Source · Select Committees · Business and Trade Committee

Recommendation 15

15 Paragraph: 73

We were disappointed that the information provided by the Minister about the deployment of BEIS...

Conclusion
We were disappointed that the information provided by the Minister about the deployment of BEIS Department ODA funding in China only gave a high-level overview of the various research and training programmes taking place in China under the umbrella of BEIS ODA. This is important because it does not guarantee effective oversight of the use of BEIS funding in China.
Paragraph Reference: 73
Government Response Not Addressed
HM Government Not Addressed
We agree that transparency of BEIS’s ODA funding in China is of particular importance. BEIS is committed to improving the data management and transparency of its ODA funds. In the most recent Publish What You Fund assessment, BEIS achieved a “Good” 72% transparency score. BEIS is taking active steps to further improve its performance, including through rollout of the new data management systems. BEIS ODA research & development funds operate through a devolved delivery model under which trusted UK partner organisations, such as UKRI or the national academies, are awarded funding from BEIS to then select and administer the most relevant and promising proposals in priority areas. These partner organisations are held accountable by BEIS through Allocation Letters that have anti-slavery provisions included within them. Partner organisations are the grant administrators for research and innovation activity and are required to escalate concerns within a quarterly reporting framework. BEIS is also instituting a process of audit sampling to further enhance our assurance mechanisms. The Independent Commission for Aid Impact (ICAI) recently found, in its Tackling Fraud in the UK audit, that BEIS’s auditing approach is robust. BEIS does not deliver any ODA programmes through other government departments, although we do make payments to FCDO for the cost of hosting Newton Fund programme staff in their missions in Beijing and South China. No part of BEIS, including International Climate Finance, provides financial aid directly to the Chinese government. At the time of the Select Committee, BEIS was also working with ICAI to support their work in writing an information note of all of Government’s aid engagement with China. As part of this, BEIS provided a comprehensive project-by-project data pack concerning all ODA spending in China. This also confirmed that no ODA spending in China could be linked to the human rights abuses happening in Xinjiang. The ICAI Information Note4 on the Government’s aid engagement with China was published on 28 April and is available online.