Scandal, Embezzlement Accusations As Canada Sends Billions In Foreign Aid

So much corruption exists in the world of foreign aid to 3rd World nations that critics have coined a name for the phenomenon: Phantom Aid.

In 2020, the Trudeau government increased Canada’s official foreign development assistance by 7.7%. The 2021 federal budget announced an additional $1.4 billion for international assistance over the coming five years.

According to the Liberal government's own data, Canada's foreign aid budgets involve transferring funds to the World Bank, International Monetary Fund and African Development Bank.

From 2003 to 2020, the World Bank’s Doing Business Report(DBR) was generally seen as a trusted measure of how business is conducted around the globe. Yet, according to former World Bank senior manager Paul Cadario, there has been controversy about the DBR’s methodology since its inception. China is a major shareholder of the World Bank and therefore has considerable financial leverage over it.

"The DBR was discontinued this year , after data irregularities in its 2018 and 2020 editions suggested that China, as well as a few other autocracies, were given unfair bumps."

In other words, a discovery of corruption within the ranks. It is within this context that Cultural Action Party review Liberal government foreign aid policy.

In 2019, Canada’s budget for international assistance total was $6.2 billion dollars. Let us understand this in basic terms. Each year, our ruling government extracts approximately $6 Billion dollars from Canadian tax-payers, and ship the funds to the World Bank, International Monetary Fund, and the African Development Bank.

To place this in proper context, it is not as though governments previous to Trudeau's Liberals have not indulged in the practice. They certainly have.

What has not been exposed by mainstream media is alleged misappropriation of these billions. Let us take one recipient nation as an example: Afghanistan

In a 2017 article published by the Ottawa Citizen entitled  "Canada stands by aid to Afghanistan as World Bank investigates fraud allegations," the Trudeau government stood by their commitment to Afghanistan as the World Bank investigated whether aid funds earmarked for the country's largest education program were misappropriated.

So much of this form of accusation exists that critics developed a catch-phrase for it--  Phantom Aid.

Phantom aid is foreign aid that never reaches its intended recipients. It is aid that gets looted in ways such as tied aid and domestic refugee spending in donor countries. How much money did Justin Trudeau transfer from the pocket of Canadian tax-payers to Afghanistan in the year 2018? The official number is $254 Million big ones. 

Think this to be an outrage? Is our government funding a massive misappropriation of Canadian tax dollars-- while being fully aware of the circumstances?

According to World Population Review data, Afghanistan is the second least indebted nation on earth. They have no national deficit.

Out of approximately 200 nations on earth, Canada is number #27 in terms of national deficit. Next to uber-rich Brunei, Afghanistan is the world’s least indebted nation. So why isn't their government creating massive fiscal deficits like Canada to alleviate poverty and ill-health? The answer is surprisingly simple: because countries such as ours are paying out the money instead.

Let us check the status of some other "developing nations." According to the President of the Africa Policy Institute, Ethiopia has the fastest growing economy in the world. Canadian foreign aid policy delivered  $203 Million Dollars to Ethiopia in 2018.

Add to this $150 Million to Syria, $115 Million to Nigeria, $94 Million to India, $77 Million to Iraq. Add another two dozen 3rd World countries to the pot. Now, break out the calculator. This is no fantasy story. It is the reality of the foreign aid policy of the Liberal government of Canada.

Imagine if government directed even one-quarter of these funds toward domestic economic development. What would occur if half of these funds were properly invested in the Canadian economy?

How about a financial stimulus to drive Canada to the pinnacle of economic stability? Instead, our government is likely throwing billions of dollars in a global garbage can.

Have you heard the news? As recently reported by the National Post, Canada has sent nearly $800 Million in foreign aid to Jordan over the last 10 years. The Pandora Papers has discovered that the King of Jordan is funneling large parts of that Canadian aid into a worldwide portfolio of luxury real estate.

Canadian foreign aid is making Middle Eastern billionaires even richer. And neither the Liberal government, nor Canadian media, object to the fleecing of the Canadian tax-payer for this purpose.

And Justin Trudeau works for the benefit of whom?

-- Brad Salzberg, CAP Founder ( Est. 2016)