BBC NEWS
Oxfam acts over Aceh aid misuse

UK-based charity Oxfam says 22 members of staff face disciplinary
action after an inquiry into alleged fraud in the Indonesian province
of Aceh.

The investigation found evidence of losses of $22,000 (£11,800) at its
offices in the province, Oxfam said.

In March, Oxfam suspended some of its operations in Aceh pending the
inquiry's outcome. It has now resumed full relief work there, it said.

Around 130,000 people died in Aceh when the tsunami hit on 26 
December 2004.

Another 500,000 were left homeless by the disaster

The seven-week investigation, which focussed on allegations of fraud
at two of Oxfam's offices in Aceh, found evidence money had gone
missing.

"The fraudulent activities centred on discrepancies between amounts
paid to suppliers for goods and the quantity of goods delivered," the
charity said.

Of the missing money, $20,000 (£10,700) had been recovered, the 
charity said.

'Gross misconduct'

The investigation, while praising Oxfam's procedures, found 
that "weak management and monitoring systems in certain areas, 
aggravated by high staff turnover and difficulties with recruitment,
created the possibility for fraud to occur".

It recommended action against 22 staff members, of whom 10 face 
possible dismissal for "gross misconduct relating to fraudulent 
activities".

Oxfam said that the amount of money involved represented a "tiny
proportion" of the tsunami relief programme in Aceh, but said it hoped
the probe showed Oxfam's commitment to high standards of
accountability.

Barbara Stocking, director of Oxfam Great Britain, said the charity
took the issue very seriously and would remain vigilant in the future.

"The public who gave so generously should be reassured that the money
they donated continues to help change the lives of people who were so
devastated by the tsunami," she said in a statement.

In December 2005, the charity's "Tsunami Accountability Report" 
showed the aid effort following the disaster was Oxfam 
International's largest-ever relief operation.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/asia-pacific/4977328.stm

Published: 2006/05/05 14:15:29 GMT

© BBC MMVI



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