Zenawi says Ethiopia opposes donor’s reason to cut direct aid

Jan 27, 2006 (ADDIS ABAB) — In an interview with the local press today, Ethiopia’s Prime Minister Meles said that his government opposes strongly the reason given by donor for their decision to cut direct aid to Ethiopian government.

“Donor governments had not cut aid and loans to the country”, however, Zenawi said there were some governments which took the position that direct budgetary support should be channeled through other avenues rather than through the federal government.

Although the government did not differ with such decisions, Prime Minister Meles said “We have big difference on the way the decision was made”.

“Because of our concerns over the political situation I have told the prime minister that we can not provide direct budget support under current circumstances,” UK Development Secretary Hilary Benn said in a written statement to Addis Ababa, on Wednesday 18 January.

“Although we do not oppose the fact that budgetary support was made to be channeled directly to regional states instead of through the federal government, we strongly oppose the reason given for such decisions” said Meles.

Britain has suspended all its 50-million-pound direct aid to Ethiopian government, citing concern over the political situation in the east African state.

“Direct budget support is an expression of trust and confidence in a government, and I have to say that there has been a breach of trust in the light of what has happened in Ethiopia since June,” Benn told reporters after meeting Meles.

“The reason these quarters give for their decision is that actions taken by the federal government do not enable them to continue channeling the budgetary support the way it was being channeled. They have taken this position. We do not think this position is right and proper.

Noting that his government would work tirelessly to ensure the flow of foreign aid and loan to the country to enhance development works, Meles said the country had reached a stage where it could undertake its main and regular programs on its own.

“Right now, we have reached a stage where we can fully cover our regular expenditure. We have also reached a stage where we can cover our capital budget. So, we have reached a stage where our main and regular development programs will not be disrupting by whatever danger we may encounter”, he further added.

On the register of the political dialogue with the opposition parties, Meles said the government had begun constant talks with the opposition Oromo Federalist Movement and members the opposition United Ethiopian Democratic Forces, who joined parliament. According to Prime Minister Meles, the remaining opposition MPs, including those who joined parliament from the opposition Coalition for Unity and Democracy Party can take part in the talks if they wish so.

After further clashes in November which killed close to 50 others, the government detained thousands of people accused of fomenting violence and 131 opposition figures and journalists have been charged with treason and other crimes for allegedly plotting a coup d’etat.

The European Commission also froze its direct aid to Meles’s government last month in response to the political situation, saying it would not affect humanitarian aid but block about 150 million euros earmarked for infrastructure work.

(ST)