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« Lax Internal Controls at Charity Enabled Lynchburg Mayor's Fraud | Main | Russell Sage Foundation Helps Behavioral Economics Gain Currency »

Oxfam Terminates Some Aceh Staff for $22,000 Diversion

Charity moves decisively on small irregularities and tries to reassure the displaced about the pace of reconstruction. 

In March we pointed out the differences between the coverage of tsunami reconstruction in the US and overseas (Indonesia Irregularities: Jakarta & New York Views).  For this week's follow up story Stephanie Strom in the New York Times offered an uncomplicated version of errors discovered, audited, $22,000 found missing, $20,000 returned, and personnel dismissed, with a quote from an Oxfam America representative. 

The Reuters story has a dateline of Banda Aceh and provides more detail from local spokeperson Jan Thayrun.  Some of the staff were fired outright, but others face employment termination (no doubt the two different statuses have different procedures and post-employment fiscal consequences).  All of these were local staff.  But seven locals were also disciplined for violation of procedure and five international staff are also facing unspecified sanctions.  In a difficult situation like that in Aceh,these distinctions among types of workers are needed to provide a context.

Additional background is available in a story in the Jakarta Post last month, in which residents made angry complaints to the media about delays in reconstruction.  There are still about 120,000 in temporary shelter.  Eventually, the Aceh-Nias Rehabilitation and Reconstruction Agency, a government body, stepped in to explain to the residents that the delays at this point were due to legal issues and land disputes.  The fact that a body associated with the government is encouraging cooperation with an international NGO represents an improvement.

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