Watchdog exposes how ministers misspend taxpayers’ money as foreign aid fails to help world’s poorest
The Independent Commission for Aid Impact hit out at UK ministers for 'tolerating weaknesses' in annual cash handouts programme
AID ministers are turning a blind eye to foreign governments potentially misspending millions in taxpayers cash direct handouts, an aid watchdog has warned.
The Independent Commission for Aid Impact has accused DFID of “tolerating weaknesses” in a controversial £201 million scheme that transfers cash payments directly the world’s poorest.
They have given an “Amber/Red warning” for how Ministers scrutinise British taxpayers cash sent to foreign governments to distribute to up to six million people.
The ICAI said the scheme does not have systems in place to “adequately monitor and assess the results” of the handouts in some countries.
The colour coded warning system points to: “Unsatisfactory achievement in most areas, with some positive elements.”
But they warn the distribution systems are “an area where improvements are required for UK aid to make a positive contribution.”
The report will cause acute embarrassment in No10, who said last week that “robust systems in place to protect” the public purse.
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Theresa May defended handing British taxpayers’ cash directly to the world’s needy after accusations she is “exporting the dole”.
The Department for International Development spent an average of £201 million per year on these hand outs equalling 2 per cent of their total expenditure.
Payments range from as £6 a month for participating households in Uganda to £19 for a family of five in Zimbabwe.
But the oversight body raised the alarm on how we are providing countries receiving the gifts with technical assistance for distributing the money and monitoring how it is spent.
Wherever possible these handouts are distributed through national programmes run with help from foreign governments.
But the damning report reveals that relying on help to distribute the cash “means tolerating weaknesses in the design and delivery of programmes” — leaving it wide open to abuse.
The current set up “lacks a systematic approach to both financial and technical assistance, and does not adequately monitor and assess the results of its system-building efforts.”
The embarrassing revelation came just hours after Aid Secretary Priti Patel told MPs that “like all Conservatives, I want to focus on making sure that every penny of taxpayers’ money goes to helping the world’s poorest.”
And the ICAI warned that DFID had also missed targets for improving school attendance and said that work on health, nutrition and women’s empowerment could be improved.
But extraordinarily they said Britain should hike the payments, despite the flawed systems.
While finding “unsatisfactory achievement” in how the cash is used by other countries, the watchdog has given a green light for the government to “up-scale” the handouts meaning even more taxpayers money could be spent in this way.
But Tory backbencher Nigel Evans called the damning report a “wake up call”.
“This is meant to be money for the needy not the greedy,” he said.
The Ribble Valley MP added: “Unless you have a rigorous system in place you will be defrauded and that is exactly what is happening.
“It would appear we don’t anywhere near the sort of tough systems we need in place and it is costing the British taxpayer millions.”
And he warned: “Ministers need to get a grip, and get a grip now.”
Last night Labour MP Stephen Twigg, who heads up the International Development Committee, warned that “DFID should carefully consider its options for scaling up to ensure that it is achieving maximum value for money.”
A Department for International Development spokesperson said: “Cash transfers get aid to those who need it when they need it, while achieving value for taxpayers’ money – and this independent report recognises that.”