Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

'Tougher scrutiny' of Britain's aid spending sees steep rise in fraud bill

Published 22/09/2016, 14:20
© Reuters. A Department for International Development worker moves boxes containing kitchen sets at a UK aid Disaster Response Center at Kemble Airport, southern England

By Tom Esslemont

LONDON (Thomson Reuters Foundation) - Britain lost 40 percent more money through fraud in its overseas aid programmes in 2015/16 compared to the previous year, data shows, with the rise attributed to better reporting of its misappropriated funds, according to government officials.

The UK government, which has stuck to a pledge to spend 0.7 percent of gross domestic product on foreign aid, has come under increasing scrutiny over how it spends its multi-billion dollar budget, which some MPs say would be better spent at home.

Data released by Britain's Department for International Development (DfID) revealed that the cost of fraud was 1.04 million pounds in 2015/16, compared with 749,000 pounds the previous year, a rise of more than 38 percent.

DfID, which operates predominantly through partner organisations, including charities, private companies and U.N. agencies, said the rise was due to "heightened scrutiny" by the department.

"Changes to the figures ... are underpinned by increased work to improve the culture of awareness raising and reporting amongst staff and partners," said a DfID spokesman.

But the data, obtained by the Thomson Reuters Foundation through a Freedom of Information request, showed that while the cost of fraud had risen, the number of recorded cases had fallen.

Of nearly 400 investigations into reports of fraud in 2015-16, only 69 turned out to be proven cases, down from 91 cases the previous year.

Five cases of fraud had been discovered between January and August 2016, the data showed. No further information was given about the nature of cases.

"We actively investigated and acted upon all suspicions and allegations of fraud, corruption and abuse of DFID resources in 2015/16," the spokesman said.

Two years ago DfID was criticised by a government ombudsman for its performance in tackling corruption in several countries in which it works.

Last year DfID spent nearly 10 billion pounds on overseas development, according to its 2015/16 annual report.

It lists among its achievements supporting 69.5 million people, including 36.4 million women, to gain access to financial services to help lift them out of poverty.

© Reuters. A Department for International Development worker moves boxes containing kitchen sets at a UK aid Disaster Response Center at Kemble Airport, southern England

The 2,800-person-strong department has a "zero tolerance" approach to fraud and corruption and "actively investigates" all suspicions and allegations of fraud, corruption and abuse of DfID resources, its spokesman said in a statement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.