Uganda wants World Bank to reconsider withholding $1.5B

By Halima Athumani

KAMPALA, Uganda (AA) - Uganda’s President Yoweri Museveni has written to the World Bank asking the Bank to reconsider its decision to withhold funding to the East African country.

Confirming the letter to Anadolu Agency Friday, Muhakanizi Keith, the permanent secretary of Finance Ministry said: “Yes, the letter has been sent to the World Bank and we will go and discuss the possible lifting of the suspension.”

Museveni’s letter promises to address structural gaps among other loopholes that saw the bank announce withholding of more than $1.5 billion in new lending to Uganda until further notice.

In a statement on September 13, the World Bank said it had taken a decision "to withhold new lending to Uganda effective August 22, 2016 while reviewing the country’s portfolio in consultation with the government."

The World Bank pointed out issues that needed to be addressed including delays in project effectiveness, weaknesses in safeguards monitoring and enforcement and low disbursement.

In its assessment report of the period between 2007 and June 2016 of Uganda’s external financing, the Bank noted the country performed dismally with 72 percent of projects funded by donors being unsatisfactory. Only 15 percent of projects were considered satisfactory.

The Ugandan delegation led by Finance Minister Matia Kasaija is set to travel to Washington D.C. in October to plead with the International Development Association, known as the World Bank's “Fund for the Poorest”.