| The cost of corruption: Donors cut over $300 million aid to Tanzania over the past two years |  |  |
Tanzania has lost more than $300 Million (approximately 450 billion shillings) in aid from donors in just the past two years partly as a result of the government’s failure to prosecute large-scale corruption allegations, This Day can reveal today.
This means that the key poverty reduction projects in education, water, health, energy and infrastructure sectors have suffered from funding cuts as a direct result of graft.
Donors have slashed aid to Tanzania for second straight years since the financial year 2009/2010 citing high-level corruption and the slow pace of reforms in the country.
A group of 12 key donors providing general budget support (GBS) to the government announced recently that they had significantly reduced aid to Tanzania yet again this year.
Donors pledged to provide the government with just $453 million for the 2011/2012 budget that will be unveiled in the Parliament on Wednesday this week by Finance Minister Mustapha Mkulo.
The funding pledges this year have deficit of more than $300 million compared to $754 million (more than 1 trillion shillings) provided for by the donors for the government’s 2009/2010 budget.
Donors said in a statement seen by This Day that number of high-level corruption cases between 2000 and 2008 had damaged Tanzania’s reputation.
‘The government took some decisive actions that help restore confidence, but it remains a concern that some of these cases have not been resolved,’ they said.
‘Progressing these cases towards conclusion as well as implementing promised legislative reforms would help to address the perception that progress in tackling corruption has slowed.’
Donors called for active fight against corruption to restore confidence for future aid disbursements.
They said the reforms efforts in key policy areas such as reducing poverty, improving the business environment, enhancing domestic accountability and improving the quality and equity of public services also need to be expedited to deliver better results.
The donors that provide general budget support (GBS) to Tanzania are the African Development Bank, Canada, Denmark, the European Commission, Finland, Germany, Ireland, Japan, Norway, Sweden, United Kingdom and the World Bank.
Tanzania traditionally has been among Africa’s biggest per capita aid recipients, but now faces serious aid cuts due to widespread corruption in the government.
Two businessmen were recently jailed by Dar es Salaam court after being convicted over the Bank of Tanzania’s external payment arrears (EPA) account scandal.
However, critics of Tanzania anti-corruption fight have accused the government of selective justice after to prosecute individuals linked to the ruling Chama Cha Mapinduzi (CCM) party over similar scandals.
Some CCM members are now demanding of three top ruling party leaders-former Prime Minister Edward Lowassa, former Attorney General Andrew Chenge and business tycoon Rostam Aziz – as a result of slew of corruption allegations facing the trio.
The Prevention and Combating Corruption Bureau (PCCB) is being roundly criticized for its reluctance to investigate and prosecute individuals – both past and present in senior positions in CCM and the government.
Some of the major corruption allegations yet to be prosecuted by the PCCB include the Richmond power generation contract, the military radar scandal, TANGOLD/Meremeta, the dubious privatization of Kiwira Coal mine and many others.
Source: This Day June 6th – 12th 2011, ISSN 1821-5262 NO. 121921
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