Oslo - Norway has suspended budget aid to Malawi, one of
the poorest nations in Africa, because of alleged corruption and embezzlement,
the foreign ministry said on Friday.
"There are clear signs that substantial funds have
been embezzled from the Malawian ministry of finance," Norway said in a
"We have a policy of zero-tolerance for corruption,
and cannot disburse any more budget support to the Malawian authorities until
this matter has been fully resolved," development Heikki Eidsvoll Holmaas
So far this year Norway provided $41.4m worth of aid to
Malawi, a fifth of which was in the form of budget support.
Norway is one of the world's biggest foreign donors and
expects to donate $5bn this year to dozens of developing nations.
Earlier this month it decided to reduce its aid to
Afghanistan, signalling to Kabul that it has not done enough to combat
corruption and violence against women.