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European Commission officials are expected to hold talks with government representatives in Bulgaria over the alleged mismanagement of funds in the operational programme Science and Education for Smart Growth in the European Union budget. Bulgaria has received funding for 116 agreements totalling BGN324 million (€165 million or US$174 million), and of these, eight projects have reportedly been found to be mismanaged, with a total budget of BGN180 million (€92 million or US$97 million).

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.

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.

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.

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.