The World Bank is reviewing its development assistance to Uganda over increased allegations of misuse of public funds by government officials, a statement from the Bank's office here said on Wednesday.

The Bank urged the government to take up remedial measures.

"The World Bank Group condemns all acts of corruption for depriving countries of the means to achieve better development outcomes. The recent allegations indicate that the overall fiduciary environment in Uganda needs to be strengthened to ensure better management of public resources," the statement said.

The Bank said it will continue to work with the Ugandan government and other development partners to help the country deliver on its national policy of "zero" tolerance for corruption.

It also said it will strengthen its own measures to ensure that its funds are used for their intended purposes.

The Bank joins other western donors who have threatened to withhold billions of shillings in foreign aid to Uganda over the massive funds theft scandal that has rocked the Office of the Prime Minister.

The funds were meant for post war recovery in northern Uganda and semi arid northeastern Uganda.

Prime Minister Amama Mbabazi recently said that government had decided to pay back the stolen funds to the Peace, Recovery and Development Project donor account as investigations into the scam continue.

A special audit by the country's Auditor General found evidence detailing how aid from Ireland, Norway, Sweden and Denmark was transferred to unauthorized accounts in a sophisticated scam which resulted in the theft of at least 50 billion shillings (20 million U.S. dollars). Endi

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