cdc group

Statement by Global Justice Now and The Corner House

MPs have today voted in favour of a controversial bill that development campaigners say would effectively privatise huge amounts of the UK’s overseas aid budget.

The Commonwealth Development Corporation Bill will enable DfID to quadruple the amount of money it channels through its private equity arm, the CDC group, from £1.5 billion to £6 billion. The bill would also allow the limit to raise to £12 billion without the need for further primary regulation.

MPs are set to vote tomorrow on a controversial bill that development campaigners say would effectively privatise huge amounts of the UK’s overseas aid budget. The Commonwealth Development Corporation Bill would enable DfID to quadruple the amount of money it channels through its private equity arm, the CDC group, from £1.5 billion to £6 billion.. The bill would also allow the limit to raise to £12 billion without the need for further primary regulation.

Aid campaigners have accused DfID and the government of ‘inviting scandal’ by trying to divert billions of pounds more of UK aid money through its private equity arm despite repeated criticisms that it hasn’t been able to demonstrate its development impact. The accusations are made in a new briefing that has been submitted to members of the Bill Committee who are currently considering the government plans.