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K200bn World Bank funds untapped

Malawi is yet to tap K200 billion ($394.9 million) from the World Bank which committed to disburse about K413 billion ($825 million), The Nation has established.

In a Malawi Country Portfolio Performance Review (CPPR) Scoping Mission Report of June 2014, the World Bank said the money has not been given due to delays on the part of the Malawi Government to either recruit personnel or approve the authorisation bill in Parliament, disagreement on the rate of allowances to be used during workshops and a general lack of capacity in government, among others.

Msowoya: We are aware of the challenges
Msowoya: We are aware of the challenges

The portfolio performance which includes—Education, Water, Environment, Transport, Social Protection, Public Sector Governance, Finance and Private Sector Development, Energy and Mining, Agriculture and Rural Development and Health, Population and Nutrition—has since weakened.

Reads the report in part: “Since the previous CPPR held in March 2013, the performance of the portfolio has weakened. Disbursement rates have decreased and there is an increased number of risky and problem projects in the portfolio.

“Over 30 percent of the projects are at risk. Many of the findings from the scoping mission that appear to be impeding portfolio implementation effectiveness and efficiency are consistent with past reviews. These include staff attrition, lack of dedicated staff/personnel allocated to project implementation which impacts speed of procurement and implementation, fiduciary deficiencies, including ineligible expenses and poor record keeping, and lack of compliance to legal covenants.”

Reacting to the report, Ministry of Finance spokesperson Nations Msowoya confirmed existence of such funds.

Said Msowoya: “As Ministry of Finance, we are aware of the challenges that different sectors implementing World Bank-financed project face. In order to resolve these problems, the Ministry of Finance is working with the World Bank to find solutions to some of the challenges so that we accelerate disbursement.” n

 

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