Tsunami Aid Investigation

Massive Fraud Hits Tsunami Aid
The Times (London)
April 16, 2006

The 2004 Indian Ocean tsunami sparked an outpouring of charitable giving to reestablish services in south and southeast Asia. Now, those funds are stalled while Oxfam and Save the Children investigate corruption claims. These two international aid organizations, based in the U.K., believe contractors hired to build new housing structures in Indonesia have misused funds and completed shoddy structures.

A preliminary investigation by an anticorruption organization reveals that 30-40% of aid funds may have been tainted. Other financial and governmental institutions, including the World Bank, have joined in condemning the small number of entrepreneurs who control these construction firms.

While the investigation continues, many of the projects commenced by these contractors will have to be destroyed and rebuilt properly. Prior to these fraud claims, the total cost of recovery was estimated at $5 billion USD.