Denmark halts three ODA projects over fraud allegations

June 05, 2012 | 08:33
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Denmark decided to halt three out of four of its ODA climate change study projects in Vietnam due to misappropriation of funds.

John Nielsen, the Danish Ambassador to Vietnam

The Danish Embassy issued a press release on June 1 which claimed that around DKK3.3 million ($552,158) was misused.

According to the agency, after doubts were raised concerning certain projects, the Danish Embassy in Hanoi hired an international auditing agency to inspect the financial conditions of four Danish-funded projects.

The initial results revealed several misconducts, including the use of consultancy services for other purposes and overspending on materials; which caused fund deficits.

As a result, they have decided to stop funding three out of four projects, and are in the process of carrying out further investigations of the fourth.

John Nielsen, the Danish Ambassador to Vietnam, said, “The Minister for Development Cooperation of Denmark said that the misuse of ODA funding is unacceptable. We have a clear and consistent policy on for all such cases."

According to Nielsen, the Danish side has been working with the Vietnamese Government and other concerned parities to find the best solution.

“We cannot comment on the case before the two sides have carefully considered the situation and come to the final conclusion,” he added.

The Copenhagen Post reported on the halt of the three projects in Vietnam after Price Waterhouse Coopers released preliminary results of their audit.

All these projects were funded by the Danish International Development Agency (DANIDA).


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