Ethiopia: Donors Withhold Budget Support To Government

ADDIS ABABA , Dec 29, 2005 (IRIN) – Donors have put on hold US $375 million in budget support to the Ethiopian government because of a crackdown on opposition supporters, development officials said Thursday. They said the money would be diverted to other programmes in the country.

"Until the situation gets better we will look to disburse funds in other ways, but we are not going to halt aid to the country because it is one of the world’s poorest," a senior development official, who spoke on condition of anonymity, said.

On Wednesday, 129 opposition leaders, journalists and members of the civil society were again remanded in custody on charges ranging from treason to genocide. Most of the defendants were arrested during the disturbances that erupted after political parties alleged that the ruling bloc had massively rigged in elections held in May.

Some 42 people were killed in clashes between demonstrators and security forces in June. At least 46 people died in political disturbances around the country in November.

Another senior development official said all budget support donors wrote the government two weeks ago informing it that would be diverted to other purposes. Some donors are exploring the possibility of channeling the funds to local authorities, while others intend to disburse the funds through UN agencies.

Government officials were not immediately available for comment.

Britain , Canada , Ireland , Germany , Sweden , the African Development Bank, European Commission, the World Bank provide Ethiopia with budget support. Ethiopia receives a total of $1.9 billion in various types of aid each year.

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