Ireland has cut €10 million annual funding to the Ugandan government because of concerns over potential corruption and the African state's involvement in the civil war in the Democratic Republic of Congo,writes Paul Cullen, Development Correspondent.
The Minister of State for Overseas Co-operation, Mr Tom Kitt, took the decision to end direct funding to the Ugandan government after a fact-finding visit to the country last month, The Irish Times has learned.
Although Mr Kitt and his officials believe Irish aid money is being well spent in Uganda, the Minister said he had taken the decision "in the light of the overall debate on potential corruption".
The money will now be redirected to regional and sectoral projects not controlled by central government, and to a dedicated fund to tackle poverty in the east African state.
The spending of Irish taxpayers' money in Uganda, and particularly on government projects, has been the subject of sustained criticism from some quarters, particularly by Mr John O'Shea, the chief executive of the aid agency GOAL.
Mr O'Shea welcomed the Minister's decision, but he questioned why the Government continues to provide any support to Uganda.
"I welcome the decision to withdraw aid from a Ugandan regime which has been involved in such appalling atrocities in the Congo.
"Perhaps now the Government is waking up to the fact that it is routing aid money through one of the principal aggressors in a war that has led to up to five million deaths.
"However, I cannot understand why the Government feels it needs to withdraw one form of aid to the Ugandan government and not another. Surely if the situation is serious enough to withdraw budgetary support, then it's serious enough to withdraw all other forms of aid as well."
However, Mr Kitt said he stood over "every penny" of Irish money spent in Uganda, but had decided to "strengthen existing safeguards" on spending.
"I'm satisfied that the money is being used in the right way, but I also recognise the need to be accountable to the taxpayer. This decision goes some way towards meeting concerns that have been expressed."
Mr Kitt, who is attending a conference in Indonesia, likened the "amendment" in spending to "giving the money directly to Micheál Martin and Noel Dempsey instead of handing it to Charlie McCreevy".
More money would be spent on local administrations, on specific areas such as health and education and on prevention of HIV/AIDS.
Development Co-operation Ireland (the new name for Ireland Aid) also plans new measures designed to ensure transparency and accountability. Allocations from DCI to a particular area would be posted in a public place, for example, to ensure locals were aware of the funds being spent there.