Overseas aid and accountability

These are heady times for Ireland's overseas aid programme, currently in the throes of massive expansion that will see the budget…

These are heady times for Ireland's overseas aid programme, currently in the throes of massive expansion that will see the budget increase from about €500 million last year to €1.5 billion in 2012. After decades of relative meanness, the Government is finally honouring its commitments to increase aid to United Nations target levels.

This is a welcome development, but it brings with it new levels of responsibility. Irish aid money must be spent wisely and must get to the people for whom it is intended. It must make a meaningful difference in the lives of poor people in the developing world and there must be adequate safeguards against waste and fraud. This is true of any state spending but the difficulties are magnified when the area covered is so vast and the infrastructure in impoverished states is so negligible.

The assistance delivered by the Government through Irish Aid enjoys a high reputation internationally. Irish overseas aid is more focused on the poor, less tied to political and economic objectives than is the case with other aid programmes and is so far, free of any reported fraud.

In spite of these positive aspects, there is a growing sense of unease about the current state of the aid programme. In particular, the planned decentralisation of Irish Aid to Limerick next year, at a time when such massive expansion is envisaged, is a cause for concern. Few of the aid specialists who have built up the organisation's reputation want to move; most already have major travel commitments between Ireland and countries in the developing world and are understandably reluctant to add to these.

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New staff who are willing to move have been drafted into Irish Aid from other departments, but most of these are new to the field of development. With the move just months away, there is still a massive shortfall in the numbers needed to move, and no clear indication of what will happen to the staff who remain in Dublin. Just when the budget is being increased three-fold, the institutional memory of Irish Aid risks being jettisoned for the sake of Government policy.

The audit committee report of the Department of Foreign Affairs, details of which were published this week in The Irish Times, raises further cause for concern. It says there are major staff shortages in Irish Aid, particularly in the evaluation and audit unit responsible for ensuring taxpayers' money is well spent. It also refers to the lack of a completed policy on possible fraud within the organisation and to deficiencies in accounting procedures and internal controls in partner organisations.

For years, inquiries about the management of aid have been met with bland assurances. Now the audit report lifts the veil slightly on the checks and balances designed to prevent waste and misappropriation. The Government needs to recognise that it has a duty to deal with the issues raised, as well as putting in place a transparent policy to prevent fraud and waste in the aid programme.