Brendan Smith (Cavan-Monaghan, Fianna Fail)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade the progress that has been made to date on reviewing the auditing system in his Department in view of misappropriation of overseas development aid funds by Ugandan officials; and if he will make a statement on the matter. [50249/12]

Eamon Gilmore (Dún Laoghaire, Labour)
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The audit policy and approach in the Department of Foreign Affairs and Trade is regularly reviewed and updated in the light of risk assessments, particularly with regard to the overseas aid programme which accounts for the largest proportion of the Department’s expenditure. The audit approach in my Department is in line with international auditing standards. The Department has taken a number of steps to review all systems governing the management of our aid programme, including our audit systems, since the misappropriation of funds was recently identified in Uganda. The Deputy will be aware that I immediately sent a team to examine all matters arising from the auditor general's report on the misappropriation of funds. This team has now returned. I will receive its report shortly. Following the consideration of this report, all of our systems, including our audit systems, will be reviewed and strengthened in light of any weaknesses the report may identify. While the team was in Kampala, it held discussions with the Ugandan auditor general regarding the subsequent work to be undertaken by his office. We have a policy of working closely with the auditor general because we believe he is in the best position to identify weaknesses and follow up on the issues that have been already identified. I am satisfied with the programme of work the auditor general is undertaking on foot of his report. This work includes an audit of internal controls within the Ugandan system of government and further investigative audits of expenditure programmes under the control of the office of the Ugandan Prime Minister. In addition and as a precautionary measure, all Irish Aid heads of mission in the past week have been instructed to immediately interrogate control systems in their programmes to ensure all agreed procedures and protocols are being carried out.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As previous speakers said, we had a good meeting yesterday with the Tánaiste's officials, who went through this matter in great detail. Everyone agreed that the systems need to be robust and rigorous. Mr. Rogers made the important point that this negative publicity is particularly "dispiriting" given that so much progress has been made in Uganda through the Irish Aid programme. There have been substantial improvements in areas like health, education and development. At a time when the misappropriation of funds obviously and quite rightly attracts negative publicity, we need to send a clear message to the taxpayer that exceptionally good work has been done through Irish Aid programmes over the years. Mr. Rogers mentioned the work that has been done through Irish Aid, Irish missionaries and Irish public servants since 1994. He also referred to the work of Mother Kevina, who apparently built up many schools, clinics and hospitals at the turn of the last century. That type of Irish involvement in bringing services to the people has been of huge benefit to this very deprived country. The Tánaiste will recall that in the report which was presented to him by the audit committee of his Department, Mr. Furlong recommended that a chief risk officer and a qualified head of finance should be appointed in the Department of Foreign Affairs and Trade. I presume Mr. Furlong is the former Secretary General and senior civil servant. Is the Tánaiste giving consideration to the creation of such positions?

Eamon Gilmore (Dún Laoghaire, Labour)
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I agree that this money, which was intended to go to programmes in areas like HIV-AIDS, schools and medical facilities, clearly should not have been misappropriated. We will not tolerate any misappropriation of Irish Aid funds. That is why we have acted so quickly in this matter. I assure the Deputy who referred to the recommendations of the audit committee that my Department takes the issue of risk extremely seriously. A risk register is maintained by a risk group, which is chaired by an assistant secretary.

In addition, risk is reviewed at monthly meetings of the management committee. The Department also has professionally qualified staff employed in its finance sections. The Department's audit committee has, nevertheless, recommended that the Department appoint a dedicated chief risk officer and a professionally qualified chief financial officer. The audit committee recommends that these officers be appointed at assistant secretary grade.

The ability of my Department to respond to this proposal has been limited by the embargo on public service recruitment necessitated by the need to reduce Government expenditure. Last June, following the publication of the audit committee's most recent annual report, the Secretary General of my Department invited the audit committee to meet with the management committee to discuss these proposals. This meeting took place this week, following which the management committee, with my support and encouragement, accepted the recommendations of the audit committee. An appropriate member of the management committee will assume the additional responsibilities of chief risk officer and sanction is being sought from the Department of Public Expenditure and Reform for the recruitment of a professionally qualified chief financial officer who will sit on the management committee.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I welcome the Tánaiste's final comments in regard to that appointment and consider it a worthwhile development. One other suggestion I made to his officials yesterday was that we need the utmost co-operation with the other donor countries working in those partnership countries, by and large, other EU member states. This is to give out a message that misappropriation of even 1 cent will not be tolerated by any of the donor countries. Working together with other donor countries can also impact on the message that misappropriation of taxpayers' money, from whatever member state, will not be tolerated and that the aid designated for people living in desperate circumstances in Uganda or other developing countries must reach those people.

Eamon Gilmore (Dún Laoghaire, Labour)
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Yes. As I said , the funds of three other countries - Denmark, Sweden and Norway - were misappropriated in this whole business in the Prime Minister's office. Our ambassador in Kampala co-ordinated meetings of the embassies of the three other countries concerned and worked to co-ordinate a joint approach on the issue with the Ugandan authorities. I was very pleased with the level of co-operation with the other three countries involved. The Deputy may take it we will work very closely with other donor countries and we will, of course, also work very closely with the European Union where it is directly involved.