Wednesday 31 October 2012

The Ugandan Affair: What it means for Irish Aid

Last week, Tanaiste Eamon Gilmore (the Irish Deputy Prime Minister) suspended all Irish aid channelled through  the Ugandan government and announced an immediate investigation into allegations of fraud. The unprecedented move was prompted by a draft report of a special investigation by the Auditor General of Uganda into the handling of aid funds by the Office of the Prime Minister (OPM).

The Auditor General found that significant amounts of donor funding from Ireland, Norway, Sweden and Denmark, earmarked for the Peace and Recovery and Development Programme in Northern Uganda had been transferred to an unauthorised account of the OPM. Up to 4 Million Euro of Irish Aid funding was misappropriated.

The reaction from the Irish Department of Foreign Affairs (DFA) appeared to be swift and decisive. The Tanaiste Eamon Gilmore released a statement in which he described being "deeply concerned by what I have learned today of the findings of the investigation by the Auditor General of Uganda into the management of aid funds by the Office of the Prime Minister of Uganda." The statement concluded "The Government will not provide financial support under our development cooperation programme unless it is clear that Irish money is being spent for the purpose for which it was allocated. Pending the satisfactory resolution of this matter, I have instructed that no further aid funding should be provided through Ugandan government systems.”

The amount of Irish Aid due to be allocated through official channels this year totalled 17 million euro.

Three DFA officials were swiftly dispatched to Kampala to investigate the affair and the Irish media had a field day with the story. Responses were varied; some gave credit to the Ugandan officials who initially  highlighted the fraud; some called for Irish Aid to channel more of its aid through NGOs and charities as opposed to governments; many commenter's on social media called for the permanent suspension of Irish Aid.


To give or not to give?

The whole debacle has highlighted increasing tensions in Eurozone countries surrounding the issue of foreign aid. Ireland has a long, generally proud history of foreign aid. As I talk about in this post, given that we are a small, neutral country with a recent history of conflict ourselves, Irish Aid is generally respected as being non-partisan, not tied to conditions and genuinely concerned with conflict resolution and peacemaking around the world.

Irish people, in turn, have traditionally valued our foreign aid programme and taken a proud view of our commitment to the developing world. There's a lot of reasons behind this but basically: it wasn't too long ago that we were awful poor ourselves and the Irish education system beats you over the head with talk of the Famine from Primary level. So, we appreciate the importance of both charity and long term aid (We are sorry about inflicting Bono and Bob Geldof on the rest of the world though).

Now however, we're poor again- or we think we are anyway. The boom years of the Celtic Tiger are gone. Times are tough, taxes are increasing, benefits are being cut, unemployment is rising, emigration levels are soaring. This story broke as Ireland approaches what is expected to be the harshest national budget in decades. It isn't hard to see why it prompted some people to question the amount of money donated through Irish Aid.

The misappropriated funds in Uganda have increased the calls for a dramatic rethink of the amount of foreign aid, or at the very least the method in which, Ireland donates. This is not a bad thing. We all know that there are many issues with international aid, how it's used, etc. However, we also know it's very easy to point out the problems but much harder to come up with feasible, sensible solutions.

So do we need to justify giving aid in the first place? I often skip these endless discussions of the motivation behind aid, not because I think it's unimportant (far from it) but it's exhausting. Usually, I take foreign aid as a given and focus on ways of improving it but how can we assist development in countries such as Uganda which have corrupt political regimes?

Having spent some time in Uganda last year, I can see how desperately the country needs development. I also think it has one of the most ruthlessly corrupt political system I have ever seen- and coming from an Irish person, that's really saying something. So we come to the difficult questions; Do we refuse to hep the Ugandan people because of political corruption? Why don't we work through the third sector? But will the Ugandan government allow aid to be channelled through others? Is it permissible to turn a blind eye to small levels of corruption in order to get aid to people who really need it?


That's what she said. . .

Once Ireland suspended aid and the Scandinavian countries quickly followed suit. Although hardly an unjustified reaction, are these governments just trying to appear to act decisively on this issue? After all, if they had proper Monitoring and Evaluation procedures in place to start with, would such an instance of fraud have been allowed to occur?

Reports emerged yesterday that the UK had suspended aid chanelled through the OPM (although this decision will not affect the regular budgetry aid it provides to Uganda) back in August when allegations of fraud first emerged and had since launched an independent inquiry. This was even though no British money was taken.

The rapid reaction of the UK to such reports, even though it was not their money alleged to be misappropriated, reflects poorly on the Irish government's slow reaction.

A friend of mine pointed out that the Uganda fraud case appears to be similar to the recent incident in which European donors suspended aid to Rwanda over its connections to militias in neighbouring DRC. European governments were not so outraged by this fact that they cancelled aid. Rwanda's involvement in the DRC had long been an open secret. But with a leaked UN report explicitly spelling it out, many governments felt something must be seen to be done.

Is this the reasoning behind the deployment of the DFA officials to Kampala? A member of the political opposition  I spoke to questioned the decision to send three Irish officials to Kampala. Surely the very capable staff at Ireland's embassy in Kampala are better placed to investigate such an issue. How can the DFA justify the expense of sending three officials, considering the slight returns any such trip is likely to incur? Is it all merely for show?

There are also some nuances to the story which have been under reported in the Irish media . Firstly, the story first began to break in Uganda back in July, when an accountant attached to the OPM went missing. Secondly, it was Ugandan officials and media who forced the story out into the open. The Irish media only picked up on the story last week once aid to Uganda was suspended (although the Irish Times did give credit to the Ugandan whistle blowers). This is not insignificant as it raises serious questions about the M&E procedures employed by Irish Aid. Again, are the DFA now acting to cover up their own failures perhaps?

In the end, even if Irish Aid and the DFA are somewhat at fault, the fraud was committed by the Ugandan OPM and it is the people of Northern Uganda who will suffer, as well as other Ugandan citizens who are tired of the endemic corruption in their country. But there are questions on the Irish side which need to be answered.

So I'll just owe you one Ireland?

This incident however could prove to be a game changer. I don't think Irish Aid will be scraped. But I do think this incident will leave a terrible legacy. It's proving to be a massive headache for the Irish government. It's difficult to justify international aid when you are cutting vital services in your own country such as rural garda stations, special needs assistants in primary schools, hospital beds and home help for carers. It is especially difficult to make such justifications when the foreign aid is found to be misappropriated. This incident has unfortunately increased the likelihood of Irish Aid being cut in the upcoming budget. The Dail's taxpayer watchdog is due to launch a special investigation into the spending of the country's third world aid budget.

The Irish government is demanding repayment of the 4 million euro from its Ugandan counterparts. News reports that the Ugandan government is "considering" such a repayment prompted much amusement from online commentators with a basic sentiment of "yeah, good luck with that one,".

And so we wait the budget in December, to see the real impact this affair will have on Irish Aid.


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