Norway suspends budget aid to Malawi
Norway on Friday joined the European Union (EU) in suspending budgetary support to Malawi because of the plunder of government funds that has left the aid-dependent country reeling.
Donors provide about 40 percent of the country’s overall budget and 80 percent of its development kitty.
The aid suspension jeopardises about K6.5 billion in budget support the Nordic country is yet to release after disbursing K13.5 billion so far.
Norway’s decision puts a huge strain on a budget that is already under pressure to provide critical social services to Malawians.
“The Norwegian Ministry of Foreign Affairs decided on 10 October to freeze all further budget support to Malawi until there is independent confirmation that weaknesses in Malawi’s financial management system have been rectified.
“There are clear signs that substantial funds have been embezzled from the Malawian Ministry of Finance.
“We have a policy of zero-tolerance for corruption, and cannot disburse any more budget support to the Malawian authorities until this matter has been fully resolved,” reads a statement quoting Norwegian Minister of International Development Heikki Eidsvoll Holmås.
Norwegian support to Malawi focuses on areas such as food security, HIV and Aids, tuberculosis and malaria.
Spokesperson for the Ministry of Finance Nations Msowoya said on Saturday government has not received official communication from Norway on the decision.
“We will have to adjust the budget downwards by that amount,” said Msowoya.
