Audit of USAID/Zaire"s agricultural marketing development project III, project no. 660-0098

The audit covers the period 7/84-8/90. Problems were encountered with the original design, leading to modification of some components and elimination of others. Specically, the road stabilization component was modified placing primary emphasis on bridges and culverts rather than on roadbeds. The shipbuilding component was modified by dropping the metal boat construction portion and at the same time increasing the emphasis on the construction and sale of wooden boats. In general. USAID/Z has deemphasized construction and placed more focus on TA. The project still needs strengthening in several areas, however. Storage facilities for machinery and spare parts at the parastatal Regie des Vois Fluviales (RVF) are inadequate and RVF personnel have not followed the established system for receiving, storing, and accounting for all the equipment. As a result, commodities valued at about $300,000 may not be adequately protected from damage and pilferage. Spare parts for rehabilitating boatyard machinery have been ordered, but at least four major machines have not been rehabilitated because the RVF shop foreman departed and there were no qualified replacements. Unless the repairs are undertaken, the $25,000 spent on spare parts for the $150,000 machinery will be wasted. Management practices for nonexpendable property are weak. Adequate records are not maintained, project property has been mixed with Embassy property on several occasions, property has been issued to ineligible personnel, and the 1989 inventory was not conducted. At least $70,000 in nonexpendable property was used by personnel not working on the project. The project has also been adversely affected by a shortfall in GOZ contributions. While $8.4 million in local currency was obligated, only $3.4 million has been provided.