Mismanagement and meddling by Foreign Affairs Minister Murray McCully has disrupted the humanitarian work of dozens of New Zealand NGOs.
Marie McNicholas of Newsroom:
Aid agencies waiting on the first tranche from a new $21 million Sustainable Development Fund have learnt nearly 60 percent of the applications have been rejected.
Foreign Affairs Minister Murray McCully abruptly announced in April that the fund would replace existing community development funding, but a promised September decision on the new allocations has run nearly three months late.
Projects to have missed out are in some the world’s poorest countries from Africa through Asia and the Pacific.
The decision has dealt a blow to charities which have struggled all year to understand what was required under the new funding criteria, and several report bewilderment and shock at the outcome.
Caritas chief executive Mike Smith has described it as fiasco, with the agency now forced to lay off staff and cut funding to aid projects in the week before Christmas.
New Zealand, like most aid donors, channels some of its aid budget through NGOs. Because they rely on volunteers NGOs are extremely cost effective. And by matching funds raised from New Zealand donations this funding encourages Kiwis to give out of their own pockets. The former scheme had been running for a couple of decades, had stringent accountability standards, had been praised by successive evaluations and cited by the Auditor General as a model for funding NGOs.
Nevertheless Murray knows best, and he wanted a new scheme that was open to the private sector, and focused on his new mantra of private sector economic development. It has been a chapter of errors in the following months with successive delays.
We are almost halfway through the financial year and until a week ago, none of the budgeted $21 million had been disbursed. Last year at this point $18 million had been spent. This means aid projects relying on commitments of New Zealand funding have been left hanging.
McNicholas reports the NGOs saying Mr McCully’s ministry keeps changing the goal posts, that the process has been marred by delays, poor communication and breaches of the spirit of partnership through which such aid programmes have been delivered successfully for years.
Last month I am told the Minister threw a fit when the first batch of projects was sent up to his office. He threw them back at officials and threatened to have the running of the scheme contracted out.
It is a fiasco. And it is a direct result of the Minister’s meddling and micro-management of the half-billion dollar overseas aid programme.
This is the Minister who personally intervened to slash the funding to the aid NGOs’ umbrella organisation Council for International Development causing 10 staff to be laid off, and to the excellent Wellington-based Global Focus development education centre which is facing closure.
Read on for Marie McNicholas’ full story:
(more…)