Information about embezzlement at Norwegian People's Aid Lebanon
Norwegian People’s Aid (NPA) has uncovered embezzlement at the organisation’s country office in Lebanon. The embezzlement was discovered by staff at the Head Office in Oslo in October. Investigations were initiated immediately, and the case was reported to the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime, Økokrim.
Two employees at the office in Beirut have been dismissed after an amount of 34 million kroner from Norwegian People’s Aid’s own funds was embezzled over a period of two years.
The embezzlement occurred through the use of forged documents and the abuse of positions and authorizations, which provided access to funds via local banks.
“What transpired is entirely unacceptable and should not have occurred. It should have been detected much earlier. Inadequate follow-up procedures and failures at multiple levels—both locally and at Head Office contributed to the persistence and magnitude of the embezzlement,” stated Secretary General Raymond Johansen of NPA.
When the embezzlement was discovered, NPA immediately initiated its own investigations and reported the case to Økokrim.
Økokrim has now concluded that Norwegian authorities do not have jurisdiction because the embezzlement was committed abroad by foreign nationals. Norwegian People’s Aid has, in parallel, initiated a legal process in Lebanon, and the case will be reported to the local police.
The Norwegian People’s Aid has also implemented a number of other measures. The organization has initiated an external investigation through PWC and made changes and tightened control routines both locally and at Head Office. In Lebanon, Norwegian People’s Aid will, among other things, replace both the local auditor and local banking partners.
Throughout the process, there has been ongoing dialogue between Norwegian People’s Aid Head Office, the organization’s board, donors, authorities, and other relevant stakeholders.
The funds that were embezzled came from Norwegian People’s Aid’s own equity. Therefore, the embezzlement has not affected the organization’s projects in Lebanon. Since the case was uncovered, no similar incidents have been reported at other country offices or in other areas where Norwegian People’s Aid operates.
“This is a very serious matter for NPA. We are now turning over every stone and will do everything we can to prevent this from happening again. This will be my most important task going forward,” says Johansen.
