"Uganda's current rating is no better than eight years ago and it remains in the category characterised as rampant corruption." International Monetary Fund (2005)
Uganda Faces Aid Cuts Over Graft
The East African (Nairobi)
by A. Mutumba-Lule
The World Bank and IMF say that corruption in Uganda is the sixth most serious constraint to business. Insufficient progress in addressing corruption in Uganda could lead to further cuts in donor support, the International Monetary Fund has warned.
The International Monetary Fund (IMF), the World Bank and Britain say insufficient progress in tackling corruption is likely to cause reduced external support for the country's Ush3,799 billion ($2.1 billion) budget, 40 per cent of which was to be funded by development partners.
IMF says that, though the 2005 survey by Transparency International showed that there was improvement in the country's score, the rating was no better than eight years ago.
"Uganda's current rating is no better than eight years ago and it remains in the category characterised as rampant corruption," says the IMF in its most recent report on Uganda, obtained by The EastAfrican last week.
Saying that corruption poses risks to the budget as procurement irregularities raise expenditure costs at both the national and local government level, the IMF - which has just completed yet another assessment of Uganda - notes that corruption in the country would impede private-sector growth and investment.
The World Bank holds the same view. The World Bank's 2003 Investment Climate Assessment reported corruption in Uganda to be the sixth most serious constraint to business.
According to the World Bank report, corruption in Uganda is "very serious" for foreign companies and exporters, which rank corruption as the second and third most serious obstacles respectively.
Auditors Deloitte and Touche say in their 2005 East Africa Budget Insight that as the 2005/06 fiscal year commences, "There is an undeniable focus on the relation between the government and the donors.
"There are expectations in some quarters that such a relationship may come under strain owing to contentious issues such as high levels of government spending and the uncertainty associated with the political anxiety over the forthcoming elections," said the firm.
And the IMF report says, "Although the TI survey of global corruption perceptions shows an improvement in Uganda's corruption score for the third successive year in 2005, this is relative to a particularly 2001 poor rating."
Large compensation payments and court awards to companies that supplied government recently charged against the national budget are suspected to have involved corruption, the IMF said. Many creditor countries and companies that had written off debts owed by Uganda were recently given court awards and their claims settled. Libya, another creditor, has been allowed to take over 49 per cent shares of the multibillion shilling National Housing and Construction Company.
Meanwhile a number of anti-corruption measures have experienced setbacks. For example, inquiries into military exploitation of the Congo and helicopter procurement abuses appear stalled.
The powers of the Inspector General of Government (IGG) to enforce the leadership code, including compulsory asset declarations by top officials, have been weakened by adverse court decisions. Funding of anti-corruption agencies by the government has also been inadequate, the IMF said.
Donors are also unhappy that the report on the inquiry into corruption in the Uganda Revenue Authority (URA) was struck down by the courts following disagreements among members of the Commission of Inquiry headed by High Court judge Julia Sebutinde.
URA, which is being supported by donors to improve revenue collections, and reduce the country's heavy dependence on foreign aid, has sacked over 230 staff after recommendations by IMF. The administration has also been streamlined, but more reforms are still needed.
Though there has been concern over corruption from donors in the past, the IMF's concern this time is worrying, especially after Britain withheld $5 million over failure by the government to meet certain set conditions.
At present, it is only high ranking government officials who have to declare their wealth. But even these declarations have not helped in curbing corruption because they are still secretive and the IGG only does random cross-checking of the declarations.
For example, asset declarations by URA staff are never cross-checked, which casts doubt on the whole process.
The IMF's position on corruption in Uganda comes at a time when the country is awaiting the outcome of a crucial assessment of its performance under the Fifth Review. The IMF is also currently preparing an ex-post-assessment of its dealings with the country.
The ex-post-assessment is the first of its kind in Uganda and it has only been carried out in three other countries. IMF resident representative Peter Allum said in an interview that the assessment has already been completed and it will be coming out in July, after a board meeting.
Uganda Faces Aid Cuts Over Graft
The East African (Nairobi)
by A. Mutumba-Lule
The World Bank and IMF say that corruption in Uganda is the sixth most serious constraint to business. Insufficient progress in addressing corruption in Uganda could lead to further cuts in donor support, the International Monetary Fund has warned.
The International Monetary Fund (IMF), the World Bank and Britain say insufficient progress in tackling corruption is likely to cause reduced external support for the country's Ush3,799 billion ($2.1 billion) budget, 40 per cent of which was to be funded by development partners.
IMF says that, though the 2005 survey by Transparency International showed that there was improvement in the country's score, the rating was no better than eight years ago.
"Uganda's current rating is no better than eight years ago and it remains in the category characterised as rampant corruption," says the IMF in its most recent report on Uganda, obtained by The EastAfrican last week.
Saying that corruption poses risks to the budget as procurement irregularities raise expenditure costs at both the national and local government level, the IMF - which has just completed yet another assessment of Uganda - notes that corruption in the country would impede private-sector growth and investment.
The World Bank holds the same view. The World Bank's 2003 Investment Climate Assessment reported corruption in Uganda to be the sixth most serious constraint to business.
According to the World Bank report, corruption in Uganda is "very serious" for foreign companies and exporters, which rank corruption as the second and third most serious obstacles respectively.
Auditors Deloitte and Touche say in their 2005 East Africa Budget Insight that as the 2005/06 fiscal year commences, "There is an undeniable focus on the relation between the government and the donors.
"There are expectations in some quarters that such a relationship may come under strain owing to contentious issues such as high levels of government spending and the uncertainty associated with the political anxiety over the forthcoming elections," said the firm.
And the IMF report says, "Although the TI survey of global corruption perceptions shows an improvement in Uganda's corruption score for the third successive year in 2005, this is relative to a particularly 2001 poor rating."
Large compensation payments and court awards to companies that supplied government recently charged against the national budget are suspected to have involved corruption, the IMF said. Many creditor countries and companies that had written off debts owed by Uganda were recently given court awards and their claims settled. Libya, another creditor, has been allowed to take over 49 per cent shares of the multibillion shilling National Housing and Construction Company.
Meanwhile a number of anti-corruption measures have experienced setbacks. For example, inquiries into military exploitation of the Congo and helicopter procurement abuses appear stalled.
The powers of the Inspector General of Government (IGG) to enforce the leadership code, including compulsory asset declarations by top officials, have been weakened by adverse court decisions. Funding of anti-corruption agencies by the government has also been inadequate, the IMF said.
Donors are also unhappy that the report on the inquiry into corruption in the Uganda Revenue Authority (URA) was struck down by the courts following disagreements among members of the Commission of Inquiry headed by High Court judge Julia Sebutinde.
URA, which is being supported by donors to improve revenue collections, and reduce the country's heavy dependence on foreign aid, has sacked over 230 staff after recommendations by IMF. The administration has also been streamlined, but more reforms are still needed.
Though there has been concern over corruption from donors in the past, the IMF's concern this time is worrying, especially after Britain withheld $5 million over failure by the government to meet certain set conditions.
At present, it is only high ranking government officials who have to declare their wealth. But even these declarations have not helped in curbing corruption because they are still secretive and the IGG only does random cross-checking of the declarations.
For example, asset declarations by URA staff are never cross-checked, which casts doubt on the whole process.
The IMF's position on corruption in Uganda comes at a time when the country is awaiting the outcome of a crucial assessment of its performance under the Fifth Review. The IMF is also currently preparing an ex-post-assessment of its dealings with the country.
The ex-post-assessment is the first of its kind in Uganda and it has only been carried out in three other countries. IMF resident representative Peter Allum said in an interview that the assessment has already been completed and it will be coming out in July, after a board meeting.
1 comment:
President Museveni of Uganda was the featured guest on BBC's Talking Point programme yesterday, July 3rd. Sorry to get the information to you so late but it may be possible to get a copy of the transcript on the BBC News online site. I would have forfeited some of the other great TV features on Africa yesterday just to hear you tear him apart.
It was a big weekend for Africa, wasn't it? Maybe the biggest weekend in Africa's modern history. Now the real work starts.
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