AfDB injects $4.6m to cushion cashgate sting
The African Development Bank (AfDB) has given Malawi a grant of $4.6 million (K1.8 billion) towards public finance management institutional support project.
Speaking at a signing ceremony of the grant agreement in Lilongwe on Tuesday, AfDB resident representative Andrew Mwaba said the grant has been facilitated with speed following the looting from government coffers.
Mwaba said: “This project was discussed and agreed earlier, but it was approved by the board in the shadow of the recent developments at Capital Hill. We are signing the protocol at a time when government is working on issues of fraud and abuse of public resources.”
He said the project would also involve the strengthening of capacity in revenue administration, enhancing efficiency and controls in public procurement.
Minister of Finance Maxwell Mkwezalamba, who signed the grant agreement on behalf of government, said such funds will help to promote good governance in the country.
“The money will improve good governance through efficient and effective utilisation of public resources. One of our weaknesses in Malawi was public finance management. Therefore, this financial support will encourage our efforts to be prudent in the way we use public funds,” said Mkwezalamba.
The minister expressed hope that implementing institutions namely Malawi Revenue Authority (MRA) and Office of Director of Public Procurement (oDPP) will ensure that the project delivers on its intended objectives for the benefit of the Malawian.
There have been worries among the donor community on the safety of the money they give to Malawi following exposure of unscrupulous transactions at Capital Hill which saw government, ruling party officials and some business people siphoning billions of kwacha from government coffers.
