Ugandan Prime Minster Amama Mbabazi has told RTÉ that he did not receive any of the Irish Aid funding that was misappropriated by officials in his office.
Mr Mbabazi spoke for the first time about the scandal on RTÉ's This Week programme this afternoon.
He said: "I didn't even know. No money was ever paid to me and I never handled money. As Prime Minister I never handle money of Government. Never."
Mr Mbabazi said he never became suspicious of the activities of officials.
Local media say the officials perpetrated the fraud from the basement of the office building in which Mr Mbabazi is based.
The reporters claim to have seen leaked copies of the Ugandan Auditor General's Report into the matter.
Mr Mbabazi said: "My involvement as Prime Minister is obviously limited to policy. The management of public funds according to our constitution is in the hands of our public officials.
"Ordinarily I wouldn't have known. The accounting officer reports to the treasury and the auditor general reports to parliament, so most times when we hear queries, we hear them from the auditor general."
Mr Mbabazi said he was sorry about what had happened in his office and that he understood the anger of the Irish authorities.
He said he looked forward to meeting the Irish Ambassador to discuss how a recurrence might be prevented.
The prime minister said the first time he heard that Irish Aid was to be withdrawn was when journalists contacted him in Uganda and when a friend in Dublin brought newspaper reports to his attention.
He said the investigation was ongoing and that the investigation, which gave rise to the revelations of misappropriation, was instigated by his office.
Mr Mbabazi insisted that some of the money that was improperly taken out of the Crisis Management and Recovery Account was used for the development purposes, for which it was originally intended.
Speaking on the same programme, Minister for European Affairs Lucinda Creighton said the suspension of all Irish aid to the Ugandan government was the appropriate course of action until a clearer picture emerges as to the nature of the irregularities.