Dáil Éireann Debate, Wednesday - 28 May 2014
10. Deputy Seán Kyne asked the Tánaiste and Minister for Foreign Affairs and Trade if, following the misappropriation of Irish Aid funds through corrupt means involving the Government of Uganda, he will outline the improvements and strengthening of safeguards to ensure Irish Aid funds reach the intended persons who are most in need; and if he will make a statement on the matter. [23218/14]
View answerI wish to ask the Minister of State about the improvements made and the safeguards put in place in the use of Irish funds abroad, particularly following the misappropriation discovered in Uganda in November 2012.
In October 2012 we suspended over €16 million of Ireland's development assistance to Uganda following the discovery of fraud in the Office of the Prime Minister. In response to our strong action the Government of Uganda has since refunded in full the €4 million of Irish Aid funds which were misappropriated. A full report on the fraud by the evaluation and audit unit of the Department of Foreign Affairs and Trade has been completed. The report concludes that adequate steps were taken to recover the funds involved and strengthen our own systems and redirect our aid through non-government channels. In addition, reviews of the internal controls and risk management systems in all Irish Aid partner countries, including Uganda, have been completed by the evaluation and audit unit. The recommendations made in these reviews are being implemented as a matter of priority.
The Irish Aid programme has a strong focus on development results. All of our programmes are robustly appraised. All partners, including NGO partners, are monitored regularly, with periodic field visits to ensure results are being achieved and that we are getting good value for money from our support. I am satisfied that our strong oversight of the aid programme ensures the valuable support provided by Ireland is reaching the intended targets and making a real contribution to improving the lives of some of the most vulnerable people in the world. I can confirm that independent evaluations have consistently confirmed this and that it remains an absolute priority to ensure Irish Aid continues to operate to the highest standards of accountability.
I know that the Minister of State shares the view that taxpayer's money must be spent on and used to deal with the neediest cases. It took a considerable period - up to February this year - for the report to be published. I wonder about this delay and whether there are similar reports on other countries in which Irish Aid moneys are being spent. I also have serious concerns about abuses in countries such as Uganda, including those relating to the LGBT community and the abuse of women and other minorities in certain other countries. We need to know that money is not being used to fund governments and regimes that engage in these abuses. Has any consideration been given to carrying out a review of the position in these countries?
All of that has happened. The evaluation and audit unit of the Department of Foreign Affairs and Trade has not only conducted an evaluation and examination of the position in Uganda but has also looked at the position in our other partner countries, eight of the nine of which are in Africa, while the ninth is Vietnam. As a result of the fraud uncovered, we have taken a very deliberate step to avoid engagement with the Ugandan Government. Part of the funding goes directly through the Irish Embassy to the various projects in Uganda in which we are engaged.
We are engaged very much in addressing education, HIV-Aids, gender-based violence, governance and livelihood projects. The funding goes to the poorest areas in the country either directly through the Irish Embassy in Uganda or through a number of trusted NGOs. Our NGOs are carefully monitored and evaluated. An NGO that receives more than €100,000 in funding from the Government must provide an annual report and give a clear account through a memorandum of understanding, which it has signed with Irish Aid in advance. There has to be transparency and accountability about the use of the money. Salaries in excess of €70,000 must be made public. That could be a good model of behaviour for all charitable organisations regarding how to deal in a transparent and accountable way with the salaries they give to their senior staff.
I welcome the change to providing the aid directly through the embassy or the NGOs in Uganda to the people. Is there a similar policy for the other partner countries in Africa?
We deal with the situation as we see it on the ground. Under the OECD guidelines, the most desirable way to ensure partnership engagement between the donor country and the partner country is for the governments to engage. Where the partner government has a budget to deal with health, education and so on, that becomes part and parcel of the prioritisation donor countries engage in to ensure the optimum outcome from the funding that is made available. Where there is a suspicion of fraud or corruption, that is bypassed. That is done on a country by country basis and Uganda is one example of that.
The issue of human rights and LGBTI comes up and we have a strong position on those matters. As well as ensuring we would not engage directly with the government in Uganda as a result of the fraud, the fact that it introduced repressive legislation confirmed our position. At the same time, we got a clear message from civil society and the NGO community that we should not refrain from providing aid to the poorest people there because the government might not be trustworthy. Nevertheless, the people do not deserve to be penalised because of the faults of the government. We have continued to ensure aid goes directly to the people who are most in need.
