Rajoelina's battle of wills with the World Bank puts aid programmes in danger
A growing number of differences between the World Bank and President Andry Rajoelina could end up costing the Madagascan government hundreds of millions of dollars.
Antananarivo's anti-corruption unit has secured the arrest of several former top managers at the national electricity supplier Jirama, including the man whom its current CEO Vonjy Andriamanga wanted to appoint as his number two. But the affair has also drawn in the consortium SMTP owned by the industrialist Danil Ismaël.
Even though works are set to start in the coming months, President Andry Rajoelina is backing the Eiffage-led consortium into a corner, demanding negotiations be reopened into the price of electricity that the Sahofika dam will generate.