Misuse of development cooperation funds is addressed
The risks involved in development cooperation are assessed, anticipated and monitored closely, but sometimes they materialise despite all precautions. The methods of risk management are constantly improved. When risks materialise, we learn from them and take steps to improve risk management accordingly.
Managing risks in development cooperation also involves handling cases of suspected misuse. All those engaged in development cooperation are obligated to report to the Foreign Ministry if they detect or suspect any misuse of funds. Suspicions of misuse are reported to the National Audit Office of Finland. Suspicions of an offence are reported to the police.
Misused funds are recovered in accordance with the internal recovery guidelines. The Foreign Ministry’s reporting service and the guidelines on handling cases of suspected misuse are based on Finland's international commitments to combat corruption and bribery.
The Ministry receives about 20 to 25 reports of suspected misuse of development cooperation funds every year. In most cases, the funds have not been deliberately misused, but shortcomings are found in bookkeeping and reporting. In the majority of these cases, the target of suspicion is able to provide sufficient additional information, the suspicion proves to be otherwise unfounded, or the funds are returned to the project or the Foreign Ministry without a clawback procedure.
In 2018–2022, the Ministry for Foreign Affairs made 17 recovery decisions, and an amount of EUR 173,162 was returned based on the decisions. In addition, some discretionary government grants were returned voluntarily. Finnish organisations returned all funds that they had been ordered to pay back. In 2023, the Ministry made new recovery decisions amounting to EUR 194,822. International legal actions may prolong the processing time of some cases by years.
Do you suspect misuse of funds?
If you suspect misuse of development cooperation funds, you can report your suspicions through our online service. Misuse may include bribery, embezzlement or other breach of conditions.