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  UK aid ‘open to corruption abroad’, warns MP
 

Budget support is aid provided directly into an overseas government’s budget and spent using the partner government’s financial systems.

South Norfolk MP Richard Bacon has said that the Department for International Development needs to work harder to protect UK aid payments from corruption overseas.

Mr Bacon said: “Last year, the UK paid a total of £461 million straight to the governments of 13 developing countries through budget support.  The governments of those countries then use their share of the money to improve the lives of their citizens.  At least, that’s the idea”.

Budget support is aid provided
directly into an overseas
 government’s budget and spent
using the partner government’s
financial systems.


“However, DfID has not estimated the risk that corruption poses to budget support payments.  This means it is impossible for the Department to say how much of the £461 million was likely to have been lost or misused”.

“This is not good enough.  DfID needs to work much harder to protect aid given through budget support from corruption”. 

Mr Bacon was speaking as the Commons public accounts committee published its report on the budget support provided by the Department for International Development. 

Budget support is aid provided directly into an overseas government’s budget and spent using the partner government’s financial systems. In 2006–07, DfID spent £461 million on budget support to 13 countries. However, the report finds that DfID rarely estimates the risks of corruption or waste of UK funds and has not estimated how much funding through developing governments is wasted or used for corrupt purposes.

The 13 countries are: Ethiopia, Ghana, India, Malawi, Mozambique, Nepal, Pakistan, Rwanda, Sierra Leone, Tanzania, Uganda, Vietnam and Zambia. 

24 June 2008