Vol. 538 No. 3
62 Mr. J. O'Keeffe asked the Minister for Foreign Affairs if he will respond to the recent reports in relation to the embezzlement by corrupt local officials of part of the Government's aid funds in Africa and the steps being taken to protect against these corrupt practices and if he will make a statement on the matter. [17922/01]
The reports, to which the Deputy is referring, relate to our programme in Kilosa, in Tanzania. The facts are these. Our Head of Mission at our Embassy in Dar-es-Salaam was advised that our monitoring and accounting systems were indicating that an amount of funds provided to our area based programme in Kilosa in Tanzania was not properly accounted for. He ordered an independent investigation which verified insufficient accounting for some procurements and tenders, the total of which could reach £50,000. I should mention that our total programme in Tanzania this year is £13.5 million.
On receipt of the results of the investigation, the Head of Mission went to Kilosa where he laid the information before a public session of the Kilosa District Council and demanded immediate action. His statement was picked up by the local media which presented it as the proper assertive approach for a donor friend of Tanzania to take. This was taken up in turn by the national media which took a similar line. This is the source of the information picked up in Ireland by a Sunday newspaper.
The current position is that six senior local officials have been suspended and a police investigation has been initiated with a view to bringing charges against those suspected of corruption. The responsible Tanzanian Government Minister is engaged on the matter and determined to see a full and thorough investigation. Our main focus is to seek to have the funds properly accounted for. If funds are indeed proven to be missing, we also have the option of offsetting such an amount against further assistance. The important point to make is that our oversight systems do work, even in an environment like Kilosa where poverty and weak governance are features. The Deputy will, I think, further appreciate that, in pursuing this matter in so public a manner, we are determined to demonstrate not only that these systems work but that they are seen to work. However, the reality of development aid is that the environment in which all aid programmes operate is one where the issues of good governance and responsible public administration are themselves development issues. It is a fact that weakness in these areas is always present where there is poverty.
Within Ireland Aid every effort is made to put in place systems to guard against malfeasance. For example, in the six priority countries in Africa, where the greater part of bilateral assistance is concentrated, the six missions, together with all of the accounts under their control, are subject to annual external audit by reputable international accounting firms. Additionally, where there are area based programmes like those in Kilosa and sector support programmes in the programmes in these priority countries, they too are subject to annual audit. There are qualified accounting staff in all the missions in the priority countries. In two of the countries where there are sizeable programmes there is a second accountant.
Overall it is important to note that appropriate monitoring and accountability mechanisms are in place. The issues of governance and accountability are central to our dialogue with our partner governments in Africa and where incidents of this kind occur, proper action is taken, lessons are learned and new precedents set. We work closely on all issues of development co-operation, including accountability, with other bilateral and multilateral donors.
I wish to make it clear that I am a strong supporter of Ireland's aid programme. I am also cognisant of the fact that the general public are major supporters and I want to see that support continuing. Does the Minister of State agree that, when problems arise, it is better to be transparent and open about them? Does she accept that it is better that the public be fully aware of the difficulties in Tanzania and the problems which have arisen in Ethiopia and in Uganda where a brother of the President seems to be looting the Congo? Does she agree that we, as aid donors to those countries, must take steps to ensure that our aid funds are not being siphoned off in any way and that precautions are put in place to ensure that our aid programme is not influenced or affected by the corruption which is everywhere – even the Government parties here had it – or at least that any effect will be absolutely minimal?
I thank Deputy O'Keeffe for his support of the Ireland Aid programme. I fully agree that we should be up front. The facts of this case demonstrate that it was our own internal audit, evaluation and monitoring systems which highlighted this alleged misappropriation of funds and have resulted in the dismissal of officials and a thorough investigation by the local Tanzanian authorities. As the Deputy has indicated, bad governance is not an issue which is peculiar to developing countries. Clearly, we do not dismiss out of hand concerns about governance in developing countries. It is part of the development agenda to work with those governments to build up their own capacity to govern in an efficient and accountable manner.
Within Ireland Aid, every effort is made to put in place systems to guard against malfeasance in respect of public moneys. For example, in the six priority countries in Africa where the greater part of our bilateral assistance is concentrated, the six missions, together with all the accounts under their control, are subject to annual external audit by reputable international accounting firms. Additionally, where there are area based programmes like those in Kilosa and sector support programmes in the country programmes in these priority countries, they too are subject to annual audit. There are qualified accounting staff in all of the missions in the priority countries. In two of the countries where there are sizeable programmes, there is a second accountant. Overall it is important to note that our internal mechanisms, both in the Department of Foreign Affairs in Dublin and at embassy level, provide appropriate monitoring and accountability for taxpayers' money.
I thank the Minister of State for her response. Could I now look to the future to ensure that we will, I hope, have fewer problems? Are there any new systems or approaches which can be put in place to try and ensure that corrupt local politicians or corrupt local officials will not get their hands on aid funds? Is there a more direct way to ensure the funds flow directly to the people who really need them in so far as we can target the 12 million children under the age of five who die every year because of malnutrition? Has the Minister of State any ideas on a better way of aid delivery to try to avoid the snags and snares of corruption? Is there anything we can learn from other countries that have established aid programmes? I am thinking, in particular, of the Scandinavians who have a great track record in this regard. Is there anything we can learn from them which would be useful to us in the development of our aid programme?
The issues of governance, corruption and accountability are central to our ongoing dialogue with our partner countries in Africa and they are frequently discussed by development Ministers. At the last meeting of development Ministers, we had a thorough discussion on this in relation to Uganda, for example. I understand there is a question to the Minister for Foreign Affairs on Uganda where these issues have most recently arisen. In the context of the review of the overall programme, we will continue to put in place mechanisms commensurate with the expansion of the programme. The systems in place at the moment are under examination in the context of the review.
