Aussie aid money stolen in Pakistan

Australian aid money was among an estimated $US4 million ($A3.84 million) stolen from a UNICEF schools program in Pakistan.

The federal government on Friday issued a joint statement about the fraud with the fellow donor governments of Canada, Italy, Japan, New Zealand, the United States and the European Commission.

They said the UN’s children fund had confirmed to them that an estimated $US4 million ($A3.84 million) of funds was “misappropriated” from a $US6.2 million ($A5.96 million) school rehabilitation project in northwestern Pakistan in 2009-10.

UNICEF first discovered irregularities via its internal financial oversight system in 2010 and alerted donors in Pakistan to the potential loss.

The agency confirmed the fraud earlier this year.

The governments said such fraud was effectively stealing money from some of the world’s poorest people.

“As donors, we do not tolerate fraud and urge partners to take swift and decisive action when any fraud is detected,” their statement says.

The governments commend UNICEF for their action in uncovering and reporting on the matter.

They also welcome UNICEF’s measures to improve its monitoring and risk management systems.

They confirm they will continue to work with UNICEF.

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