Press Release

Millennium Challenge Corporation Board Approves Funding for Initiatives to Combat Corruption in Kenya, Uganda

For Immediate Release

February 15, 2007

Washington, D.C. The Board of Directors of the Millennium Challenge Corporation (MCC) today approved Threshold Program funding for anti-corruption initiatives in Kenya and Uganda. MCCs Threshold Program is designed to assist countries that are on the threshold of Millennium Challenge Account eligibility for larger grant assistance called Compacts. Threshold Program assistance is used to help countries address the specific policy weaknesses indicated by the countrys scores on the policy measurements that are central to Compact eligibility.

Neither Kenya nor Uganda is presently eligible for Compact assistance because of their performance on the Control of Corruption indicator, one of 16 criteria used by MCC in selecting countries to participate in the Compact program. A passing score on the Control of Corruption Indicator is mandatory for Compact eligibility.

Corruption is an obstacle to equitable growth and access to opportunity, said Ambassador John Danilovich, Chief Executive Officer of the MCC. I commend Kenya and Uganda for their results-oriented program to root out corruption and improve the economic environment that leads to poverty reduction and prosperity for their people.

Kenyas two-year, $12.7 million Threshold Program will focus on reducing opportunities for corruption in public procurement, improving the procurement and delivery of health care, and supporting the monitoring and evaluation of procurement reforms.

In Uganda, the two-year, $10.4 million Threshold Program tackles corruption by improving public procurement, audit and financial management practices, strengthening the role of civil society, and building capacity to facilitate more effective follow-up of reported malpractices.

The United States Agency for International Development will oversee implementation of both Threshold programs on behalf of MCC.