Record high in foreign aid fraud, review shows

THE level of fraud in Australia's $4.8 billion foreign aid program has reached a record 191 cases - nearly eight times the level of six years ago.

As a high-level review to be released today gives the green light to lifting annual aid spending to $9 billion, it can be revealed 63 staff involved in the aid program have been dismissed for corruption.

Foreign Minister Kevin Rudd will today declare Australia's aid program in good shape and able to cope with a massive increase in funding to help some of the world's poorest countries.

He will also announce an effective end to bilateral aid to China, with assistance to be cut from $22.5 million to just $4 million by 2012/13.

The Foreign Minister will use the review headed by former Olympics' boss Sandy Hollway as the impetus for key changes to aid delivery.

"Our aid program is making a real difference to people's lives," Mr Rudd said.

Opposition foreign affairs spokeswoman Julie Bishop said the government had to maintain "strict control over management of the foreign aid program to prevent corruption". AusAID is battling a record number of alleged fraud cases across 27 countries and involving millions of dollars.

aap 6 Jul 2011

This has been a well known and documented fact within the government cricles for quite some time.

The government has 'allowed' this kind of practice to flourish, as billions ($4.8 billion) of dollars of tax payers money is being wasted.

The government naturally covers this up, and makes up excuses, that it is in control, when clearly it is NOT.

One of the primary concerns is that this type of market (charities), supports many a government position, will never cease to exist, even though it has fraudulent transactions taking place all the time.