High stakes for Tanzania as 14 donors put budget support on hold

Tanzania may face cuts in international aid following an audit which concluded that the Bank of Tanzania had made irregular payments of USD 113 million to 22 companies.

A united group of 14 donors, that last year provided USD 670 million in budget support, has delayed disbursement of funds for 2008. On behalf of the donors, the United Kingdom has written a sharp letter to the Tanzanian government asking tough questions about how the matter will be followed up.

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