The Government is considering a €2 million cut in Ireland's annual direct aid to the Uganda government, from €32 million to €30 million, to demonstrate the need for political reform in that country, according to Minister for Foreign Affairs Dermot Ahern.
"I am very concerned with the ongoing situation in Uganda and I believe that by reducing our direct funding to the administration, in partnership with other countries, it will send a very clear message about political reform," the Minister told The Irish Times.
Responding to the news, Ugandan president Yoweri Museveni said his country could do without foreign aid if the Uganda Revenue Authority improved its methods of collection. Donor countries provide more than 50 per cent of Uganda's budget.
The proposed cut was welcomed by chief executive of the development agency Goal John O'Shea, a long-time and vociferous critic of the Uganda government. "I'm absolutely delighted," he told The Irish Times. But he added: "Why haven't we got the courage to end all bilateral aid to Uganda?"
Mr O'Shea said all direct government-to-government aid should be cut off because corruption was "rampant", Uganda's government was involved in "the rape and plunder of the Congo where five million people have died", and President Museveni had been saying for some time that he was only interested in trade, not aid.
Responding to the point that the Ugandan government had greatly reduced the incidence of HIV/Aids among its population and significantly increased the level of basic educational provision, he rejected these statistics as "an out-and-out fabrication", adding that the real figures were substantially lower.
It is understood from sources in the Department of Foreign Affairs that an alternative channel is being sought, preferably in the Uganda voluntary sector, for the funding that is likely to be withheld from the Museveni administration. A further cut in aid is expected if the Uganda government fails to respond in the appropriate manner.
Donor countries are alarmed at the nature of the process currently under way to change the constitution so that President Museveni can serve a third six-year term.
While accepting that constitutional change is a matter for the Ugandans themselves, donor countries are pressing for the process to be transparent, fair and devoid of coercion.