92000E3700

WRITTEN QUESTION E-3700/00

by Glenys Kinnock (PSE) to the Commission

(29 November 2000)

Subject: Malawi

Would the Commission outline its response to the allegations of corruption made in the European press against the Government of Malawi?

Answer given by Mr Nielson on behalf of the Commission

(9 January 2001)

The Commission services have been aware for some time of the apparently growing incidents of alleged corruption in Malawi. They are also aware of the most recent allegations made in the European press, focusing more particularly on the Government's intention to purchase 39 Mercedes Benz vehicles for government ministers. This particular issue is viewed more as an instance of poor governance than as an example of corruption.

It is interesting to note that the matter of ministerial vehicles was given some prominence in the Malawi press itself, in blatant juxtaposition to an article concerning serious needs in the human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS) sector, where the financial requirement for the intended undertaking in this field amounted more or less to the cost of the 39 Mercedes Benz. More interesting even and perhaps reassuring in the given circumstances is that the newspaper which carried the articles is owned by a senior member of the Government itself. You may already be aware that, since then, concerted donor disquiet has led to President Muluzi's decision to sell the vehicles and to use the proceeds towards reducing poverty.

The Commission continues, both through its local representation and in Brussels, to keep a close watch over the manner in which EDF funded activities are managed and to bring about corrections of any attempts at circumventing established EDF financial regulations. So far the potential incidents have been contained and there has not been need to take more overt, official action. It should be stressed that all disbursements of EU funding, whether from the EDF or the Community budget, are very closely monitored and regularly audited. There is currently an audit team in country looking into Structural Adjustment Facility funding and Food Security/Food Aid funding. It is the Commission's firm intention to strengthen such monitoring and auditing measures generally, not only in Malawi. The Commission is preparing a Country Support Strategy in the context of the new Cotonou Agreement, which will include its considered assessment of Article 9 issues, including corruption, as well as its response strategy.

The Commission has in all its development assistance to Malawi sought to promote and strengthen indigenous good governance practices and more specifically has an on-going programme of assistance to the country's legal sector with its Rule of Law Programme, funded under the Malawi National Indicative Programme. The Anti-Corruption Bureau, which regularly brings issues of corruption into the public eye, and whose most recent investigations have culminated in President Muluzi's decision to sack three Government minsters on charges of corruption, receives some support under this Programme. It is perhaps through the strengthening of such national institutions that a measure of restraint on corruption can best be assured.