I'm not happy with any of the other definitions. A quango is a fucking waste of tax-payer's money where civil-servants are paid 60 grand to push bits of paper around a desk for eight hours a day.
The Strategic Rail Authority (SRA) is a perfect quango. Answerable to no-one, and sucks up government money faster than one of John Prescott's cabinet aides.
1) QUasi Autonomous Non GovernmentalOrganization.
2) An exotic fruit that looks like a blue mango.
3) A creature that eats babies. To only be used in the phrase below.