AusAid Programs Plagued By Fraud Cases, Report Says

    A world Food Programme ship delivers food aid funded by the Australian government in Sumatra. The Australian Agency for International Development is investigating fraud cases in the country's foreign aid program. Photo by: M Anshar / AusAID

    The Australian Agency for International Development is investigating 175 cases of fraud in the country’s 4.5 billion Australian dollar ($4.5 billion) foreign aid program.

    The cases involve misuse of funds and aid diversion by corrupt overseas agencies and officials in some 27 countries that are costing Australia billions of dollars, according to the Daily Telegraph, citing AusAid documents acquired through the country’s Freedom of Information Act.

    Food and other aid supplies are also being diverted and resold at inflated prices in black markets, the Australia-based newspaper says. It added that, while AusAid, is working to improve fraud control mechanisms, its efforts are sometimes undermined by the reluctance of police forces to intervene in local criminal cases.

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    About the author

    • Ivy Mungcal

      As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.