It has been reported that last week the government told ambassadors from donor countries that they must keep the government informed of their activities, including the total funding brought into the country and the names of non-governmental organisations (NGOs) that they are partnered with.

According to The Zimbabwe Independent newspaper, the instructions came from the Minister for Regional Integration and International Cooperation, Priscilla Misihairabwi-Mushonga. She also chairs the Government Development Forum, which was recently set up by government as a platform for donors and officials to discuss problematic issues. She also said that government 'should be the dominant player in aid co-ordination and aid-distribution'.

The move has been strongly criticized by a number of observers who see it as an attempt to divert donor funds from projects that the government doesn't like.

Reports said the United States has already issued a warning against government control of funds, saying donors were already working under strained and difficult conditions, laid out by the Zimbabwean authorities.

Other observers have commented that they were more surprised at the fact that it was an MDC minister who dished out the news. Before the formation of the coalition government, Misihairabwi-Mushonga was an official in the opposition MDC and had opposed government interference into the affairs of NGOs.

But now she is quoted as saying: "It is the government that defines where aid should go. We now require everyone in the country to inform us about their aid work, how much they are spending and which areas they are working on. Right now we don't know and are not sure who is doing what or working with whom and through which NGOs,"

Machinda Marongwe, deputy director of the National Association of Non-Governmental Organisations (NANGO), explained that Misihairabwi-Mushonga does not have the institutional framework that will enable her to conduct such an ambitious project.

He said: "Our economy is very fragile. We need international support and do not need to be sending out mixed signals, just like the Indigenous Bill is doing. We are sending signals, which are not consistent with development, to the international community."

Marongwe added that NANGO has never objected to issues of regulation but he believes Misihairabwi-Mushonga is approaching the issue from an entirely wrong angle.

At a time when foreign aid is critical for Zimbabwe's survival, observers are saying that foreign support could be severely threatened if government pursues this policy.