10/31/2012 17:45 GMT

COPENHAGEN, Oct 31, 2012 (AFP) - Denmark said on Wednesday it has suspended all financial assistance to the government of Uganda after an audit found that ten million euros ($13.0 million) of foreign aid had been misappropriated.

"We are taking this very seriously, and have immediately suspended all payments to the government of Uganda," Minister for Development Cooperation Christian Friis Bach told AFP.

An investigation by the auditor general of Uganda found that millions of euros in aid had been funnelled into private accounts linked to the prime minister's office in Kampala.

In total around 10 million euros had gone missing, Friis Bach said.

The Peace Recovery and Development Programme for northern Uganda was established to rebuild the region after decades of conflict and devastation. It has been supported by countries including Ireland, Norway, Sweden and Denmark.

Sweden suspended its aid on October 25, while Ireland shelved the programme on October 28.

Denmark will continue to support Uganda, but via non-governmental organisations, Friis Bach said.

The country's contribution to the programme was five million kroner (670,305 euros, $179,917), out of its total 360 million kroner contribution to Uganda this year.

Ugandan Prime Minister Amama Mbabazi has denied having any knowledge of the incident.

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