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South Africa's Finance Minister has advocated an aid transparency initiative focused on monitoring aid flow and how the aid is managed. He underlined the importance that the huge volumes of aid that flows into Africa are adequately monitored and tracked. The minister welcomed the support of Sweden to help return monies stashed in European banks.

A new approach in development aid could be fuelling corruption. Western countries are testing the "budget support model", whereby funds are given directly to the government in order to reduce poverty. A report claims that up to June 2002, government expenditure was not supported by the correct documentation.

Transparency International's 2008 Corruption Perceptions Index (CPI) highlights the fatal link between poverty, failed institutions and graft. But other notable backsliders in the 2008 CPI indicate that the strength of oversight mechanisms is also at risk among the wealthiest. In low-income countries, rampant corruption jeopardizes the global fight against poverty, threatening to derail the UN Millennium Development Goals (MDGs). According to TI's 2008 Global Corruption Report, unchecked levels of corruption would add US $50 billion (€35 billion) - or nearly half of annual global aid outlays – to the cost of achieving the MDG on water and sanitation.

The Uganda government was last evening left searching for alternative sources of funding following the withdrawal of support to the education sector by one of its key donors. The Dutch government announced it was withdrawing funding to a tune of nearly Shs50b (14 million Euro), citing concerns over persistent corruption, poor public financial management and poor standards.

Kenya is no longer a country of focus for aid from Canada, the country's new High Commissioner has said, due to massive graft. He cited the scandal surrounding the Sh103 million embezzled from the Free Primary Education programme.

Nepal's Education Minister has been removed from his post amid allegations of corruption. The bribery allegations against the Minister led to international donors suspending millions of dollars in funding for schools. He denies accepting bribes from more than 1,000 teachers to secure them jobs in the schools of their choice.

The global financial crisis has catalyzed increasing transparency and accountability regarding public finances, say aid experts, which has helped open up disclosures on aid-giving.

A senior US official has called for independent verification of Afghan government figures on the use of US education aid following claims by Afghan ministers that the previous government had provided data on US-funded school and higher education projects that were flawed, tempered and exaggerated, and had interfered with university entrance exams. These allegations suggest the existence of ghost schools and teachers that are being paid for with US aid money.