Kalangala- Donors have cut financial support to the tune of Shs800 million to Kalangala District for the financial year 2014/2015, a move that is expected to affect the district’s implementation of its budget.
According to the secretary for finance, Mr Julius Mukasa Opondo, Iceland International Development Agency (ICEIDA), which supports Kalangala District Development Programme, will now provide only Shs2.4 billion instead of the annual Shs3.2 billion.
He made the remarks during the 2014/2015 budget proposal reading last Friday at the district council hall.
While no clear reason has been given by the donor body for cutting the funding, Mr Jim Gyagenda, a member of the district finance committee, attributed it to the reported cases of embezzlement of funds by district staff.
Recently, two senior district employees accused of embezzling Shs80 million were forced to refund the money but they were not sacked.
Mr Opondo said the district expects to use a budget of Shs14.5 billion of which only Shs228 million shillings will come from local revenue collection. Mr Opondo also said the district revenue collection sources had declined due to reduced fish production.