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Shocked by reports based on findings by the Ministry of Human Resources Development, Andrew Mitchell, Secretary of State for International Development, said: "These are shocking allegations.
"I have launched an immediate inquiry to ensure British aid money has not been misused. The new British Government will have a zero tolerance policy to corruption".
Reports in the British media about the corruption mentioned a figure of 340 million pounds in aid to a schools project for children under the age of 14.
One audit of money earmarked for the Sarva Shiksha Abhiyan project found that 70 million pounds had reportedly vanished.
Mitchell said: "When I took up this job a month ago I made a pledge to taxpayers that they must know that for every pound of their money, we will get 100 pence of value".
"Now I'm reviewing every single one of the Department for International Development's country programmes to ensure we are giving aid to where it's most needed - to help the world's poorest people".
'The News of the World' quoted a report by India's Auditor General that almost 14 million pounds had been spent on items and luxuries that had nothing to do with schools.
The newspaper's investigation said: "Cash meant for kids' education has been blown on luxuries.
"We discovered that officials throughout the country had used it to buy new cars and in one instance aid cash was spent on four luxury beds costing a total of 17,754 pounds as well as a 3,803 pounds computer".
Large amounts of money were shown to have been spent on schools that reportedly did not exist, while in some cases air conditioners, faxes, photocopiers and 7,531 colour television sets were reportedly bought despite there being no electricity supplies.
The report said that 150,000 pounds was paid into a mystery bank account with no reason given.
It quoted a report by the Institute of Public Auditors of India that in Bihar children were reportedly being taught in open fields, because money had not been passed on for classroom repairs.
"In Muzzaffarpur they found that only 400,000 pounds out of an allocated 1.1 million had gone to schools," it said.
India is one of the largest recipients of British foreign aid. One woman involved in the widespread fraud has been accused of siphoning off up to 6 million pounds from the funds, even using 44,000 pounds of it to make a movie directed by her son.
"Auditors checking individual state accounts found sums up to 4.8 million pounds missing from the books," the report said.
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should realise that the so called indian educated society the worst manipulators and corruped society in the world. no one can help indians. charity is a big business in india. all happening because of the corrupted government.
I am surprised at this Brit's shock....do they not know that this is how Indians operate. What was he thinking giving aid to India.
When some one takes money or a thing which does not belong to him it is called a theft. A person stealing money meant for others is a thief. Stealing money meant for needy ones is a grevious theft. But across the world, we are gloryfying these thefts by a word 'corruption' and the thieves are called leaders and administrators. Thieves are to be jailed in ordinary jails, the term of jail proportionate to amount stolen. The rampant stealing in all spheres of Indian life, has given an image of a thief to almost every Indian. We ought to change this image soon.
once they find out,they should be put away in jail for a long time.these politicians are crooks and they steel from their own children
i am proud that our own Institute of Public Auditors of India found out about this fraud. Hopefully they will do more good work!
I would request all aid and charity work should be stop by developed countries. Indian politicians are goondas and support criminals. Politicans are printing notes to put them into the account in swiss. I would request the world bank to ban switzerland from allowing Indians to open a bank account if he is a politicans. Please developed countries stop giving aid to india because all the money is not reaching the ordinary public
Best way of removing corruption is privatisation. If you want to donate money then you can provide it to Human Resource ministry. But India is spending a trillion dollars to upgrade its airports, so is anybody need to help India?
It is a well known fact that not only the politicians but also the general public are correct. I think Indians have a unique gene that not many westerners have that is responsible for "corruption". We should fund a research project to identify and eliminate this "corrupt gene". We are the only people in the whole world who preach about "morels" without following what we preach. Even after attaining Independence from the Britishers we are still taking aid to educated our rural poor and yet feel proud that we have maximum number of richest people in the world. We are against "English" language yet we have no problem in taking their money. What a great people we are.
Why is Mitchell surprised or distressed? It is common knowledge that funds for welfare schemes are siphoned off by netas, Govt. servants and middlemen. Not more than 20% of any funds reach the intended beneficiaries.
We are a nation of the damned. As bad or worse than even Africa. Millions upon millions in our own finances are laid waste every year and now we even siphon off tax payers money from other countries given into our begging bowl as aid. If the government cannot control this abuse of well meaning aid to our poor, are they fit to rule. What use are Man Mohan Singh's degrees and experience? We are corrupt beggars and always will be. The UK should stop this aid immediately and let the country rot. I blame the poor for whom this aid is meant, also. They elect their government just by being bribed an equivalent of 50 pence before elections. I have mailed this article to scores of my friends in the UK and hope this undeserved charity is stopped
DON'T BLAME INDIA IF YOU STIPIDLY DONATE ANY MONEY, AND THEN COMPLAIN ABOUT MISUSE (MISUSE IS A POLITE WORD, REAL WORLD IS STOLEN BY ALL WHO HAD ACCESS). THIS IS HISTORIC FOR INDIA. MILLIONS OF RUPEES AND SUPPLIES WERE SENT TO MODI FOR DISTRIBUTION TO EARTHQUAKE VICTIMS. AFTER 2 YEARS THERE WERE REPORTS IN THE NEWS PAPERS THAT THE SWIDISH TENTS WERE FOR SALE FROM MODI'S MINISTERS WAREHOUSES.
UK IS A FOOL. KNOWING INDIAN POLITICIANS, THEY HAVE GIVEN THIS MUCH AMOUNT. IN FACT I NEVER KNEW AS A CITIZON OF INDIA THAT THERE IS SOMETHING CALLED SARVA SIKSHA ABHIYAN AND IT WAS FUNDED BY uk. THE MORAL IS BY GIVING MONEY TO FILTHY CORRUPT INDIAN GOVT, UK HAS INDIRECTLY HELPED CORRUPTION.!