A recent report by the Observer highlighted potential issues with the oversight of the £4.3bn spent annually on housing asylum seekers in the UK. The lack of proper monitoring and controls in place has raised concerns about potential scams and scandals similar to those seen in Covid contracts. Sir Mark Lowcock, a former UN official, has expressed worries about the decline in spending controls since the Department for International Development (DfID) was folded into the Foreign, Commonwealth, and Development Office (FCDO), coupled with a rapid increase in spending on refugees.
Lowcock emphasized the urgent need for an independent forensic audit on the spending, especially given the significant increase from £500m to £4bn in a short period. He highlighted the need for proper processes, controls, and understanding of whether value for money is being achieved. Transparency International UK has also flagged corruption red flags in government Covid contracts totaling over £15bn.
The report also noted a decline in expertise on spending and monitoring aid since the DfID was merged with the FCDO in 2020. Experts have warned against injecting more money into a system that is unable to spend and monitor funds properly. The current government is conducting a review of its international development approach to address these concerns and enhance the impact of UK aid spending.
Overall, the report underscores the importance of proper oversight and controls in government spending, especially in crucial areas like housing asylum seekers and aid projects. The call for an independent audit and strengthening of the aid budget management system highlights the need for transparency and accountability in public spending.
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