Dáil debates

Wednesday, 14 November 2012

Ceisteanna - Questions - Priority Questions

Overseas Development Aid

4:50 pm

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade if, in view of the approach Norway, Sweden and Denmark took to the misappropriation of bi-lateral aid in Uganda; if he discussed Ireland’s decision to suspend aid to Uganda pending an investigation with these States. [50108/12]

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade the steps he has taken to date in response to the revelation about the misappropriation of Irish Overseas Development Aid to Uganda; and if he will make a statement on the matter. [50167/12]

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade in view of the role of the Ugandan Auditor-General’s office in uncovering the misappropriation of Irish Aid funding, his plan to increase public awareness of Irish Aid’s policies on aid accountability and transparency. [50103/12]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade his future plans for aid to Uganda; and if he will make a statement on the matter. [50170/12]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade when the Ugandan Government will re-pay the €4 million owed to Irish Aid which had been transferred to unauthorised accounts; the way he is reviewing the current mechanisms in place to allocated Irish Aid moneys; and if he will make a statement on the matter. [49972/12]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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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.

5:00 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)
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The Minister's answer was very comprehensive. We discussed this matter earlier. I was interested in hearing about the connection we have with various countries on this matter. It appeared at the time in question Ireland was acting unilaterally. The Minister stated there was constant toing and froing by officials. They did seem to adopt a different approach. It has certainly worked in respect of Ireland and we have got the response we wanted.

Yesterday, the anti-homosexuality Bill currently before the Ugandan Parliament was referred to. This is linked to the issue of funding. In this regard, the Minister's comments at the meeting yesterday are pertinent. We are all anxious to promote human rights and are concerned about the impact of the anti-homosexuality legislation in Uganda, where it is threatened that homosexuals will be jailed for life. Are we going to link the possible resumption of funding with developments regarding the legislation?

Many of the officials from Irish Aid believed just one person seemed to be pushing the legislation. The Minister stated yesterday he raised the matter very strongly and that he was in Uganda last year. Will he raise concerns about the Bill again? Does the Irish Government have any plans to open discussions, to hold workshops or to have interaction with communities on gay rights and LGBT issues in Uganda? Does the Minister envisage a role for Irish Aid in discussions in this regard? If the legislation is passed in Uganda, what action will the Irish Government take? The proposed legislation is a worrying development and a negative step. What it represents is certainly a million miles from where we are coming as a society. What is going to happen is unacceptable and will have implications for our involvement in Uganda.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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As I stated in reply to this and previous questions, all aid from Ireland distributed through the Ugandan Government has now been suspended, and will remain so. We are at a crossroads in our relationship with the Ugandan Government. I am pleased the auditor general identified the misappropriation of funds and that we have a commitment from the Ugandan authorities to repay in full the money that was misappropriated. I will have to reflect on the future direction of our aid programme in so far as moneys are channelled through the Ugandan Government. Before doing so, I will examine the audit and evaluation report that has been prepared.

Even if we had never had a problem with the aid programme, we would raise the issue of the legislation on gay people that is before the Ugandan Parliament. I was in Uganda during the summer and took the opportunity to raise the issue at the highest level, namely, with the President of Uganda. I expressed my concern over the legislation that was being passed. At that point, it was not clear whether the legislation would be passed or who would support it. I believe the legislation began as Private Members' legislation. As one will appreciate, a Government is not always responsible for Private Members' legislation. We raised the matter with the Ugandans and we have been keeping an eye on it. Irrespective of the direction we take with our aid programme in Uganda, we will continue to raise the human rights dimension with the Ugandan authorities.