By IRNA
London : There are insufficient checks to ensure the way UK aid is spent effectively when given as budget support to developing countries, the National Audit Office (NAO) has warned in a new report.
The watchdog said most nations receiving funding from the UK last year had major corruption problems and called for improvements in the management of pnds 461 million (dlrs 920m) of budget aid, which amounts to nearly 20 per cent of the UK’s bilateral expenditure.
The government’s Department for International Development (DFID) has been one of the leading bodies promoting budget support, given direct to foreign governments to help build their capacity and expand basic services.
NAO head, Tim Burr, said budget support can help developing country governments deliver basic services to some of the world’s most vulnerable people.
“But to ensure that money provided by the UK is spent by governments in the most efficient and effective way and that it reaches the people who need it, DFID needs to improve further some of the basics.
“These include setting more precise objectives, monitoring progress more systematically, and clarifying the risks to UK funds was managed,” he said.
In response, International Development Secretary Douglas Alexander insisted risks were “assessed carefully” and said safeguards were preventing “the misuse of funds”.