September 22, 2016

My Policies Forced World Bank To Cancel Loans To Uganda – Muhakanizi

My Policies Forced World Bank To Cancel Loans To Uganda – Muhakanizi


Uganda’s Secretary to the Treasury, Keith Muhakanizi, has said the decision by World Bank to freeze further lending to Uganda is a direct response to the tough austerity measures he has instituted in the management of government finances.

The World Bank announced early this month that it had decided to suspend lending more money to Uganda over an outstanding debt.

“The World Bank Group took a decision to withhold lending to Uganda effective August 22, 2016 while reviewing the country’s portfolio in consultation with the Government of Uganda,” the bank said in a statement.

However, Muhakanizi told local media that for a longtime accounting officers and managers of many World Bank and other donor-funded projects took them as cash-cows leading to poor management of public investments.

“I’m happy that given the efforts we have done, the World Bank, and, not like in the past, [their] budget cutting [wasn’t] because of corruption and misuse of government resources. Another ‘animal’ that we need to deal with here, is maybe social protection issues and whatever,” Muhakanizi said.

He added that ever since he took the reins at Ministry of Finance, he has been championing tough austerity measures in order to streamline government spending and management of programs and projects.

The World Bank said it will continue to “actively work with the Ugandan authorities to address the outstanding performance issues in the portfolio, including delays in project effectiveness, weaknesses in safeguards monitoring and enforcement, and low disbursement.”

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