Red tape must not delay overseas aid in reaching needy projects in developing countries, the Dail's spending watchdog has warned.

The Public Accounts Committee (PAC) also said that NGOs and missionaries need to be given an official role in distributing funds because of their local knowledge and experience. Members of the all-party PAC visited Irish Aid-funded projects in South Africa and Zambia during a week-long fact-finding trip in May.

Launching a report on the issue, PAC chairman Bernard Allen said: "Where Irish Aid is working with Third World governments, red tape and bureaucracy must not delay funds from getting to where they are most needed, and administration costs must not cut into the budget."