President Museveni has finally accepted to lift the suspension on the activities of Democratic Governance Facility (DGF) in Uganda lifted, the Nile Post has learnt.
In January 2021, Museveni directed the suspension of the activities of DGF, the largest pool of donor funding to non-governmental organisations in Uganda which is financed by Denmark, Ireland, Austria, UK, Sweden, Norway, and the European Union to facilitate equitable growth, poverty eradication, rule of law and long-term stability in the country.
However, following back and forth meetings between government and development partners, government accepted to have the suspension lifted.
Sources within DGF confirmed the development to the Nile Post.
“We met with the president today, presented our case and he has directed for lifting of the suspension. It is a very good day for us and for DGF. We are back,” the source told this website.
Museveni has since confirmed the development.
"Today, I hosted the Danish Minister for Development Cooperation. We discussed a number of bilateral issues. I also agreed to lift the ban on Democratic Governance Facility (DGF), to run till December 2022, with Government represented in the decision-making structures," Museveni said in a tweet.
Government suspended the activities of DGF over what was termed as financing of subversive activities.
In a letter to the Finance Minister, Matia Kasaija, President Museveni asked him to explain how his ministry authorized a £100 million (shs500.8 billion) fund to operate illegally in the country without the involvement of cabinet.
“It has come to my attention that the Ministry of Finance under the hand of the Permanent Secretary, irregularly and unilaterally authorized a £100 million fund, known as the Democratic Governance Facility, to be operated exclusively by a foreign mission in Uganda. Unlike prior grant arrangements like the Democratic Governance and accountability project in which there was transparency and representations the Government of Uganda has no say or oversight on how the Democratic Governance Facility is administered in Uganda,” Museveni said in the January, 2, 2021 letter.
The visibly angry Museveni said in the letter that he had learnt that a big percentage of the shs500.8 billion went into financing activities and organizations meant to subvert government “in the name of the improving governance.”
Some government officials accused DGF of being used by the West to fund activities of National Unity Platform president Robert Kyagulanyi ,ahead of the 2021 general election.
The suspension saw activities of over 100 Non-Governmental Organizations affected but also many of their projects came to a halt.
The news of the lifting of the suspension will be a great sigh of relief to the NGOs but also many people who were benefitting from projects funded by DGF.