Tanzania’s international donors said on Thursday that they have agreed to release a further 44 million U.S. dollars through the general budget support (GBS) as they were satisfied with steps taken over the energy graft scandal.
The newly release brings the total amount of money released by donors through the general budget support to 130 million dollars.
A joint statement by the government of Tanzania and the international donors said the decision to release the money was reached on Wednesday after successful talks.
“During the meeting, it was agreed to resume budget support arrangements before the end of the current fiscal year,” said the statement issued in Dar es Salaam.
Following the energy graft scandal which involved the illegal transfer of at least 122 million dollars, a group of 12 international donors said they will not pay outstanding budget support pledges worth nearly 500 million dollars until the government responded to the allegations appropriately.
The Tegeta escrow account scandal saw the resignations and sackings of top government officials, including ministers and the east African nation’s attorney general.
The scandal also forced Tanzanian President Jakaya Kikwete to reshuffle his cabinet.
The statement said international donors were envisaging further disbursement decisions following their respective procedures.
During the meeting, the Tanzanian government confirmed that it will continue to handle the energy graft scandal, including ongoing processes and investigations in line with good governance principles, said the statement.
The international donors pledged their willingness to collaborate with the government in governance reforms and in strengthening the capacities of anti-corruption institutions.
International donors who are currently engaged in the budget support are Canada, Denmark, Finland, Germany, Ireland, Japan, Sweden, UK, the European Union, the African Development Bank and the World Bank. Enditem