Mozambique: Denmark to reduce budgetary aid to Mozambique

20 August 2008

Maputo, Mozambique, 20 Aug – The Danish government has announced it will reduce its budgetary aid to Mozambique by US$47 million, according to a report from Mozambican news agency AIM published Tuesday.

Cited by Portuguese news agency Lusa, AIm reported that the Danish finance minister, Lars Lokke Rasmussen, had said that his government had decided to reduce its aid to Mozambique by US$47 million, despite declining to say if the move was due to irregularities in Mozambique’s financial management.

Norway and Sweden both recently announced, through their embassies in Maputo, that they would keep their level of aid to the Mozambique state budget unchanged due to what they consider to be “a lack of progress in fighting corruption in the country.”

Two years ago, and audit carried out by the Danish Embassy in Mozambique led Copenhagen to announce the suspension of a cooperation programme with Mozambique in the Education sector, in Zambézia province, due to the audit having detected, “extensive irregularities,” in its administration.

Reacting to this decision, the Mozambican minister for Planning and Rural Development, Aiuba Cuereneia said that Mozambique had been “caught by surprise,” as, despite a meeting of the Mozambican government and Danish representatives in Maputo, no indication was given about this move. (macauhub)