UK body withdraws trade-related Africa funding

13 Dec 2013 - by Adele Mackenzie

The United Kingdom’s
department for
international development
(DFID) has shut down its
£100 million funding of
TradeMark Southern Africa
(TMSA) with immediate
effect due
to “serious
f laws in
governance”.
However
it remains
committed
to improving
trade across
Africa.
The DFID
programme
– established
to foster
regional
trade links
across
southern
Africa – included plans
for road infrastructure
development and efforts to
develop new markets for
local producers, including
regional farmers.
Media sources claim
that lavish salaries were
being paid and that the aid
funding had been spent
on unauthorised projects
in Zimbabwe. The UK’s
Mail Online quoted “inside
sources” as saying that one
TMSA official was drawing
a higher salary than David
Cameron’s annual salary.
TMSA was
approached
for
comment,
particularly
on what
had been
achieved
with the
funding
to date,
but they
declined.
“We are
exploring
alternative,
more
effective
mechanisms to support the
important steps being taken
to drive trade,” Michael
Haig, senior press officer for
DFID told FTW.
He said it was
“unacceptable” that
problems in accountability
at TMSA were not picked
up by several independent
reviews.
“It is clear there are
serious f laws in the
governance, oversight and
management of TMSA –
stretching back to its design
and implementation phase
in 2007 to 2010,” said Haig.
DFID
commented
in a
statement
that while
some
objectives
had been
met – of the
£67 million
spent to
date –
“TMSA had
not achieved
a significant
number
of the
key objectives expected”.
Haig said Her Majesty’s
Government would now
reclaim the remaining
uncommitted funds, which
amount to around £42
million.
Development secretary
for the UJ government,
Justine Greening,
announced last week that
programme management
controls would be
further strengthened.
These measures include
mandatory annual
reviews and programme
improvement plans.
“Programmes with
significant weaknesses that
fail to improve significantly
will be considered for
closure,” said Greening.
She added
that she had
expanded
DFID’s
internal
audit
capability
to enable an
enhancement
of its riskbased
approach.
Haig said DFID remained
“firmly committed” to
improving trade across
Africa. “We are considering
how to break down barriers,
boost infrastructure and
help southern Africa
integrate,” he said.