Where's the Aid Money?

A large part of the Swedish National Audit's devastating report on irregularities concerning development aid money in certain African countries is being challenged by a new report issued recently by SIDA (Swedish International Development Authority). But the National Audit Authority is not changing its view.

In autumn last year, the Swedish National Audit conducted an investigation of 15 SIDA-financed projects and none was found faultless. Ten were found with serious accounting irregularities; five were fraudulent and two had serious indications of irregularities and errors.

It was discovered in the autumn audit that some aid money disappeared without a trace. The audit investigation was made on SIDA-financed projects in South Africa, Namibia, Kenya and Tanzania - with a total budget of SEK36 million. The money was not properly accounted for in the books, accounting procedure was wrong and certain projects were non-existent, to name a few shortcomings.

SIDA, stung by the criticism conducted its own investigation. " Of the National Audit's 30 suspected irregularities 12 were confirmed", says Sture Eriksson, auditor at Allegretto which did the audit for SIDA. He claims that they have investigated deeper into the supposedly 30 suspected projects, which is why they disclaim errors in about half of them. But the new SIDA audit also found irregularities in the accounting.

Regardless of what the SIDA audit found as mitigating circumstances in the use of aid money, the National Audit stands on its own report. A SIDA-supported NGO, Forum Syd is one one of those whose project was criticized. (Translation made from DN report, 20 March 2008)