Suspended aid to resume soon - government

Millions of dollars worth of aid to Malawi suspended due to corruption and the curtailment of the government's privatisation programme will be released soon, a government spokesman told IRIN on Tuesday. "Although some aid had been suspended because of problems over privatisation, agreement has been reached with donors and the monies are set to flow again," Anthony Livuza said. According to a report on Monday in Malawi's Daily Times, the European Union (EU), the United States and British governments have suspended K1.5 billion (US $23 million) worth of aid pledged for this year's budget because of top level corruption and the suspension of the government's controversial privatisation programme. "There were certainly problems with the privatisation programme, there was concern that government was not getting the right price for the sell-off of certain assets, that's why it was suspended," Livuza told IRIN. He emphasised that the privatisation process had been as open and transparent as possible, with tenders advertised locally and internationally. According to the Daily Times, the EU had decided to withhold K700 million (US $10 million) and had asked government to refund K400 million (US $5.2 million) alleged to have been misused by government in the tendering of the rehabilitation of the Blantyre-Chileka road. The government's privatisation programme was suspended early this year but President Bakili Muluzi in his opening speech for the current session of parliament reversed the decision. About 35 parastatals have so far been privatised since the programme started four years ago. On the issue of corruption, Livuza said that the necessary reassurances had been given to donors that graft was being rooted out in all areas of government. "We are still in consultation with some countries that fund us, but there is progress on this," he added.