Malawi risks missing out on international financial aid unless its Parliament reconvenes to quickly approve a budget, the United Nations representative in Malawi warned on Monday.
The United Nations ”is increasingly alarmed by the possible consequences for millions of Malawians of failure by Parliament to pass a budget,” said UN representative Michael Keating in a statement.
The budget debate adjourned indefinitely on Friday when speaker Rodwell Munyenyembe fell ill during a heated exchange over a motion to impeach President Bingu wa Mutharika.
Parliament was set to approve the next budget by June 30, which officials said could pave the way for the resumption of financial aid by the International Monetary Fund and donor countries.
The IMF and donors suspended more than $75-million in aid in 2002 due to concerns over corruption and overspending during the rule of former president Bakili Muluzi.
”Failure to pass a budget will be damaging to the economy and could have very negative consequences, particularly for the least advantaged and most vulnerable,” the UN representative said.
The IMF board is due to meet on July 18 to discuss a possible resumption of aid for Malawi.
”Unless a budget is passed by early July, this meeting will not take place and Malawi’s request for resumption … will not be considered,” said Keating.
”This will further retard Malawi’s prospects for securing international debt relief,” he added. – Sapa-AFP