... and the British empire still nurtures them.
The money is supposed to fund a project by the Loyalist thugs to improve deprived communities, mostly in Belfast. In return, the government expects from the UDA to cease all illegal activities. According to the UPRC, the UDA is genuinely interested in becoming a non violent community association.
Now, as El Blogador comments, there is nothing wrong about investing in deprived communities in order to raise their quality of life. There is however something outrageous about the government giving handouts to an organization that is actively involved in the drug trade that plagues the communities of Northern Ireland (and Western Scotland), a group with known neo-Nazi associations which has been involved in the murders of more than 100 republicans and catholics. They are the problem and the New Labour lackeys are paying them to go away.
Of course, this should not come as a surprise to anyone. Their co-operation with the British State is not really a secret. Similarly, if the US government announces tomorrow that it will give some millions of dollars to the KKK to fund community projects in the South, we won't be exactly shocked.