Mr. David Cooney:

I will say something about qualified reports. Ideally, one would not have a qualified report. However, in developing countries a qualified report is not necessarily a bad thing because it challenges the system. Given what we know, if we received audit reports that gave these systems a straight "A", we would be deeply sceptical about them because we know these are countries in development and have serious problems. We should not get too hung up on a qualified report in a developing country in the way one might be sceptical about such a report in a developed country. The programme countries are in a state of transition and have serious problems. One does not like to see qualified reports and we want to see their number reducing because we want the countries in question to improve their systems.

Deputy Harris is absolutely right on the category of "other". As I stated, this group refers to cases where money goes into a pool and is where we fell down in Uganda. We did not track that the money had gone into the pool. Normally, it goes into the pool and because we cannot dye it green, it is mixed with money from other donors and, on occasion, from the country's government.

As I stated, on the surface, one would certainly like the figure of 38% to be much lower and we are working to try to build capacity so that it will become lower. However, it would be naive and we would be fooling ourselves - dangerously so - if we were to believe we would not get any qualified audit reports from Africa. Mr. Carlos would like to say something.