Five million euros worth of Finnish development aid funds have been invested by state-owned development aid company Finnfund in the forest fund Dasos Timberland Fund I, which a report by NGO Finnwatch claims can be involved in aggressive tax planning or even illegal tax evasion. Minister for Development Kai Mykkänen says the demands for Finnfund have already been tightened but that no guidelines can remove all risk of misuse of development aid funds. He points out that misuse of funds unfortunately happens when acting in countries that often are fragile and corrupt, irrespective of the form of development aid. According to Mr Mykkänen, it is important to react to every instance of suspected misuse but introducing a preventive zero tolerance would not be productive.
Media: Hufvudstadsbladet (E-edition, PDF)
Main source: Minister for Development Kai Mykkänen