Mr. Liam MacGabhann:

When we are working through government systems, a key component of the controls we have in place is connected with the work undertaken by auditor generals and parliaments in terms of their oversight capacities. The level of oversight by the Auditor General, the Ugandan Parliament and the administrative system is an important element of our control system. Mr. Gaffey mentioned earlier the support we provide to the Office of the Auditor General and the parliamentary oversight structures through the FINMAP programme. That is critical to overseeing the support that we provide through government systems in Uganda.

In terms of our own controls, when we initially look at a programme for a country like Uganda, we go through a complex and elaborate process to determine what type of programme is appropriate to that country and what types of oversight measures should be introduced. That process takes almost a year. We must work out the types of audit and evaluation system to put in place. If we are working through government systems, we must determine what supports we should provide to make sure they have the capacity to oversee these programmes. We have audit and evaluation systems in place. We have our own independent audit committee in the Department, to which we report. We have improved the capacity of our embassies with internal auditors and accountants who are charged with evaluating, auditing and overseeing the programmes on the ground. We work with other donors too. We have joint arrangements with donors through basket funds and we work with them to make sure the programmes are being managed properly on the ground. We also work with the governments of the programme countries. In Uganda we have joint arrangements whereby we sit down with the Government and other donors to examine the way in which the programmes are being managed on the ground. We continuously assess whether the correct structures are in place to manage the programmes properly.

Members should note that it is no accident that we have not had much fraud of this nature in the past. Our systems have worked well and have been robust and effective in avoiding this level of fraud. We will learn from this incident and must do so. I wish to reiterate that we have not had serious fraud of this nature in the past because of the success of the systems that we have in place.