An independent body developed to increase transparency and accountability in international aid spending has been revealed by the Department for International Development (Dfid).

Dfid unveiled the The Independent Commission for Aid Impact (ICAI), which will monitor UK aid spending and effectiveness, in Parliament on Friday.

The ICAI has been set up in response to speculation over how the government is spending aid money.

Secretary of State for International Development Andrew Mitchell said, “Results, transparency and accountability will be our watchwords and will define everything we do. The new commission has the power to scale up the projects that have proved their success. It will be there to ensure we deliver on our promises.”

How will it work?

The ICAI will produce approximately 20 progress reports with detailed cost breakdowns every year to be published on the organisation’s website. A traffic light system, with red, amber and green will be used to determine how effective the aid is.

The ICAI will operate independently from DFID under chief commissioner Graham Ward, former president of the Institute of Chartered Accountants and current vice chair of the World Energy Council. Three secondary commissioners will also be appointed to help lead the organisation in its objectives. 

The commission hopes to pave the way for other donors to acknowledge success and address shortcomings while practising clear financial accountability, Mitchell said: “The UK government is dispensing with the power to sweep things under the carpet. The Commission will shine a light on where aid works and where improvements are needed. We will lead other donors in opening our books to independent scrutiny.”