Corruption scandal sparks rage, donors freeze aid

KAMPALA (AP):

An audacious scam in which up to US$13 million in donor money was embezzled in the office of Uganda's prime minister has brought several European donors to freeze aid to Uganda, the kind of action long demanded by transparency campaigners who charge that the money encourages a corrupt system.

In its new corruption survey, published yesterday, Transparency International ranks Uganda at 130 out of 176 countries.

Even in a country where many have come to take official corruption for granted, the latest scandal, brought to light by the country's auditor general in October, is remarkable for its details: more than US$220,000 spent on gas in four days, millions of dollars diverted to buy luxury vehicles for top officials, millions deposited into individuals' private accounts.

Because the money had been allocated for the rehabilitation of parts of northern Uganda devastated by decades of warlord Joseph Kony's brutal insurgency, the scandal has provoked a lasting rage around this country and brought foreign donors to inflict aid cuts on this east African country.