'40 percent' of Madagascar budget lost to corruption: PM

Prime Minister Kolo Roger speaks during the ceremony of appointment of the 31 Secretaries of State of his government at Iavoloha Presidential Palace in Antananarivo on April 18, 2014 (AFP Photo/)

Antananarivo (AFP) - Madagascar's Prime Minister Roger Kolo has vowed to stamp out corruption after revealing that 40 percent of his country's budget is lost to graft.

"Forty percent of the state's budget is diverted. That's unacceptable," Kolo told reporters on Thursday.

"The independent anti-corruption bureau, created in 2004, will be restructured and the second national stage of the fight against corruption will be adopted soon," said Kolo, who was named prime minister in April.

According to Madagascar's 2014 Finance Act, its national budget should be 940 million euros ($1.3 billion).

The island nation is one of the poorest in the world and also suffers from one of the highest corruption rates, coming 127th out of 177 nations on Transparency International's annual graft ranking.