It was the first acknowledgment by the military government, albeit indirectly, of problems with relief operations in the aftermath of Cyclone Nargis.

The warning came amid reports that foreign aid was being sold openly in markets, and that the military was pilfering and diverting aid for its own use.

The ruling junta has been blasted by aid agencies for refusing to allow most foreign experts into the hard-hit Irrawaddy delta and not responding adequately to what they say is a spiraling crisis.

Relief workers reported that some storm survivors were being given spoiled or poor-quality food rather than nutrition-rich biscuits sent by international donors, adding to fears that the ruling military junta in the Southeast Asian country could be misappropriating assistance.

New York-based Human Rights Watch said in a statement on Wednesday that it had confirmed an Associated Press report that the military had seized high-energy biscuits that came from abroad, and distributed low-quality, locally produced biscuits to survivors.

yesterday's state radio announcement obliquely denied the military was misappropriating aid.

Elisabeth Byrs, spokeswoman for the UN Office for the Coordination of Humanitarian Affairs, said aid workers who visited all the major markets in Yangon found no evidence of hoarding or sale of relief goods.

International Federation of Red Cross and Red Crescent Societies spokesman Matthew Cochrane said the organisation also had not received any such reports.

The government said yesterday that the official death toll from the May 2-3 cyclone had climbed by almost 5 000 to 43 318.

The number of missing has remained at 27,838 for at least two days.

But the International Federation of Red Cross and Red Crescent Societies estimated the death toll was between 68 833 and 127 990.

The UN says more than 100 000 may have died.

The UN and the Red Cross say between 1,6 and 2,5 million people are in urgent need of food, water and shelter.

Only 270 000 have been reached so far by the aid groups.

Nampa-AP

World News Headlines Of The Last 48 Hours