UK Government under fire for investing overseas aid in fossil fuel firms

The UK government has come under criticism for allocating taxpayers' funds to fossil fuel companies, a hospital in Kenya accused of imprisoning patients unable to afford treatment, and a business in the Democratic Republic of the Congo that exposed workers to dangerous chemicals and dumped untreated industrial waste.

During a parliamentary session on Tuesday, Members of Parliament (MPs) raised concerns about these investments. Specifically, they targeted Andrew Mitchell, the minister for development, for providing overseas aid to a company owned by Africa's wealthiest individual suspected of causing severe environmental damage.

The British International Investment (BII), owned by the Foreign, Commonwealth, and Development Office, has invested millions of pounds to address global development challenges, including climate crisis effects, unemployment, and poverty reduction in Africa, Asia, and the Caribbean.

Mitchell, who has been as minister for development for six months, emphasized the importance of BII in development finance. However, the international development committee MPs revealed that BII holds at least 20 investments in fossil fuel companies, as exposed by Open Democracy in the previous year. They also highlighted the BII's investment in Dangote Industries, owned by Africa's richest person, Aliko Dangote.

While Mitchell defended the investments, stating that business partnerships with wealthy individuals like Dangote could drive investment and development, Sarah Champion, chair of the international development committee, criticized the use of development funds for such partnerships.

Dangote Industries owns Dangote Cement, a leading cement producer in Africa, and operates the largest coal mining operation in Nigeria, which has raised concerns about soil and water contamination in local communities. MPs questioned the compatibility of these investments with the UK's commitment to the Paris Agreement and its goal of limiting global heating to 1.5 degrees Celsius by 2030.

Mitchell acknowledged the need for investments to align with the Paris Agreement. Still, he admitted that the investment instructions were based on the shareholder's guidance at the time, indicating uncertainty about their compliance today. Furthermore, MPs raised concerns about funds given to China National Investment and Guaranty Corporation, which connects to China's controversial Belt and Road initiative. 

Article Writer - LexaNews Journalist