The Visiting team of International Monetary Fund experts (IMF) has advised Malawi government to postpone all domestic financed development projects in line with discretionary spending in the national budget.
This comes barely two weeks after most donor partners under CABS announced the delay of 150 million dollars in direct support to the country’s national budget.
The team has since described the cash gate scam as pure theft, unfortunate, damaging and a disgrace to the country’s reputation.
The two weeklong visit which was aimed at finding long lasting solutions to the country’s economic woes ends today.
Speaking to journalists at the conclusion of its mission in Lilongwe, Team leader Tsidi Tsekata says the scandal has also put Malawi as a country at an awkward position as donors have put on hold direct budgetary support.
Tsekata however says his team will continue engaging with the government of Malawi in the coming weeks on few remaining outstanding issues related to budgetary support.
He further says it is also the IMF Team’s hope to see that aid resumes in the country soon.
It is expected that the Team will make recommendations to id that is also expected to make recommendations to the IMF board on the completion of the third and fourth review under the under the extended credit facility (ECF).
The recommendations are said to be of utmost importance as they will enable Malawi to qualify for a disbursement of 20millio US dollars from the International Monetary Fund.
Minister of Finance Maxwell Mkwezalamba has since assured IMF on government’s commitment to cut travel budget among other lower priorities expenditure items.