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International Development (Anti-corruption Audit) Bill

International Development (Anti-corruption Audit) Bill






amend section 7 of the International Development Act 2002 to require the

imposition of conditions relating to internationally supervised audit on


Whereas the Government of the United Kingdom has, in conjunction with other

persons, organisations and governments, already made significant progress in

promoting development in other countries and alleviating poverty, it is

desirable and expedient to require the Secretary of State to promote practical measures

to improve the audit of public expenditure in developing countries and thereby to

reduce corruption:—

Be it therefore enacted by the Queen’s most Excellent Majesty, by and with the

advice and consent of the Lords Spiritual and Temporal, and Commons, in this

present Parliament assembled, and by the authority of the same, as follows:—


Amendment of the International Development Act 2002


The International Development Act 2002 (c. 1) is amended as follows.


In section 7 (terms on which assistance is provided)—


in subsection (1), after the first word “may”, insert the words “, subject

to subsection (1A),”;



after subsection (1) insert—


The Secretary of State shall, for the purposes set out in

subsection (1B), take such steps as he thinks fit to—


impose conditions on assistance provided under this

Act to secure that assistance to a particular country


complies with the requirements set out in subsection

(1C), and


encourage other countries and relevant international

financial institutions to do likewise.


The purposes set out in this subsection are—


Bill 40 54/1

International Development (Anti-corruption Audit) Bill




to promote the economy, efficiency and effectiveness of

expenditure within countries arising from assistance

under this Act, and


to reduce corruption in those countries.


The requirements set out in this subsection are that—



audit of any public expenditure within the country

arising from assistance under this Act is carried out by

or under the supervision of suitably qualified persons

authorised by relevant international financial

institutions, undertaken, so far as the Secretary of State


deems practicable, in conjunction with those appointed

for the purpose of such audit within that country; and


reports arising from such audit are available to—


the government of, and parliamentary bodies

within, the country,



the Secretary of State, and


relevant international financial institutions.”;



after subsection (4), insert—


In this section ‘relevant international financial institutions’


means those international financial institutions which—


have as one their objects economic development, either

generally or in any region of the world, and


are certified for the purposes of this section by the

Secretary of State.



The Secretary of State shall from time to time lay before each

House of Parliament a list of—


international financial institutions certified for the

purposes of this section, and


countries in respect of which assistance complies with


the requirements set out in subsection (1C).”


Short title and commencement


This Act may be cited as the International Development (Anti-corruption

Audit) Act 2005.


This Act shall come into force at the end of a period of two months beginning


with the day on which it is passed.


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Revised 7 July 2005