demonstrated in this case. I am committed to ensuring that we learn lessons from this case in order to strengthen our systems of risk identification, management, monitoring and audit so as to minimise potential for any misuse of funds in the future. I will continue to ensure our development funding is directed to the poorest and most vulnerable in the countries where we provide funding and that it represents the best value for money for the Irish taxpayer. We are working to have Irish funds restored as quickly as possible. We will continue to put pressure on the Ugandan authorities to ensure this happens quickly. The impact of this funding crisis has brought us to a crossroads in our long-standing historic relationship with Uganda. We must now reflect on how we move forward so as to ensure that money given by the Irish people is fully protected while still offering hope and assistance to some of the most vulnerable peoples of the world living in northern Uganda.

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