September 19, 2016
Embezzlement and misuse of donor funds
Funds from international donors are often at the highest risk of misappropriation. The funds may travel through a number of international and national organisations, and the funders are geographically distant from where the funds will be used. As a result it can be difficult to track and audit funds and resources.
Similar to the embezzlement and misuse of national funds, high-ranking officials and politicians may attempt to steal large quantities of the funds.
Donor funding is mainly focused on low-and middle-income countries and record keeping in these regions can be poor, making it difficult to track funds. Added to this, funds from donors often have a short time period to be spent, especially after natural or human disasters. In these circumstances normal controls and oversight of budgets may be compromised due to the urgency of the situation.