Tanzania Daily News (Dar es Salaam) 13 JANUARY 2015 Tanzania: When Donors Keep Shifting Goal Posts in Unlocking Aid! THE International Monetary Fund (IMF) last week expressed its satisfaction on Tanzanias economic performance, where growth was expected to be maintained at above 7.0 per cent levels and inflation tamed in mid-single digit. The latest report by the National Bureau of Statistics (NBS) shows that year-on-year inflation for December 2014 reached 4.8 per cent quite in line with the governments target of 5.0 per cent. During the period under a joint review by the government and IMF as part of the Policy Support Instrument (PSI) arrangement, most of the countrys macroeconomic indicators were healthy. The IMF officials, however, noted with concern delays in aid disbursements over graft allegations in the energy sector and revenue shortfalls risk. The Breton Woods Institution pointed out that the trend, if not reversed as soon as possible, might end up undermining Tanzanias sturdy economic growth. A group of 12 donors said last year that they will only pay outstanding budget support pledges worth nearly $500 million after Tanzania takes appropriate action against corruption. The donors had by the end of last year disbursed only 15 per cent of their pledges to the 2014/2015 Budget Support, insisting that claims of fraud and corruption in the transfer of billions of public funds to a private firm must be probed and proper action taken against culprits. The Controller and Auditor General (CAG) concluded the probe and heads have started rolling and more action is supposed to follow after further investigations on suspect public officials. Despite measures taken by the government to address the alleged wrong-doings by some public officials, the development partners are still reluctant to unlock the much needed government budget support aid. Some of their representatives were recently quoted as saying that they were still studying the matter and measures being taken before releasing funds expected to finance important projects including infrastructure development, health, education, energy and water supply. In so doing the development partners are frustrating the countrys efforts in implementation of its growth and poverty reduction strategies (MKUKUTA). The Development Partners (DPs) are the African Development Bank (AfDB), Canada, Denmark, the European Union, Finland, Ireland, Japan, Germany, Norway, Sweden, United Kingdom and the World Bank. The DPs were supposed to contribute 922bn/- as GBS during the 2014/2015 financial year, but so far only 140.6bn/- has been disbursed, representing 15 per cent the agreed amount. This means the countrys plans in infrastructure development, health, education, energy and water supply for 2014/2015 fiscal year might not be fulfilled because 85 per cent of the funds are yet to be made available. Under normal circumstances the donors are expected to disburse about 60 to 70 per cent of the pledged funds by the end of the first quarter of the financial year - that means by September 2014. With the ongoing delaying tactics or shifting of goal posts on the part of donors, the nation will be forced to wait indefinitely. In the first place the reasons for withholding the funds are outside agreed underlying principles of cooperation. The five agreed underlying principles by the Tanzania government and the DPs are maintaining sound macro- economic policies; commitment to MKUKUTA II objectives and millennium development goals (MDGs); strengthened budgeting, public finance management, fostering rule of law and respect of human rights, as well as good governance. It is unfortunate that the donors opted to withhold funds without engaging the government fully before making such a decision. The Prime Minister, Mr Mizengo Pinda, rightly observed in the National Assembly, last year that the move by the partners was unfair to millions of Tanzanians.
Posted on: Wed, 14 Jan 2015 02:02:20 +0000
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