Audit of AID assistance to the Central African Republic and Equatorial Guinea

bilateral assistance programs to the Central African Republic and the Republic of Equatorial Guinea focus on developing each country"s agricultural sector. The programs are under the supervision of USAID/Cameroon. In the Central African republic, the A.I.D. program has included three projects, two of which were active at the time of audit: the Post Harvest Food System for $4.3 million and the Rural Enterprise Development Project for $3.5 million. In Equatorial Guinea, the A.I.D. Cooperative Development Program consisted of three projects, one of which was active. This program aimed to establish indigenous institutions to promote increased agricultural production and marketing. The authorized amount for the one active project was about $1 million per year. There were also some centrally funded regional projects in these countries. A performance audit was conducted of A.I.D."s assistance to these two countries. The audit found that there were weaknesses in the general oversight and management by USAID/C of projects within each of the two countries. In Equatorial Guinea in particular, we noted unauthorized excess expenditures of certain budget line items, weak accountability due to improper financial reporting and the lack of a required inventory system, and noncompliance with A.I.D. procurement regulations, including commingling of personal and project funds. It is recommended that USAID/C take certain actions prior to extending this and other projects. USAID/C has expressed disappointment that the audit focused heavily on the compliance problems of one project in Equatorial Guinea, rather than suggesting general solutions for more effective management of regional projects. The auditors did acknowledge that their original objectives were altered by the accountability problems which were encountered at one site, but they feel that the in-depth look at this project provided even greater insights into the management deficiencies involved. (Author abstract)