(AFP) – 22 hours ago

KATHMANDU — International donors in Nepal on Monday suspended millions of dollars in funding for education programmes following allegations of corruption against a government minister.

The move follows reports that Education Minister Ram Chandra Kuswaha is being investigated by a parliamentary committee over undisclosed financial irregularities. He denies any wrongdoing.

Losing the funds is a major blow for Nepal, one of the world's poorest countries, which depends on foreign governments and aid agencies for around 25 percent of its 48-billion-rupee (650-million-dollar) education budget.

"Our funds have been suspended. We hope the suspension period will be very short as it is the children who will suffer," said Ove Fritz Larsen of the Danish embassy in Kathmandu, which coordinates international donors.

"It has been a very difficult decision, but we want to see the outcome of the government's investigations."

The foreign funds were destined for the school sector reform plan, a government programme aimed at reducing poverty in Nepal by providing schooling for all.

Currently only 80 percent of students in Nepal complete primary education, with girls and children from low-caste communities most likely to drop out.

The donors, which include the World Bank and the UN children's agency UNICEF, took the decision after meeting finance ministry officials to discuss the corruption allegations, the details of which have not been made public.

AFP could not immediately reach the Public Accounts Committee -- the parliamentary committee conducting the investigation -- for comment.

Larsen said the donors were also concerned about a separate investigation last year that uncovered financial irregularities at a printing firm used by the government to produce school text books.

The education ministry said it took the allegations very seriously.

"The Commission for the Investigation of the Abuse of Authority has written to us about the financial irregularities and asked us to take action," spokesman Lekhnath Poudel told AFP.

"It is understandable for development partners to be curious and concerned about corruption allegations. We take this very seriously."

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