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Mozambique: World Bank cuts support to Disaster Management Fund
8:36 CAT | 30 Nov 2022
File photo: RM
The World Bank has suspended its support for the Disaster Management Fund (FGC), which is operated by the Mozambican government’s National Disaster Risk Management Institute (INGD).
According to a report in Wednesday’s issue of the independent newssheet “Carta de Mocambique”, the World Bank took this measure after discovering that over 32.5 million meticais (about 508,000 US dollars, at the current exchange rate) had been diverted from the fund for improper purposes in 2020.
The World Bank informed the Minister of Economy and Finance, Max Tonela, of the suspension in August, warning him that the Bank will not resume its support until all the missing money is returned to the FGC.
The Bank’s letter to Tonela said that the FGC spent money on items that are not eligible for support from the fund. These included more than 18 million meticais spent on purchasing vehicles, 13 million on water and sanitation infrastructures, and 1.5 million on building a bridge over the Muecate river in Nampula province.
But the ministerial diploma approving the manual of administrative procedures for the FGC states that its funds cannot be used to buy vehicles or to finance public building works.
For year three of the FGC, the World Bank had pledged five million dollars. That money will not be forthcoming until the INGD presents an acceptable plan to guarantee the strengthening of acquisitions by the Fund for the prevention of possible future irregularities.
“Carta de Mocambique” adds that to date no such plan has yet been presented.
READ: Mozambique: INGD needs 112 million euros to cover deficit for this rainy season
Source: AIM
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