§ Mr. StreeterTo ask the Secretary of State for International Development (1) what measures are in place to prevent British aid being used to fund or encourage illegal activity in developing countries; [136635]
(2) what steps are taken to ensure that British aid is not misused; and if she will make a statement. [136630]
§ Clare ShortThe Department's Office Instructions manual, a copy of which is available in the Library, contains an explicit requirement for all development assistance to comply with the Overseas Development and Co-operation Act 1980. If there was any question regarding the legality of an activity in the country concerned, this would be addressed as part of the appraisal procedure. All expenditure is subject to subsequent monitoring, accounting and audit processes to verify that funds are used for the purposes intended. External scrutiny of the Department's expenditure is carried out by the National Audit Office on behalf of the Comptroller and Auditor General.
§ Mr. StreeterTo ask the Secretary of State for International Development what assessment she has made of the scope for corruption in sector-wide approaches to aid. [136637]
§ Clare ShortSector-wide approaches are considered after careful appraisal of a wide range of factors which include, in particular, the robustness and integrity of financial management systems. Where such systems have inadequate controls, separate procurement, disbursement and/or audit channels are used. Technical assistance associated with a sector-wide approach can include strengthening of the expenditure management, procurement, reporting, accounting and audit capacity of the sector concerned. Thus sector-wide approaches help deliver country wide improvements in health and educational provision and improved financial management.