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| MP attacks 'poverty chief's' pay | MP attacks 'poverty chief's' pay |
| (about 2 hours later) | |
| A senior MP has said it is "ridiculous" that the head of a government-owned body which helps to tackle poverty in developing countries earns nearly £1m. | A senior MP has said it is "ridiculous" that the head of a government-owned body which helps to tackle poverty in developing countries earns nearly £1m. |
| Public Accounts Committee chairman Edward Leigh said managers at CDC Group, which invests in firms in poor nations, had "comfortable" pay deals. | |
| The National Audit Office (NAO) called for stronger ministerial supervision. | |
| CDC said its boss Richard Laing and other executives were paid according to their exceptional 2007 performance. | |
| Established as the Colonial Development Corporation in 1948, CDC is responsible for channelling investment into many of the world's poorest countries by supporting promising and growing businesses there. | Established as the Colonial Development Corporation in 1948, CDC is responsible for channelling investment into many of the world's poorest countries by supporting promising and growing businesses there. |
| In its report on CDC's performance, NAO concluded that it had "exceeded" financial targets set in 2004, when the body was restructured, and obtained a "good return" on public funds. | In its report on CDC's performance, NAO concluded that it had "exceeded" financial targets set in 2004, when the body was restructured, and obtained a "good return" on public funds. |
| It is ridiculous that the chief executive of a government-owned body aimed at reducing poverty can earn £970,000 in a single year Edward Leigh MP | It is ridiculous that the chief executive of a government-owned body aimed at reducing poverty can earn £970,000 in a single year Edward Leigh MP |
| But it expressed concerns about the Department of International Development's (DFID) oversight of the company on issues such as executive pay and reporting of performance targets. | But it expressed concerns about the Department of International Development's (DFID) oversight of the company on issues such as executive pay and reporting of performance targets. |
| It found the firm had awarded its executives pay packets "well above" levels set in 2004, after the organisation exceeded performance targets in key areas. | It found the firm had awarded its executives pay packets "well above" levels set in 2004, after the organisation exceeded performance targets in key areas. |
| Edward Leigh, chairman of the Commons Public Affairs Committee, said some managers were being paid up to twice as much as conceived by ministers in 2004. | Edward Leigh, chairman of the Commons Public Affairs Committee, said some managers were being paid up to twice as much as conceived by ministers in 2004. |
| "It is ridiculous that the chief executive of a government-owned body aimed at reducing poverty can earn £970,000 in a single year," he said. "The truth is that, despite the fact CDC is government-owned, its reporting obligations to DFID have been weak." | "It is ridiculous that the chief executive of a government-owned body aimed at reducing poverty can earn £970,000 in a single year," he said. "The truth is that, despite the fact CDC is government-owned, its reporting obligations to DFID have been weak." |
| 'Credible contribution' | 'Credible contribution' |
| Mr Leigh also said it was insufficiently clear how effective the body had been in contributing to poverty reduction despite more than doubling its assets in the past four years. | Mr Leigh also said it was insufficiently clear how effective the body had been in contributing to poverty reduction despite more than doubling its assets in the past four years. |
| The NAO report found that the organisation's current cash reserves were larger than its overall level of investments, something that it said CDC had agreed to rectify. | The NAO report found that the organisation's current cash reserves were larger than its overall level of investments, something that it said CDC had agreed to rectify. |
| "CDC will have made a credible contribution to economic development in these countries," said Tim Burr, head of the National Audit Office. | "CDC will have made a credible contribution to economic development in these countries," said Tim Burr, head of the National Audit Office. |
| CDC's pay arrangements are deliberately designed to attract the best investment professionals to work in often very challenging markets CDC spokesman | CDC's pay arrangements are deliberately designed to attract the best investment professionals to work in often very challenging markets CDC spokesman |
| "But the scale of that contribution, or the direct effect on poverty reduction for poor people, is harder to demonstrate. DFID needs better evidence on the scale of CDC's impact." | "But the scale of that contribution, or the direct effect on poverty reduction for poor people, is harder to demonstrate. DFID needs better evidence on the scale of CDC's impact." |
| The Conservatives said CDC's financial performance should be "applauded" but expressed alarm that ministers were "failing to keep a close eye" on aspects of its activities. | The Conservatives said CDC's financial performance should be "applauded" but expressed alarm that ministers were "failing to keep a close eye" on aspects of its activities. |
| "It is deeply worrying DFID is failing to demand real evidence of the impact of CDC in reducing poverty and that it failed to keep tabs on executive pay," said shadow international development spokesman Andrew Mitchell. | "It is deeply worrying DFID is failing to demand real evidence of the impact of CDC in reducing poverty and that it failed to keep tabs on executive pay," said shadow international development spokesman Andrew Mitchell. |
| CDC said it would carefully look at the NAO's recommendations and welcomed the "endorsement they give to CDC's mission of alleviating poverty by helping private sector growth in developing countries". | CDC said it would carefully look at the NAO's recommendations and welcomed the "endorsement they give to CDC's mission of alleviating poverty by helping private sector growth in developing countries". |
| On the issue of pay, a spokesman said its chief executive's salary was "strongly performance-related" and had the backing of ministers. | On the issue of pay, a spokesman said its chief executive's salary was "strongly performance-related" and had the backing of ministers. |
| "CDC's pay arrangements, as set out in conjunction with DFID, are deliberately designed to attract the best investment professionals to work in often very challenging markets," he said. | "CDC's pay arrangements, as set out in conjunction with DFID, are deliberately designed to attract the best investment professionals to work in often very challenging markets," he said. |
| International Development Secretary Douglas Alexander recently announced fresh objectives for CDC to focus its investments more on the world's poorest countries, particularly in sub-Saharan Africa. | International Development Secretary Douglas Alexander recently announced fresh objectives for CDC to focus its investments more on the world's poorest countries, particularly in sub-Saharan Africa. |