Question to the Department for International Development:

To ask the Secretary of State for International Development, what steps her Department is taking to ensure that it maintains accountability and oversight of the use of public funds by the Commonwealth Development Corporation.

DFID is an active and engaged shareholder. Our influence over the strategic direction of CDC is evident from the changes that CDC has undergone over the last 5/6 years, in which we have played a key role.

DFID, as sole shareholder, sets the company’s investment policy – outlining which countries CDC should invest in, the types of investments it makes, and setting the performance targets CDC must reach. DFID appoints the Chair and certain other members of the Board, and holds the Board accountable for delivery of CDC’s five year strategy and for achieving the performance targets set in the Investment Policy.

Management has delegated authority from the Board to make investment decisions, meet corporate objectives and financial regulatory obligations.

DFID exercises shareholder oversight through close contact with both Board and management, including via Quarterly Shareholder Meetings held to review progress and performance (financial, development impact, risk management, investment pipeline forecasts) and Annual Meetings with the Board.

DFID’s oversight of CDC is scrutinised by the International Development Committee, the National Audit Office, UK Government Investments, the Treasury and the Public Accounts Committee. The National Audit Office recently described DFID’s governance arrangements as ‘thorough’ in its recent value for money study.