What happened: NCA's head office received notification of embezzlement from our office in Somalia in 2021. After external reviews, Norad confirmed that 4.7 million of their funds have been lost in the fraud, and has claimed this amount back. KN repaid this amount to Norad in 2023. There have also been other funds that have gone into the project, where significant funds have been lost.
What we did: As soon as our Head Office was alerted, an investigation was initiated. The case was complex, and an external auditing firm was engaged to do the investigation. As a result, various measures were implemented, organizational changes were made, including improvement in financial and risk management. NCA has repaid the full amount embezzled to Norad.
What we learned: Norwegian Church Aid has absolute zero tolerance for corruption and maintain strict and robust control procedures in our internal and external systems. In recent years, we have restructured the Somalia program, and we are now operating closer to the projects and programs by being fully based in Somalia. Increased proximity means increased control. We have also strengthened our procedures regarding early warning, concerning both employees and partners. For example, recent assessment reports from in-country UN agencies confirm that NCA internal control systems in Somalia are of a good standard.