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Australia sacks aid contractors over fraud - paper

by Thin Lei Win | @thinink | Thomson Reuters Foundation
Wednesday, 16 November 2011 11:54 GMT

Aid fraud and mismanagement has reportedly cost the taxpayer more than $200,000 in past five years

BANGKOK (TrustLaw) - Australia’s government agency for foreign aid, AusAID, has sacked 32 contractors in the past five years for fraud or botched projects, according to the West Australian, citing figures published in transcripts of parliamentary proceedings.

Those dismissed include aid workers trying to improve Papua New Guinea’s justice system, members of an HIV/AIDS programme in Zimbabwe, and contractors working on a nutrition and community health project in East Timor.

“The rip-offs and bungling cost taxpayers more than 200,000 Australian dollars (US$203,556),” said the paper, adding that most of the sackings occurred in Papua New Guinea, Fiji and East Timor.

An AusAID spokeswoman told the newspaper the cases of fraud and mismanagement amounted to $218,500, with almost $171,000 recovered so far.

She added that the agency conducts regular audits of contractors, and any companies and non-governmental organisations blacklisted for fraud are banned from bidding for new contracts.

"AusAID has a zero tolerance policy towards fraud in the aid programme," the spokeswoman said.

 

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