The President Yoweri Kaguta Museveni has finally succumbed to Pressure from European Union, America and accepted to lift the ban that he had imposed on Democratic Governance Facility (DGF).
President Museveni imposed the ban on DGF after he was briefed that they were injecting a lot of billions of shillings to NGOS and some of them were supporting opposition groups in Uganda. President also ordered security to investigate some top financial officials who were suspected to be behind the deal.
However, insiders in State House revealed to us after President imposed the ban on DFG a lot of pressure came from European Union, America and other top donors and threatened to withdraw their donation to Uganda and even to remove their embassies from Uganda.
Insiders from State House added that during the time of ban, President Museveni held several meetings with top Government officials, Security Chiefs and other top delegates to discuss the way forward.
“During one of the hot meetings at State House, President Museveni was advised to lift the ban on DGF to cool standing pressure from America and EU which he also accepted,” says a state house source.
Sources say President Museveni later invited a delegation from EU for a meeting at State House where he revealed he would lift the ban on DGF.
Source say President Museveni during the meeting assured the EU delegation for the formation of a committee to expedite talks with donors of the Democratic Governance Facility (DGF) to resolve the fallout with the government.
The President says the team, which will be headed by Prime Minister Ruhakana Rugunda, and will the task in only two weeks.
It comprises of Uganda government officials and representatives of countries contributing to the DGF funding basket.
A highly placed state house source say that President Museveni, in the meeting with the envoys, blamed Ministry of Finance officials for signing a working agreement with DGF, allowing the latter to operate in Uganda, without involving Cabinet and seeking approval from the Attorney General, the chief government legal advisor.
“The committee members are slated on Tuesday to examine matters of concern so that the operation of the facility resumes. The discussions will ensure that going forward, the fund is transparent and should involve government in its operations,” the source said.
However, Spyreports could not get a comment from PM Rugunda as he could not pick our calls.
But reached the spokesperson at the Office of the Prime Minister (OPM), Julius Mucunguzi, confirmed the committee was formed following President Museveni meeting with EU officials.
He said the committee, which has already started it work, would discuss the nature, scope, and operation of DGF but declined to disclose the specific issues, saying he would preempt the discussions.
“The Prime Minister has had initial discussions with members of the team to look at the fund in a holistic manner,” Says Mucunguzi.
“Since the matters are still being discussed and not concluded, I am not in position to speak about the details. They are slated to complete the task within the time framework they were given,” he added.