Sweden is demanding that the Ministry of Education in Mozambique refunds SEK 3.5 million in misused bilateral aid funds, but so far the Ministry has not responded to the Swedish claim. Several audits highlight weak financial control and a risk of fraud in the Ministry.

In the donor community, the Swedes have a tough-guy image.

The Norwegian Embassy in Kabul is working closely with the embassies of the Netherlands and Belgium to pressure the Afghan government to pursue the investigation into the killings of five Médicins Sans Frontières staff.

In a recent report on Denmark’s efforts to combat terrorism, the Danish government reiterates the integration of aid into security policy.

Eight southern African countries have agreed to establish a Zambezi Watercourse Commission to resolve conflicts over water use and rationalise the development of hydropower and irrigation projects in the basin.

In keeping with its White Paper on development policy presented early this year, the Finnish aid budget for 2005 will increase by EUR 54.4 million to EUR 600 million, or 0.39 per cent of GNI. This represents an 11 per cent increase in funds from 2004 to 2005.

Sida must cut SEK 1.2b this year

Following a recent decision by the Swedish government to freeze SEK 1.17 billion in aid spending during 2004, the Swedish International Development Cooperation Agency (Sida) will spend the month of August evaluating all possible options of where to make cuts.

Sweden and Denmark have been given key areas of responsibility in the new European Commission which will take over in November.