Donors to withhold $375m from Ethiopia - report
(Reuters)
Updated: 2005-12-29 14:04

Western donors plan to withhold $375 million in aid from Ethiopia over the government's recent crackdown on opposition supporters, The Financial Times reported on Thursday.

"We are very concerned and have taken principled positions, along with our development partners, on the recent disturbances," Ishac Diwan, the World Bank's country director, was quoted by the FT as saying.

The $375 million involved is direct budgetary support. Diwan said until the situation improves the World Bank, the European Union and Britain will look to disburse the funds in other ways to meet Ethiopia's humanitarian needs.

"Because of the situation, trust has broken down so we are trying to find other ways of doing it," the FT quoted another western development official as saying.

The Ethiopian government arrested thousands of opposition members and others after two spasms of violence struck the capital Addis Ababa, in July and November, over the disputed results of a May 15 parliamentary election.

At least 82 people were killed in clashes with police and soldiers.

The main opposition Coalition for Unity and Democracy (CUD) and other opposition parties made gains in the elections but accused the government of vote fraud and intimidation that cost them more seats.

Ethiopia has charged 131 people with treason, inciting violence and planning to commit genocide. Senior political figures from the CUD and 13 journalists were among those charged.

Prime Minister Meles Zenawi has said rioters and looters were to blame for the violence, which he said the opposition deliberately stirred up in a bid to topple the government.

Britain announced earlier it planned to freeze a 20 million pound ($35.36 million) increase in aid to Ethiopia.

The Horn of African country is sub-Saharan Africa's second most populous and is ranked the seventh poorest in the world. Foreign donors finance about one third of Ethiopia's annual budget, sending more than $1 billion a year to the country.