World Economy

WB Resumes Malawi Aid

WB Resumes Malawi AidWB Resumes Malawi Aid

The World Bank has resumed direct budget support to impoverished Malawi with an $80 million injection three years after donors pulled out due to a “cashgate” corruption scandal, officials said today, OutlookIndia reported. Donors, which provide about 40% of Malawi’s budget, in 2013 pulled the plug on aid of around $150 million after British auditors said at least $30 million was stolen from state coffers over a six-month period. The bank, a major backer of the southeast African country’s tough economic reforms, had in the past said support would only come if Malawi implemented financial management systems that would stop fraud and massive theft of state funds. The “cashgate” affair erupted with revelations about funds going missing involving dozens of officials, businessmen and politicians. Four people were jailed. The scandal led to the withdrawal of aid by numerous countries. It also contributed to the defeat of president Joyce Banda in elections in 2014, won by her rival Peter Mutharika who took office vowing to fight corruption.


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