Uganda's summit spending plan angers MPs

KAMPALA, Aug 18 (Reuters) Ugandan members of parliament rejected a government proposal to cut some ministries' budgets to raise nearly 100 million dollars needed to host a Commonwealth summit in November.

The lawmakers will meet on Monday to discuss the emergency spending plan to free up funds for urgent road repairs, venue preparation and security for Britain's Queen Elizabeth and more than 50 other world leaders expected to attend.

Finance minister Ezra Suruma said key areas such as defence and the government's anti-poverty programmes would not be affected.

But some MPs grumbled that plans were not made earlier and said spending such huge sums on the Commonwealth Heads of Government Meeting (CHOGM) could threaten Uganda's broader aims.

''It means the desired objectives of the budget, the prosperity for all, will not be achieved,'' David Mafabi, the chair of parliament's public accounts committee, told the independent Daily Monitor newspaper.

''We knew about CHOGM four years ago. There is no reason for this fire brigade approach,'' he added.

Another MP, who asked not to be named, told the paper: ''Ministries are already grappling with budget cuts and then somebody proposes further cuts? This is ridiculous.'' Last month, Uganda's government said direct foreign and local investment nearly tripled to 2.18 billion dollars in the 2006/07 fiscal year, partly due to a boom in the hospitality sector ahead of the November 23-25 summit.

Across the capital Kampala and on the nearby shores of Lake Victoria, workers are racing to finish several new hotels to meet demand for 3,000 extra beds needed for the 2-day event.

REUTERS SKB RK1612