EU not resuming direct budget support to Malawi government

Finance, Economic Planning and Developement minister  Goodall Gondwe has clarified that the European Union (EU) did not make any pledges resume  direct budgetary support to the country.

Gondwe told  Parliament  last Friday that government expects additional budgetary support from the EU.

But the Finance Minister has now said EU had not confirmed it will release budgetary support.

Gondwe clarified that he meant EU  could “ possibly resume aid.”

And rthe  EU Ambassador Marchel Germann has said the EU never set he passing into law of the Access to Information (ATI) Bill as one of the preconditions for the return of direct budgetary support.

Gondwe is on record telling  Parliament that among the conditions from EU was the tabling of the Access to Information Bill, elimination of ghost workers plus reforms in the Fertiliser Input Subsidy Programme (Fisp).

EU ambassador however congratulated President Peter Mutharika on assenting to the ATI.

The EU alongside other western financial institutions and bilateral donors suspended direct aid to Malawi over widespread concerns about massive theft of public money and have called for improvement in the public finance management system.