| Author (Person) | Cronin, David |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.10, No.14, 22.4.04 |
| Publication Date | 22/04/2004 |
| Content Type | News |
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By David Cronin Date: 22/04/04 DEVELOPMENT Commissioner Poul Nielson has ruled out calling a probe into why nearly all of a €4.5 million aid payment to Zimbabwe was lost because of the "unrealistic" exchange rate imposed by the Harare authorities. In its 2003 annual report, the European Court of Auditors cited how the Commission's delegation to the southern African state converted €4.5 million into Zimbabwean dollars (ZWD) at the official rate in one transaction made the previous year. Under this exchange rate, some 235 million ZWD was obtained, whereas it would have been possible to obtain 2,100m ZWD if the sum had been exchanged on the black market. The auditors calculated that "almost €4 million - or 89% in purchasing power" was lost to the people of Zimbabwe due to the differences between the exchange rates. The auditors contended that EU aid to the country could have been "more effective" if the Commission "had more swiftly obtained the Zimbabwean authorities' agreement for accounts held in Zimbabwean dollars to be funded at an exchange rate based on economic reality". Yet in response to a recent query by UK Conservative MEP Nirj Deva, Nielson said he did not accept the auditors' analysis. He said that because "the official exchange rate is a matter of national sovereignty", the only way to apply a different rate is to negotiate with the national authorities and banks. |
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| Source Link | http://www.european-voice.com/ |
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| Countries / Regions | Africa |
