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Mkullo refutes reports on donor budget support freeze
2008-05-02 09:23:06
By Perege Gumbo
The government has refuted as baseless reports that the donor community has threatened to freeze aid flow to Tanzania following allegations that there had been massive misappropriation of public funds by some government leaders.
Finance and Economic Affairs Mustafa Mkullo, however, admitted that the donor community had expressed grave concern over the allegations.
``But we have discussed with the donors how to handle the matter. We are happy that they have appreciated the way the government is fighting the vice,``he said.
Mkullo was responding to questions from legislators at the end of a workshop for MPs held in Bagamoyo on Wednesday.
He said the donor community had wanted the government to embark on dealing with what they called grand corruption, including the central bank's External Payment Account (EPA) scandal and the controversial power generation contract awarded to non-existent Richmond Development Company.
Some Members of Parliament asked the minister why the government was not taking legal measures against people alleged to have been involved in corruption scams despite repeated revelation of names of leaders who had either embezzled or misused public funds.
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