The Malawi government has yet to repay seven-million dollars to the European Union after the funds, intended for the health budget, went missing last August, a news report said on Wednesday.
The government failed to account for the money, part of a $52-million EU aid package under a three-year accord.
The EU accuses Malawi of diverting the funds from their intended use in the health ministry budget. Wiepke van der Goot, head of the EU delegation in Malawi, told the Nation newspaper that the EU would not release $15-million remaining in the aid package until the issue is resolved.
”That will be sad because Malawi needs the money now, especially with the hunger situation,” Van der Goot said.
The impoverished southern African is currently facing its worst food crisis, and needs 600 000 tons of maize, the staple food here, to stave off famine threatening up to 3,2-million people of a total population of 11-million.
Van der Goot said an International Monetary Fund (IMF) mission that was in Malawi this month had advised the government to borrow money from the central bank to repay the seven million dollars. – Sapa-AFP