Aid chiefs in line to dish out up to £6bn of taxpayers’ cash can’t show how it helps world’s neediest
Watchdog says it's a 'significant challeng' for them to prove how they help poor across the globe
AID chiefs in line to give away up to £6billion cannot show how they help the world’s poor.
An independent watchdog said the CDC Group struggled to prove their handouts made a “lasting difference”.
It is the latest question mark over how Britain’s £12billion of foreign aid is dished out. CDC, the Government’s private investment arm, gets £1.5billion of it and could see that quadrupled.
Ministers have moved to allow the extra cash to be funnelled through CDC in a draft Bill.
Department for International Development bosses say it has been a “great success story”.
But the National Audit Office said yesterday the equity group had to show value for money. NAO head Sir Amyas Morse said the DfID had demanded that CDC address many of its weaknesses.
He added: “It remains a significant challenge for CDC to show its objective of creating and making a lasting difference to people’s lives in some of the world’s poorest places.”
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CDC was set up in 1948 to invest in agriculture in British colonies. It is a public limited company with the Government its sole shareholder.
Leading charities questioned its spending two years ago after it poured millions into luxury building projects in poor countries.
Officials invested more than £154million in 44 property and construction companies across Latin America, Africa and Asia. Up to 20 were builders of gated communities, luxury apartments, shopping centres and hotels.
A DfID spokesperson said: “The NAO itself identifies that CDC has ‘made important, positive changes’, exceeded its performance targets and highlights DfID’s strong oversight and role in directing CDC to address historic issues.
“DfID will continue to work to ensure CDC is laser focused in delivering investments that combat
poverty in a clear and transparent manner.
“This Bill is an essential step that will ensure CDC can continue to make pioneering investments in the hardest places so people can lift themselves out of poverty and leave aid dependency behind, while ensuring value for money for UK taxpayers.”
A CDC spokesman said the central focus of their work was helping to create jobs in Africa and South Asia.