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The UK government-owned agency DFID refuted claims made by the Daily Mail on Sunday.
In its statement, DFID said, 'The UK's financial support to ERRA over this period was for payment by results - which means we only gave money once the agreed work, which was primarily focused on building schools, was completed, and the work audited and verified.'
'Yet, say investigators, all the time that DFID was heaping him and his government with praise and taxpayers' cash, Shehbaz and his family were embezzling tens of millions of pounds of public money and laundering it in Britain.
Rejecting the assumption that UK taxpayers' cash meant for earthquake victims was stolen by Shehbaz, DFID maintained that 'our robust systems protected UK taxpayers from fraud'.
They discussed cooperation between the Kyrgyz Agency and DFID in development of local government in Kyrgyzstan, and entrepreneurship and innovation programs in Kyrgyzstan and Tajikistan.
In a statement, Dr Glennerster further said that the United Kingdom Department for International Development (DFID) has pledged its support to Pakistan in providing assistance to raise more tax revenue, improve the business environment and invest in greener energy initiatives.
'DFID is pleased that the government is determined to introduce reforms in the health sector for improving service delivery.
Speaking on the occasion, the Chief Secretary said that collaboration between the Punjab government and DFID was successfully underway in the areas of education, health and skill development.
Graham Ward, ICAI chief commissioner, said: "We saw very little evidence that the work DfId is doing to combat corruption is successfully addressing the impact of corruption as experienced by the poor.
The annual report said [pounds sterling]480,000 was written off "following the theft between November 2011 and February 2012 of DfID-funded humanitarian supplies from the offices and warehouses of partner organisations, to which DfID had provided funding to deliver projects and programmes".
There have been real tensions between DFID and the military on the ground in Iraq.
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