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| UK ethical code to 'stop fat cats profiteering from aid budget' | UK ethical code to 'stop fat cats profiteering from aid budget' |
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| International development secretary Priti Patel to set up code of conduct and publish league tables of aid contractors | |
| Jessica Elgot and | |
| Karen McVeigh | |
| Tue 3 Oct 2017 15.00 BST | |
| Last modified on Tue 3 Oct 2017 18.27 BST | |
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| The international development secretary has hit out at “severely unethical behaviour” by aid contractors in announcing reforms that she says will end excessive rewards for consultants and agents. | The international development secretary has hit out at “severely unethical behaviour” by aid contractors in announcing reforms that she says will end excessive rewards for consultants and agents. |
| Priti Patel said the changes would “end the appalling practice of fat cats profiteering from the aid budget”. | Priti Patel said the changes would “end the appalling practice of fat cats profiteering from the aid budget”. |
| The Department for International Development (DfID) would implement a new code of conduct for ethical standards in aid contracting, she said. It would include new legal sanctions, such as the withdrawal of contracts if companies are caught breaking rules, and clauses to allow inspections to stop spiralling costs. The overhaul follows concerns over unethical practices, profiteering and a lack of competition among aid contractors. | The Department for International Development (DfID) would implement a new code of conduct for ethical standards in aid contracting, she said. It would include new legal sanctions, such as the withdrawal of contracts if companies are caught breaking rules, and clauses to allow inspections to stop spiralling costs. The overhaul follows concerns over unethical practices, profiteering and a lack of competition among aid contractors. |
| Patel told the Conservative party conference in Manchester she would publish supplier league tables to “name and shame those who fail to deliver value for money”. | Patel told the Conservative party conference in Manchester she would publish supplier league tables to “name and shame those who fail to deliver value for money”. |
| She blamed a lack of competition in the sector for poor performance, and said large suppliers included smaller businesses in their bids for contracts in order to win the work, but then dropped them from the contract. | She blamed a lack of competition in the sector for poor performance, and said large suppliers included smaller businesses in their bids for contracts in order to win the work, but then dropped them from the contract. |
| “I‘m taking the toughest approach in Whitehall to crack down on contract costs,” Patel said. “I‘m cutting red tape and simplifying the bidding process to help small British firms win with DfID and create jobs up and down the UK. | “I‘m taking the toughest approach in Whitehall to crack down on contract costs,” Patel said. “I‘m cutting red tape and simplifying the bidding process to help small British firms win with DfID and create jobs up and down the UK. |
| “On my watch I will end the crony-market where a handful of suppliers would win contract after contract, which blocked innovation and competition. I will always put the interests of taxpayers and the world’s poor ahead of consultants and middlemen.” | “On my watch I will end the crony-market where a handful of suppliers would win contract after contract, which blocked innovation and competition. I will always put the interests of taxpayers and the world’s poor ahead of consultants and middlemen.” |
| The department recently came under fire from the international development committee over aid contractor use, after Adam Smith International, one of the largest, faced serious allegations, including making use of improperly obtained DfID documents for commercial gain. | The department recently came under fire from the international development committee over aid contractor use, after Adam Smith International, one of the largest, faced serious allegations, including making use of improperly obtained DfID documents for commercial gain. |
| The department said one way to ease the way for smaller British firms to gain access to aid contracts would be to break up contracts into manageable sizes. | The department said one way to ease the way for smaller British firms to gain access to aid contracts would be to break up contracts into manageable sizes. |
| The code of conduct will cover company ethics, transparency obligations, environmental sustainability and social responsibility, including a specific requirement to combat modern slavery, a key focus of the prime minister, Theresa May. | The code of conduct will cover company ethics, transparency obligations, environmental sustainability and social responsibility, including a specific requirement to combat modern slavery, a key focus of the prime minister, Theresa May. |
| Patel’s speech came days after the foreign secretary, Boris Johnson, appeared to make a play for his department to absorb DfID, calling it “a colossal mistake in the 1990s to divide the Department for International Development from the Foreign Office”. | Patel’s speech came days after the foreign secretary, Boris Johnson, appeared to make a play for his department to absorb DfID, calling it “a colossal mistake in the 1990s to divide the Department for International Development from the Foreign Office”. |
| He told the Sun: “If we are going to be this great global campaigner for free trade, then we have got to maximise the value of overseas engagements.” | He told the Sun: “If we are going to be this great global campaigner for free trade, then we have got to maximise the value of overseas engagements.” |
| In recent years, No 10 has pushed for a more “cross-government” aid strategy, including closer co-operation with the Foreign Office. | In recent years, No 10 has pushed for a more “cross-government” aid strategy, including closer co-operation with the Foreign Office. |
| Around one-third of the aid budget is set to be spent by departments other than DfID by 2020, and any closer co-operation between the two departments is likely to be heavily opposed by charities and NGOs, who see the FCO as a far less transparent body with different standards for quality of aid impact. | Around one-third of the aid budget is set to be spent by departments other than DfID by 2020, and any closer co-operation between the two departments is likely to be heavily opposed by charities and NGOs, who see the FCO as a far less transparent body with different standards for quality of aid impact. |
| Kirsty McNeill, Save the Children’s executive director of policy and advocacy, said in a statement: “We hugely welcome the secretary of state’s renewed focus on transparency, a key call in our Next Generation Aid report launched today, and look forward to working with DfID to ensure that other government departments which currently spend aid are brought up to DfID’s high standards of impact for the world’s poorest people.’ | Kirsty McNeill, Save the Children’s executive director of policy and advocacy, said in a statement: “We hugely welcome the secretary of state’s renewed focus on transparency, a key call in our Next Generation Aid report launched today, and look forward to working with DfID to ensure that other government departments which currently spend aid are brought up to DfID’s high standards of impact for the world’s poorest people.’ |
| However, Aisha Dodwell, a campaigner at Global Justice Now, said the code of conduct would not address the bigger issue of ending profiteering from poverty. | However, Aisha Dodwell, a campaigner at Global Justice Now, said the code of conduct would not address the bigger issue of ending profiteering from poverty. |
| “Priti Patel is very clear the role of DfID is to tear down the barriers of free trade. She is focused on getting more British firms into delivering aid and securing British jobs, when aid should be untied from British industry and should be about reducing poverty,” Dodwell said. | “Priti Patel is very clear the role of DfID is to tear down the barriers of free trade. She is focused on getting more British firms into delivering aid and securing British jobs, when aid should be untied from British industry and should be about reducing poverty,” Dodwell said. |
| DfID spent £1.24bn on contractors in 2015-16, comprising 13% of the £12bn aid budget. | DfID spent £1.24bn on contractors in 2015-16, comprising 13% of the £12bn aid budget. |
| Department for International Development (DfID) | |
| Aid | |
| Priti Patel | |
| Conservative conference 2017 | |
| Conservative conference | |
| Conservatives | |
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