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Finance & Banking
April 24, 2024

World Bank Halts Tanzania Tourism Fund Amid Allegations of Misuse

The World Bank has suspended a tourism development fund in Tanzania following allegations of misuse. This move seeks to investigate and address claims of financial misconduct, ensuring that funds are used appropriately and effectively to promote sustainable tourism in the region.

The World Bank logo is seen at the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington, U.S., April 13, 2023. REUTERS/Elizabeth Frantz/File Photo Purchase Licensing Rights

DAR ES SALAAM, April 24 (Reuters) - In a recent development, the World Bank has announced a halt on further allocations from a $150 million fund earmarked for the expansion of a key national park in southern Tanzania. The decision, revealed by a spokesperson on Wednesday, comes in response to allegations received by the lender regarding incidents involving rangers last year. According to the World Bank's independent complaints mechanism, two unnamed individuals have lodged complaints accusing rangers from the Ruaha National Park of a range of serious offenses including extrajudicial killings, enforced disappearances, evictions, torture, and confiscation of cattle against local residents.

In response to the disturbing allegations surrounding the project in Tanzania, a spokesperson for the World Bank expressed profound concern, stating, "The World Bank is deeply concerned about the allegations of abuse and injustice related to the... project in Tanzania." Consequently, the spokesperson declared an immediate suspension of further fund disbursements. Meanwhile, government spokesperson Mobhare Matinyi countered the accusations, labeling them as false. However, he also affirmed that the government is conducting an investigation to ascertain any potential misconduct among its staff and to take necessary corrective measures.

Matinyi disclosed that the suspended final installment of the loan totals $25 million. This revelation comes amid a backdrop of ongoing criticism targeting various Tanzanian government endeavors aimed at bolstering tourism. Human rights advocates have particularly scrutinized initiatives in the northern region, where numerous Maasai individuals have been forcibly removed from their ancestral lands.

In a damning report released last year by the Oakland Institute, a California-based think tank, allegations surfaced regarding Ruaha park rangers' involvement in instances of sexual violence. The report further contended that communities throughout Tanzania were bearing the brunt of efforts to generate tourism revenues, purportedly aimed at environmental protection.

The Tanzanian government asserts that the expansion of the tourism sector is pivotal to fostering economic development, emphasizing that it has ensured fair compensation for individuals displaced from their residences.

Approved by its board in 2017, the World Bank project is slated to conclude in February 2025. The initiative, aimed at bolstering the national park system in Tanzania, has been under scrutiny following allegations of misconduct and injustices perpetrated by park rangers.

Source: Reuters

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