Brazil to revamp Amazon Fund after finding irregularities: Minister

Brazil to revamp Amazon Fund after finding irregularities: Minister

FILE PHOTO: Brazil's Environment Minister Ricardo Salles gestures during a meeting with a Sena
Brazil's Environment Minister Ricardo Salles gestures during a meeting with a Senate committee in Brasilia, Brazil. (Photo: REUTERS/Ueslei Marcelino)

SAO PAULO: Brazil will overhaul rules for selecting projects to reduce deforestation supported by the Amazon Fund, which is financed by Norway and Germany, after discovering irregularities in spending, Environment Minister Ricardo Salles said on Friday (May 17).

Salles said non-governmental organizations (NGOs) had failed to account for the way they use money disbursed to them from the US$1.28 billion fund administered by Brazil's state development bank BNDES.

Salles, a climate change skeptic, told reporters he and BNDES had agreed that the governance and rules for awards must be changed to better direct spending.

Salles said 82 per cent of the awards that the ministry had inspected were granted without a bidding process and that he was recommending no new funding of projects for now.

The fund supports Brazil's environmental agency Ibama in its efforts to go after illegal loggers in the world largest rainforest, which scientists see as vital to fight climate change because it absorbs vast amounts of carbon dioxide.

At the local community level, the fund helps develop sustainable livelihoods on forest products so they do not need to cut down trees.

Members of Brazil's new right-wing government believe climate change is a leftist conspiracy aimed at hindering the country's development and they accuse foreign NGO's of meddling in its affairs.

President Jair Bolsonaro has said he wants to open the Amazon region to commercial agriculture and mining.

After he took office in January, his government withdrew its offer to host the 2019 United Nations conference on climate change, maintaining that Brazil's sovereignty over the Amazon was at stake.

Norway has donated US$1.2 billion to the fund, and Germany US$68 million, with Brazil's state-run oil company contributing US$7.7 million. More than 60 per cent of awards have gone to environmental projects by federal, state and municipal governments.

Its annual funding is linked to Brazil's success in reducing Amazon deforestation in the prior year. Norway has cut its support for the fund in the past when deforestation spiked.

Announcing a US$70 million donation for 2017 in December, the Norwegian government said it was concerned over a new surge in destruction of the Amazon rainforest.

Source: Reuters/nh

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