Finland’s Ministry for Foreign Affairs has demanded a refund of 50,000 euros from the Finn Church Aid NGO over concerns that the funds granted to the organization were not used appropriately. The funding was provided by the ministry’s Peace Mediation Centre in 2021 to support the national reconciliation process in Somalia. However, after an internal audit by the NGO, it was found that the funds may not have been used in accordance with the government grant decision.
Finn Church Aid is Finland’s largest international aid organization, with over 70 years of experience in coordinating aid. The NGO was established in 1947 to coordinate international aid to Finland from the US and Sweden following World War II.
The Ministry of Foreign Affairs has launched an independent audit of Finn Church Aid’s operations to ensure that the organization has sufficient risk management processes in place.
The Ministry is also investigating Finn Church Aid’s investment wing in Somalia which lends small and medium enterprises in Somalia capital to expand their operations. Accusations have emerged on criteria on loans and repayment structures putting FCA Somalia in great audit spot.
The ministry has emphasized that it takes all cases of suspected misuse very seriously and will take appropriate action to address any problems identified. The funding granted by the ministry was intended to strengthen the broad-based participation of the Somali people in national consultations and prevent pre-election political violence. However, the ministry has been unable to verify that the funds were used for this purpose, leading to the demand for a refund.
