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Malawi’s Banda Grapples With ‘Cash-Gate’ to Save Government

Malawian President Joyce Banda is struggling to assuage donor and public demands for a crackdown on corruption that may tarnish members of her People’s Party and undermine her chances in May elections.

The European Union has threatened to withhold the release of a 29 million-euro ($39 million) aid payment in December unless the government deals with corruption allegations, dubbed “cash-gate” by Malawi’s media. While Banda, 63, has set up a special unit of police and government officials to audit state finances, she hasn’t agreed to calls by donors, which fund about 40 percent of the budget, to enlist foreign investigators.