Tanzania probes $250m graft claims

File picture: www.freeimages.co.uk

File picture: www.freeimages.co.uk

Published Oct 17, 2014

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Dar es Salaam - Tanzania said Friday it was investigating claims of a 250 million dollar financial scandal involving top public officials after donors withheld hundreds of millions in aid.

Opposition lawmakers claimed in parliament that senior government officials had stolen around 250 million dollars (198

million euros) from public coffers, prompting foreign donors to suspend some 558 million dollars (440 million euros) in budget support.

Tanzania's deputy finance minister Adam Malima told AFP the government was taking the graft allegations seriously and that “no stone will be left unturned” by investigators.

“An investigation is going on, and once it's complete we will take the necessary steps,” Malima said.

“The government considers the fight against corruption a top priority, and we are taking a very strong stand on that.”

Britain, Canada, the European Union and Japan are among donors which have delayed funds to Tanzania in the wake of the allegations. Money will only be released if donors are satisfied with the investigation.

“Budget support development partners in Tanzania take the emerging case with the utmost seriousness and are carefully monitoring its development, as the case involves large amounts of public funds,” Finland's ambassador to Tanzania, Sinikka Antilla, told AFP.

“Development partners are now awaiting the controller and auditor general's report and information about its key findings, as well as a response from the government, which will inform decisions on further disbursements,” said Antilla.

He chairs the group of key donors, including Western nations, the World Bank and African Development Bank (AfDB).

The World Bank's head in Tanzania, Philippe Dongier, said the body was “engaged in dialogue” with the government “regarding budget support.”

Opposition leaders said the east African risked losing millions of dollars, which would deal a blow to the east African nation's donor-funded development programmes.

“Donors are now withholding the funds meant to support the 2014-15 budget as they await the probe findings,” said David Kafulila, an opposition lawmaker, who launched the calls in parliament for an investigation.

“If the government fails to take serious action, our development partners will not release the funds and as a result, development projects will be affected.”

Tanzania's economy, which largely depends on agriculture, saw a seven percent growth in gross domestic product last year, boosted by gold exports and tourism.

While the government hopes large gas and coal finds will boost the economy, almost a third of the country lives below the poverty line and foreign aid remains vital.

Sapa-AFP

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