DFID’s Approach to Anti-Corruption

This report assesses DFID’s approach to managing the risk of corruption which is one of the most important components of achieving value for money in the UK aid programme.

In this review, we examine how DFID responds to the challenge of providing aid in countries with high risk of corruption. Our report makes recommendations as to how DFID can minimise the risks to UK aid funds from corruption and how it can better assist its partner countries to address the scourge of corruption at its root.

Our assessment is that DFID’s current organisation of responsibilities for fraud and corruption is fragmented and that this inhibits a coherent and strategic response to this critical issue. DFID needs to give significantly greater attention to the fight against corruption to manage this increasing risk.

As a result of our findings this review has been marked Amber-Red.

Recommendations

Recommendation 1: In any country assessed as having a high risk of corruption, DFID should develop an explicit anti-corruption strategy, setting out an integrated programme of activities and dialogue processes.

Recommendation 2: DFID should review the structure and nature of its UK counter-fraud and anti-corruption resources, to develop a more co-ordinated approach to risk assessment, risk management, anti-corruption programming and fraud response.

Recommendation 3: DFID should develop more articulated processes for managing the corruption risks associated with particular aid types and invest more resource in due diligence and on-the-ground monitoring of delivery partners.

Recommendation 4: While continuing to invest in the legal and institutional framework for fighting corruption, DFID should focus on supporting more robust law enforcement activity to build transparency and accountability. This should include innovative forms of beneficiary monitoring and community mobilisation.

Recommendation 5: DFID should invest more in intelligence collation and analysis of corruption risks in particular sectors and countries, to inform a more strategic approach to fighting corruption.