Climate funding unprecedented opportunity for corruption, warns Transparency

Climate funding presents unprecedented opportunities for corruption as large sums of money flow through new channels from donor nations, Transparency Maldives (TM) has warned.

Over US$130 billion in worldwide funding for climate change adaption and mitigation projects is predicted to flow into the highly complex aid sector, said TM Project Coordinator Maurifa Hassan, during the local launch of Transparency International’s Global Corruption Report focusing on climate change.

“Those most affected by climate change are those most marginalised,” said Hassan during the launch at Traders Hotel. “Rules of engagement” set by donor nations were “diverse and complicated”, and directing funding to where it was needed most would require strengthening transparency and governance practices.

Already, she said, “where carbon markets have been introduced, the rules tend to be set by the market leaders.”

Speaking at the launch, Finance Minister Ahmed Inaz emphasised the importance of ensuring aid investment and expenditure was transparent.

“Many islands require immediate and expensive engineering,” he said. “Adaption is costly, and sea walls do not come cheap. Male’s sea wall cost US$17 million, and without the support of Japan we would not have been able to build it.”

Investment in renewable energy was also central to the country breaking its addiction to imported oil, he noted.

“However, large amounts of international funds have gone into reports produced by foreign consultants, which then sit on the shelves in various ministries,” Inaz said. “That is also a form of corruption – the money is not going where it is needed.”

‘Climate Champion’ Hamza Khaleel from the Commonwealth’s Youth Program observed that accountability for funding among local bodies was “almost non-existent.”

“The people are the eventual victims of half-finished projects, and this can have a real impact on democracy,” he said.

“The government must lead by example, as the private sector takes its lead from the government.”

Transparency International’s report on climate finance corruption emphasised “better governance” as the solution, and said that “it will be crucial to ensure that the mitigation strategies and adaptation solutions that emerge at local, national and international levels embrace participation, accountability and integrity.”

“Left unchallenged, corruption ruins lives, destroys livelihoods and thwarts attempts at social and economic justice. The same risks apply to climate change,” the report said.


13 thoughts on “Climate funding unprecedented opportunity for corruption, warns Transparency”

  1. How about setting up an apparatus to make sure that the money is used in the most effective ways, and not harbors and concrete sea walls? What plans are going to fall within the definitions of "climate mitigation methods" when this money is going to be put to use by politically appointed bodies?

  2. Corruption was rampant in the Maldives even in the immediate aftermath of the tsunami in 04, with the aid the flowed in.

    Good governance has not appeared in the face of death and disaster, or (as some may say)the wrath of God even. Highly unlikely that this will happen for the "idea" that seas may take us.

  3. The whole climate change fiasco is about as realistic as the IDB launching a Qiyaamai fund.

    The whole purpose of the climate change scam is to funnel funds through various channels, break ties and alliances and forge new ones.

  4. They say ask the local people what they want to use the funds for. The locals know they need protection from erosion and the proven model so far is hard walls. So they say concrete walls. The fund managers say no thats not good enough do an assessment using consultants suggested by us. The intenational consultants come and ask the locals for detailed information writes it in report in a format that the funders accept and there goes another project that does not deliver what the locals want. Meanwhile the national negotiaters are too busy travelling to international climate change conferences to understand and negotiate on behalf of their people.

  5. these reports inaz is suggesting is done usually by organizations like the UN which hires consultants who sit on their offices with fat salaries from the aid budget allocated to maldives, and then produces reports which are not usable and hence sit on shelves. they need to understand the country more before making these kind of reports. and in many cases there are local consultants who could do better and more practical solutions for half the price. so in a way this is due to corruption issues in these agencies themselves,

  6. Thanks to TM for the early warning.
    The USD 130 million would produce corruption.

    Why would 2 permeant secretaries go a meeting if there is no such motive.

    Monitoring the people who went to South Africa for the discussions is a good place to start from..

  7. Corruption have so far not been stopped to any knowable reasonable level nor has good governance been cultured and implemented as such.

    A good indicator is the post tsunami flood of aid, where corruption was rampant to say the least. Good governance has not come about in the face of disaster, in the knowledge of its own lack, the fear of God and would perhaps not come just in time due to the "idea" that the sea would envelope us.

  8. damn, i had to rewrite my comment since the site froze on me, now its there twice.

  9. Strategic Action Plan for DRR and Climate Change - a document made by team sitting in the resorts now endorsed by Aslam,Ministry of Environment
    close to 600,000 dollars any news of whats happening

  10. Seems like there are plenty of anecdotes about corruption right here in the comments. LOL

    Good governance my ass

  11. Corruption is maintained and supported by all governments in that they implement over complicated rules and regulations that are difficult to implement and ensure they are working as they should, The answer is simple , do away with complicated financial systems and regulations and move a s simplistic way of taxation ,especially on the carbon tax.
    I suggest a natural resource tax that would replace all existing taxes and would be based on the resources environmental impact.
    For example a carbon tax would be collected at the well head or import entry point and this tax would be set a level to replace all existing taxes, so collection taxes from individuals and companies would no longer need to happen and so avoid all the high costs of accountants and tax collectors who at present taking such a big share of the total tax revenue.
    This would mean a lot lower tax take but in the first place it could be spent on the transition phase and then on climate change projects.

  12. climate champions and corporate NGOs some with political affiliations some with international links warning us without giving any evidence just media hype to get attention for political purposes while the real people/agencies involved are not even interviewed


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