LILONGWE (MaraviPost) — Malawi may still not be able to get budgetary support from its development partners following the former’s revelation that they still want “financial systems cleaned up,” Maravi Post has learnt.
Malawi gets up to 40 per cent of its budget money from donors, through the Common Approach to Budgetary Support (Cabs).
However, since the revelation of massive fraud at Capital Hill last year dubbed cashgate under former Pres Joyce Banda’s government, development froze millions of US dollars of aid money to Malawi.
Local financial commentators had hoped that with the change of regime following Pre Peter Mutharika’s last week’s victory, the resumption of aid money would be automatic.
But head of Cabs in Malawi Alexander Baum said grouping’s position “is not related to the government in office but to the substantive failures in public finance management system discovered towards the end of 2013.”
Last week new Finance Minister Goodall Gondwe presented a provisional K210 billion budget to parliament.
Pres Mutharika had said in his state of the nation address that the entire fiscal budget would be ready in September.