Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Question 28: To ask the Tánaiste and Minister for Foreign Affairs and Trade his plans to regulate the Corporate Governance of the Overseas Development Non Governmental Organisation sector; if he has discussed the issue with Dochas on the issue; and if he will make a statement on the matter. [36420/12]

Joe Costello (Dublin Central, Labour)
Link to this: Individually | In context

The Government's aid programme, which is managed by Irish Aid in the Department of Foreign Affairs and Trade, channels a significant proportion of funding through development Non-Governmental Organisations (NGOs). This reflects the strong contribution which Irish NGOs are making to the fight against world poverty and hunger, and the broad support which they continue to receive from the Irish public.

Irish Aid places a strong emphasis on corporate governance and financial oversight in its relationships with the development NGOs. Its grant approval process is strongly focused on the achievement of key development results. The process encompasses an assessment of corporate governance and financial oversight issues, including the level of oversight by the Board of Directors of each organisation's strategic direction, financial sustainability, risk management, accountability and transparency. Corporate governance issues are monitored regularly and, where necessary, performance benchmarks are put in place to improve standards and ensure accountability and transparency.

The Charities Act 2009 governs the regulation and oversight of charities in Ireland. It provides for the establishment of a register of charities and the creation of a new Charities Regulatory Authority to ensure greater accountability and increased transparency in the charity sector.

While a number of sections of the Act have been commenced, the Charities Regulatory Authority has not yet been established. However, in relation to the development sector, Irish Aid has provided funding to the association of Irish non-governmental development organisations, Dóchas, to develop a Code of Corporate Governance, in partnership with the Corporate Governance Association of Ireland.

This Code sets out best practice principles, drawing from established codes in other countries. They include standards in relation to board responsibilities, leadership, accountability, integrity and transparency. I attach great importance to work to improve standards of corporate governance and strengthen NGO accountability. Irish Aid is continuing to work with, and fund, Dóchas to support ongoing work on enhancing professional standards for NGOs and to encourage and monitor compliance with the Code of Corporate Governance.