President Yoweri Kaguta Museveni Tibuhaburwa on Wednesday lifted the sanctions he had slapped against the Democratic Governance Facility (DGF), a multimillion-dollar fund backed by European nations after almost two years since its operations were banned.

SEE ALSO: Museveni orders revival of DGF as country drifts to economic crisis

Following the controversial 2021 general elections, President Museveni suspended DGF operations suspecting the entity to be behind the candidature of pop star turned politician Kyagulanyi Ssentamu Robert aka Bobi Wine, a move which has since crippled the operations of more than 74 donor civil society organisations and affected some government projects which benefited from the fund.

In January 2021, Museveni directed the immediate 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.

“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 after engaging the donors.

In 2021, President Museveni asked Finance Minister Matia Kasaija 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.

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