Donors withdraw funding to NGO over corruption

Offices of International Alert in Ntinda, Kampala. PHOTO BY STEPHEN OTAGE

Kampala- The Swedish Embassy in Kampala has confirmed withdrawing funding to International Alert, an international non-governmental organisation with operations in Uganda, over financial mismanagement.

In a telephone interview, Mr Johan Bergtgveist, the deputy head of cooperation at the embassy, said the Swedish International Development Agency, the Democratic Governance Facility, Irish Aid and United Kingdom’s Department for International Development stopped funding International Alert in October following a forensic audit which unearthed massive financial mismanagement.

“We conducted a forensic audit, which revealed a number of issues with financial mismanagement, leading to the conclusion that our funds were not being used in a responsible way and we decided to phase out and close the programme,” he said.

Mr Bergtgveist did not disclose the amount of money they had lost but said the NGO’s London headquarters was ordered to refund Shs43.5 million, which was spent in a manner not compliant with their guidelines.

International Alert, which has been in Uganda since 1987, operates in communities affected by conflicts and focuses on peace building activities.

According to sources, the NGO won the trust of donors after ensuring accountability and value for money in the management of the Northern Uganda Peace Recovery and Development Programme and the Northern Uganda Social Action Fund where billions of donor funds were later found to have been squandered.

The source added that part of the fund misuse was reflected in the NGO’s decision to sometimes sponsor staff weddings and burials of staff and their relatives, and that whoever attended such events was paid per diem and transport refund, which was reportedly accounted for as stakeholder engagement.

When contacted shortly before the festive season, Ms Ilaria Bianchi, the head of communications in London, confirmed the forensic audit but denied claims of fund misuse.

Mr Richard Busingye, the country manager who is reportedly leaving office, also denied the accusations, referring this newspaper to the London headquarters.

However, this newspaper obtained a December 15 e-mail communication from Ms Harriet Lamb, the International Alert chief executive officer, to the Kampala office, confirming the withdrawal of donors, and also acknowledging the closure of the Kampala office, saying it was a major lesson for the organisation, which is exiting Uganda in March.