Uganda's LRA again rejects talks, say graft afoot

NAIROBI, Jan 19 (Reuters) Uganda's Lord's Resistance Army (LRA) rebels formally refused to return to peace talks in south Sudan today and accused Sudanese officials of embezzling money given to fund the talks.

''Peace talks in Sudan are closed forever,'' LRA spokesman Obonyo Olweny told reporters in the Kenyan capital, saying the rebel movement had sent a letter to mediator Sudan to that effect today.

The northern Ugandan rebel movement, fighting for two decades with no clear aim, had already said it would not return to talks in south Sudan's capital Juba after Sudan's president vowed ''to get rid of the LRA from Sudan''.

''The LRA will only resume negotiations in a new venue outside south Sudan, preferably Kenya or South Africa.'' The rebels, among Africa's most feared and persistent insurgents, say they are worried for the security of their fighters, who are meant to gather in two camps in south Sudan as part of a landmark truce signed in August.

The stop-start peace talks are seen as the best hope of ending a 20-year insurgency that has killed tens of thousands of people and forced 1.7 million more into refugee camps.

The LRA also said south Sudanese officials had embezzled funds from the peace talks, and that only half of the 5 million dollars raised for the purpose had been spent.

''We wonder whether this practise of embezzling donor funds meant for the peace process is condoned by the UN authorities,'' Olweny said. Pressed for details, he declined to give any and said investigators would have to be told first.

The government of south Sudan had no immediate comment.

LRA deputy leader Vincent Otti has called the new UN envoy for Uganda's war, former Mozambican president Joachim Chissano, to explain why the rebels will not return to Juba, Olweny said.

LRA head Joseph Kony, Otti and two other leaders wanted by the International Criminal Court for war crimes have long feared the talks were a means to have them arrested and sent to the tribunal in The Hague.

Aid agencies Save the Children-Uganda and Oxfam urged both parties today to talk again to help keep up humanitarian gains made since the August truce, including the return of some 230,000 refugees to their homes.

Northern Ugandans ''tune on to their radios and listen with fear to what may become of the negotiations in Juba and the future of their children. This is cause for grave concern and it grows day by day'', Save the Children-Uganda said.

The LRA appeared to back off its threat to return to Uganda, which the Ugandan army has said would be seen as an act of war.

''Our soldiers who were in south Sudan have not crossed over into Uganda,'' Olweny said. ''It is a possibility that ultimately they will cross over because it is their motherland.'' Reuters LL RS2135