Denmark has suspended funds to three out of
four research programs in Vietnam, following a review that unearthed US$550,000
worth of misuse at the said climate change projects.
“We are
now working with the Vietnamese government and partner institutions to deal
with this serious issue. The initial response from the Vietnamese government
has been cooperative,” states the Danish Ambassador to Vietnam, John Nielsen,
in a statement released Friday.
Denmark
government, via the Danish International Development Assistance (DIDA), has
provided grant assistance to the implementation of four research projects on
climate change in Vietnam.
They
include: “Impacts of Climate Change on Land Use change in the Red River Delta
and its Community Livelihood Change” (granted in 2009), “Assessing the Impact
Trends of Climate Change on Physical and Environmental Conditions and
Socio-Economic Development in Central Vietnam” (granted in 2008), “Climate
Change and Estuarine Ecosystems in Vietnam” (granted in 2008), and “Improving
rice tolerance of submergence and salinity to cope with climate change in
coastal areas of Vietnamese Deltas” (granted in 2009).
According
to a report released by the Danish Department Quality Assurance of Development
Assistance, funding for the first three projects will be suspended, while the
last one will continue to receive funding under a stricter supervision and
management.
The
fund cut was imposed following an independent review by Price Waterhouse
Coopers (PWC), which uncovered “numerous irregularities,” Denmark’s newspaper
The Copenhagen Post reported.
“It is
important to crack down on those caught misusing Danish aid funds in order to
clearly demonstrate the consequences,” Christian Friis Bach, Denmark's Minister
for Development Cooperation, wrote on the ministry’s website.
“Those
that cheat must be stopped and punished.”
The
frauds detected by the audit include use of consultancies for own benefit,
overcharge of internal facilities and cash deficit compared to the balance of
the cash book, the Danish Embassy in Hanoi wrote in its press release.
The amount
of unjustified use of funds could potentially be as much as DKK 3.3 million, or
roughly US$550,000.
The
Embassy, however, said it has yet to able to comment further on the case with
reference to the on-going verification, adding “the observations need careful
evaluation by the two governments and the implementing institutions before
final conclusions can be made.
TUOI
TRE
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