Zambia to lose $57m over graft

LUSAKA, Friday

Sweden has cancelled about $57 million budget support to Zambia because of the southern African nation’s laxity to fight corruption, its ambassador said.

“The Swedish Government decided two weeks ago that it will not pay the budget support for the year 2010 and it will not commit for 2011 and that is because we are all concerned with the commitment to fight corruption,” said Ms Marie Anderson de Frutos, Swedish ambassador to Zambia.

Sweden would like to see commitment to the fight against corruption globally, not just in Zambia, she said.

However, Ms Frutos said Sweden would still contribute Swedish Kronor 400 million (about $57 million) to Zambia through other implementing groupings but not under direct budget support.

Failing to fight corruption

Sweden and other western donors have frequently criticised the Rupiah Banda government for failing to fight corruption, especially after the acquittal of former president Frederick Chiluba on corruption charges, although the government dismisses those assertions.

In retaliation, President Banda, mid this year, dared the western donors and diplomats to “pack their bags and go” for what he termed “meddling in Zambia’s internal affairs”.

Sweden and the Netherlands in 2009 suspended aid to Zambia’s Ministry of Health following revelations of theft of about $5 million public funds, including those from donors, in the docket.