Written answers

Tuesday, 27 November 2012

Department of Foreign Affairs and Trade

Overseas Development Aid

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade if he will provide details of all countries whose Governments receive overseas aid from Ireland; the amount of aid each of these Governments received in 2011 and to date in 2012 from the Irish State; the specific purposes of aid funding provided to each of these countries; and if he will make a statement on the matter. [52476/12]

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Ireland’s aid programme prioritises the fight against global poverty and hunger. The programme is central to our foreign policy, has an enviable international reputation and enjoys consistently high levels of public and political support.

In 2011 Ireland provided €657 million to Official Development Assistance (ODA). This funding was directed to development programmes and to providing life saving emergency humanitarian assistance in over eighty of the world’s least developed countries. The majority of this assistance was delivered through trusted partners - the UN system, International Development Organisations and Non Governmental Organisations and Irish Missionary Organisations.

Ireland also has long term, strategic development partnership programmes with a small number of developing countries, called Programme Countries, namely; Ethiopia, Lesotho, Malawi, Mozambique, Uganda, Tanzania and Zambia in sub-Saharan Africa, and Timor Leste and Vietnam in Asia. Timor Leste will cease to be a Programme Country in 2013. In these countries we aim to build government capacities to deliver the essential services that their populations need – mainly in the areas of health, education and food security. We also work in cross cutting sectors such as governance, gender equality, the environment and HIV and Aids, building systems of accountability that will ensure lasting development results.

In Programme Countries, which are at the very core of our aid programme, Ireland seeks to shape and influence development in a way which will ensure that development assistance as a concept will be obsolete within a generation. We are witnessing human progress and growth rates in our Programme Countries and indeed in Africa, which would have been considered impossible only 10 years ago. There is, of course, much more to be achieved and there is still an enormous burden of poverty, but real and tangible progress is being made. Ireland has played it’s part in this positive change.

In 2011 Programme Countries received approximately €180 million of which two thirds was delivered through Government systems at national, regional and local level. Comprehensive details of how Ireland’s total ODA, including this funding, was spent is available in the Irish Aid Annual Report. I am making arrangements for the 2011 Report to be sent to the Deputy. For 2012 we have allocated €178 million to Programme Countries and most of this has been disbursed. The full details of all expenditure will be available in the 2012 Annual Report which will be published in the New Year.

The Government is proud of our aid programme and its achievements. We are determined to maintain and build on its high international reputation, and ensure it continues to build the foundation of real change, future prosperity and well being in the lives of many of the world’s poorest people.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade the amount of the Irish overseas aid budget provided in direct aid to foreign Governments; the amount provided to non-governmental organisation; the factors that are considered when deciding which funding stream is more appropriate; and if he will make a statement on the matter. [52477/12]

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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The Government is strongly committed to Ireland’s overseas aid programme, which is a central element in our foreign policy. The programme is recognised internationally for its high quality, its strong focus on the fight against poverty and hunger, and its concentration on the poorest countries and communities of sub-Saharan Africa.

In 2011, €657 million was provided by the Government in Official Development Assistance (ODA).Of this total, approximately €520 million, representing 79% of total ODA, was managed by my Department through Irish Aid. The remaining €137 million (including Ireland’s contribution to the EU development cooperation budget) was overseen by other Government Departments.

Irish Aid provides assistance to developing countries either directly through bilateral assistance, or indirectly, through multilateral organisations. Irish Aid delivers bilateral ODA through a variety of channels. These include working in cooperation with Governments, local authorities, local communities, Non Governmental Organisations and international organisations.

A key element of Ireland’s bilateral assistance is our support for long term strategic partnerships with selected countries to support programmes for reducing poverty and advancing national development. The Programme Countries benefiting from this support are Ethiopia, Lesotho, Malawi, Mozambique, Tanzania, Timor Leste, Uganda, Vietnam and Zambia. The programme in Timor Leste will conclude in 2013.

When deciding the most appropriate delivery channel for particular aid interventions, Irish Aid takes into consideration the stability of the political environment, the reliability, accountability and transparency of government systems and the existence of effective and accountable locally-based and international Non Governmental Organisations. In 2011, €121.6 million (or 27% of bilateral ODA) was directed through Government systems in Programme Countries. The oversight, implementation and the impact of Irish Aid funded activities is closely supervised by staff based at our Embassies and offices. In addition, all proposals for Irish Aid funding in Programme Countries are rigorously appraised by Irish Aid staff in the Department of Foreign Affairs and Trade, as well as by the Programme Appraisal and Evaluation Group which includes external appraisal.

In 2011, €167 million (or 37% of bilateral ODA) was directed though Non Governmental Organisations including missionary organisations. Support was directed to these organisations following a full assessment of their capacity to manage and account for Irish Aid funds received and agreement about what results will be achieved as a result of this assistance.

The aid programme seeks to achieve a balance of delivery systems to ensure it remains effective. NGOs are supported because they work closely with local communities and groups. They also work closely with government systems in order to provide and supplement national services such as health, education and agricultural extension. Governments are supported because they have responsibility for implementing programmes and strengthening institutions that will have a lasting impact on reducing poverty. To achieve effective results in development it is important to work with NGOs, governments, local authorities and specialised organisations to bring about the lasting change necessary of development aid to become unnecessary. This is the outcome to which we are all working.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade the amount of Irish overseas aid that was provided in development aid in 2011 and to date in 2012; the amount that was provided in emergency aid in 2011 and to date in 2012; and if he will make a statement on the matter. [52478/12]

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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In 2011, Ireland provided a total of €657 million in Official Development Assistance (ODA). Approximately €520 million was administered by my Department through Irish Aid with the balance consisting of ODA eligible contributions by other Government Departments and Ireland’s share of the EU development cooperation budget.

The total of €657 million in 2011 includes approximately €81 million provided through various Emergency and Recovery funding channels. Irish Aid responded directly to emergency and humanitarian crisis situations throughout the world including Somalia, Sudan, Kenya, Ethiopia, Liberia, Democratic Republic of Congo, Afghanistan and Pakistan. Funding in excess of €20 million was provided through contributions to common humanitarian and pooled funds. This enabled us to provide a rapid response, through trusted and accountable implementing partners, to emergency and crisis situations in countries where there is no direct Irish Aid presence or where such agencies bring additional value and experience.

For 2012 the Government has allocated an estimated €639 million to Ireland’s ODA programme. My Department will administer €514 million of this total. It is anticipated that this allocation will be fully spent by the year end and that the funding provided for emergency and recovery assistance will be broadly in line with the 2011 level. However final figures will not be available until after the year end.

A detailed breakdown of Ireland’s ODA is published each year in the statistical annexes to the Irish Aid Annual Report. The annexes provide a comprehensive analysis of Ireland’s ODA, including the developing countries supported; the areas or sectors in which we engage, and the partner organisations implementing our development programmes. I am arranging for a copy of the most recent publication to be sent to the Deputy.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade when he expects the €4 million in overseas aid which was misappropriated in Uganda to be returned to the Irish taxpayer; and if he will make a statement on the matter. [52479/12]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade his views on whether that the misappropriation of overseas aid from Ireland which occurred in Uganda could not happen again and has not happened in other countries to which Ireland provides overseas aid; and if he will make a statement on the matter. [52480/12]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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I propose to take Questions Nos. 178 and 179 together.

I am deeply concerned about the recent misappropriation of €4 million of Irish development funding in Uganda. Ireland has no tolerance for fraud or any other form of financial irregularity in relation to our development programme. I have suspended approximately €16 million of Irish development assistance which was due to be channelled through the Government of Uganda systems in 2012. I initiated an immediate investigation into the misappropriation of funds by the Office of the Prime Minister which has been undertaken by a team from the Evaluation and Audit Unit of my Department. The team’s report which I have now published found that this fraud was very sophisticated and well thought out involving a high level of collusion at a senior level and that the level of collusion was exceptional and could not reasonably or normally have been anticipated. I have strongly emphasised that Irish funding has to be repaid by the Uganda Government and that all necessary actions be taken by the Ugandan authorities to pursue those guilty of this crime.

Our Ambassador in Kampala and the Director General of Irish Aid met with the Prime Minister, Minister for Foreign Affairs and the Minister for Finance and Economic Development of Uganda to underline my deep concerns and to insist that the misappropriated funds be restored by the Ugandan authorities. The Government of Uganda has expressed their own deep concern at the impact of this corruption scandal on Uganda’s international reputation and has taken some concrete actions in response. The Ugandan Government have since confirmed that: all Irish Aid misappropriated funds will be reimbursed; that the officials against whom financial impropriety has been established will be fully prosecuted; and that measures will be undertaken to tighten their internal controls.

I welcome this commitment and have directed our Ambassador to work with the Ugandan authorities to ensure that the misappropriated funds are refunded to Ireland. Discussions are underway with the Ugandan Minister for Finance and Economic Development and with the other development partners affected by this fraud, namely Denmark, Norway and Sweden in this regard. Our funding remains suspended until this issue is fully resolved.

Ireland’s aid programme is strongly focused on the poorest people and communities in sub-Saharan Africa and we have strong systems in place for the oversight and monitoring of our aid funding. All of our aid programmes are regularly examined and evaluated to ensure we achieve effectiveness and value for money. This is done through: auditors based in our Embassies; the evaluation and audit team at headquarters; international accountancy firms whom we commission to carry out audits; the national audit offices of our partner Governments; and my Department’s Audit Committee - which provides an independent appraisal of Irish Aid’s audit and evaluation and also meets with the Comptroller and Auditor General and publishes an annual report on its work. However, it is clear that notwithstanding all these ‘checks and balances’ that aid programmes through Governments and other channels in developing countries can be very challenging. We are currently examining our systems in all Programme Countries with a view to ensuring that they are fit for purpose and that there are no issues in relation to fraud or malfeasance.

I am committed to ensuring that we learn from this to strengthen our systems of risk identification, management, monitoring and audit in the future to minimise the potential for the misuse of funds.

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