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Foreign Aid Fraud Alleged

Published onsdag 2 november 2005 kl 11.34

The newspaper “Dagens Nyheter” reports that investigators have uncovered what may be the biggest fraud in Swedish foreign aid history.

Two and half million dollars intended for projects in Kenya seems to have disappeared.

The newspaper says the Swedish Development Cooperation Authority discovered the discrepancy in June, and a police complaint names both an organization in Kenya and a consultant.

The revelation comes the same day as a report that concludes the use of political power to give favors is contributing to growing economic inequality in Kenya. Funded jointly by Sweden and the World Bank, the report says poverty in one of the poorest countries in the world is growing worse, as Kenya’s slowly rising wealth is channeled into the hands of the few.

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