Jun 3, 2012

Vietnam - Denmark cuts off aid funds to Vietnam over misuse

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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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