EU donors freeze aid to Uganda over corruption

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Associated Press

Posted on December 5, 2012 at 8:01 AM

Updated Wednesday, Dec 5 at 8:04 AM

KAMPALA, Uganda (AP) — The European Union said it is cancelling aid to Uganda for six months over corruption allegations.

The EU late Tuesday announced its freeze on aid to President Yoweri Museveni's government as a result of corruption, including a recent scam in which up to $13 million in donor aid from five European countries was embezzled in the Ugandan prime minister's office.

Uganda has a reputation for corruption, but the latest scandal has remarkable details: More than $220,000 was spent on gas in four days, millions of dollars were diverted to buy luxury vehicles for top officials and millions were deposited into private accounts.

The money had been given by Britain, Norway, Sweden, Denmark and Ireland for the rehabilitation of parts of northern Uganda devastated by war.

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