Dáil Éireann Debate, Tuesday - 27 November 2012
178. Deputy Simon Harris asked the Tánaiste and Minister for Foreign Affairs and Trade when he expects the €4 million in overseas aid which was misappropriated in Uganda to be returned to the Irish taxpayer; and if he will make a statement on the matter. [52479/12]
View answer179. Deputy Simon Harris asked the Tánaiste and Minister for Foreign Affairs and Trade his views on whether that the misappropriation of overseas aid from Ireland which occurred in Uganda could not happen again and has not happened in other countries to which Ireland provides overseas aid; and if he will make a statement on the matter. [52480/12]
View answerI propose to take Questions Nos. 178 and 179 together.
I am deeply concerned about the recent misappropriation of €4 million of Irish development funding in Uganda. Ireland has no tolerance for fraud or any other form of financial irregularity in relation to our development programme. I have suspended approximately €16 million of Irish development assistance which was due to be channelled through the Government of Uganda systems in 2012. I initiated an immediate investigation into the misappropriation of funds by the Office of the Prime Minister which has been undertaken by a team from the Evaluation and Audit Unit of my Department. The team’s report which I have now published found that this fraud was very sophisticated and well thought out involving a high level of collusion at a senior level and that the level of collusion was exceptional and could not reasonably or normally have been anticipated. I have strongly emphasised that Irish funding has to be repaid by the Uganda Government and that all necessary actions be taken by the Ugandan authorities to pursue those guilty of this crime.
Our Ambassador in Kampala and the Director General of Irish Aid met with the Prime Minister, Minister for Foreign Affairs and the Minister for Finance and Economic Development of Uganda to underline my deep concerns and to insist that the misappropriated funds be restored by the Ugandan authorities. The Government of Uganda has expressed their own deep concern at the impact of this corruption scandal on Uganda’s international reputation and has taken some concrete actions in response. The Ugandan Government have since confirmed that: all Irish Aid misappropriated funds will be reimbursed; that the officials against whom financial impropriety has been established will be fully prosecuted; and that measures will be undertaken to tighten their internal controls.
I welcome this commitment and have directed our Ambassador to work with the Ugandan authorities to ensure that the misappropriated funds are refunded to Ireland. Discussions are underway with the Ugandan Minister for Finance and Economic Development and with the other development partners affected by this fraud, namely Denmark, Norway and Sweden in this regard. Our funding remains suspended until this issue is fully resolved.
Ireland’s aid programme is strongly focused on the poorest people and communities in sub-Saharan Africa and we have strong systems in place for the oversight and monitoring of our aid funding. All of our aid programmes are regularly examined and evaluated to ensure we achieve effectiveness and value for money. This is done through: auditors based in our Embassies; the evaluation and audit team at headquarters; international accountancy firms whom we commission to carry out audits; the national audit offices of our partner Governments; and my Department’s Audit Committee - which provides an independent appraisal of Irish Aid’s audit and evaluation and also meets with the Comptroller and Auditor General and publishes an annual report on its work. However, it is clear that notwithstanding all these ‘checks and balances’ that aid programmes through Governments and other channels in developing countries can be very challenging. We are currently examining our systems in all Programme Countries with a view to ensuring that they are fit for purpose and that there are no issues in relation to fraud or malfeasance.
I am committed to ensuring that we learn from this to strengthen our systems of risk identification, management, monitoring and audit in the future to minimise the potential for the misuse of funds.
