Blantyre | Tuesday
THE International Monetary Fund has released only $8-million of $55-million earmarked for Malawi because of the government’s failure to account for where the money would be going, a local representative of the organisation said on Monday.
The aid money was intended for use over three years beginning in 2000 as part of a plan to reduce poverty and increase growth in the poor southern African country.
But, in a written statement, the IMF’s representative to Malawi, Girma Begashaw, said the money had been withheld because the government had not complied with agreed upon conditions to receive the money to assure accountability.
“Now the government will need to bring the program back on track by implementing the agreed macroeconomic and structural reform measures so that disbursements can resume,” said Begashaw.
Malawi is facing a cash crunch and soaring inflation following recent announcements by several Western donors – who fund much of Malawi’s budget – that they were suspending aid because of government corruption and overspending.
Finance minister Friday Jumbe has said he is devising strict budgetary controls to win back donor confidence. – AFP