Denmark to end partnership in Indonesia due to alleged fraud

The attorney of the Danish Foreign Ministry’s business department announced in a report released 15 April 2020 that the Danida Business Partnership Programme Project in Indonesia would meet an early end due to proven fraud by the business partners in the programme.

An investigation by the attorney of the Danish Foreign Ministry concluded several circumstances that diverted from the basis of conditions and regulations upon which the partnership were agreed on. Such irregularities included the amount of funds withdrawn by the businesses in the partnerships didn’t meet and match sufficient documentation while the expenses of the companies didn’t match the amount of funds which they had withdrawn – which they should as the funds were meant to support the businesses in their endeavors in the Indonesian business market until the businesses could pay Danida back.

The amount of money the companies refunded to Danida likewise didn’t match the initial amount of money they had withdrawn.

Due to the severe irregularities that diverted from the agreement, the attorney of the Danish Foreign Ministry demanded on behalf of the Foreign Ministry of Denmark full repayment of the funds which the companies in the partnership had withdrawn. The repayment would amount to 2.152.744 DKK ($ 314.076,09).

The Danish company that had been a part of the Danida Business Partnership Programme Project in Indonesia denied the allegations of the Foreign Ministry of Denmark while also refusing to meet the demand of repayment.

The Danish Foreign Ministry announced on 15 April 2020 that It will initiate a case of arbitration against the companies in the partnership project.

The suspicion about fraud and irregularities in the Danish-Indonesian partnership was first submitted in April 2019.

Source: Danish Foreign Ministry 

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