AUDIT REPORT : NARCOTICS CONTROL

PROJ ESTABLISHED TO END ILLICIT PRODUCTION, SMUGGLING AND TRAFFICKING OF OPIUM AND HEROIN FOR WHICH LAOS HAS SERVED AS A MAJOR REGIONAL AND INTERNATIONAL CONDUIT. PROJ ALSO CONTAINS ADDICT REHABILITATION & AGRICULTURAL REDIRECTION COMPONENTS. SINCE PROJ INCEPTION, $3.5 MILLION AND US DRUG ENFORCEMENT AGENCY, US CUSTOMS BUREAU, & USAID PUBLIC SAFETY DIVISION ADVISORY ASSISTANCE HAVE BEEN PROVIDED. AUDITORS REVIEWED RECORDS & DOCUMENTS, INTERVIEWED USAID & LAOTIAN OFFICIALS, & OBSERVED NARCOTICS CONTROL ACTIVITIES IN THE "GOLDEN TRIANGLE" REGION. AUDITORS NOTED THE ABSENCE OF ADEQUATE QUANTITATIVE DEFINITION OF TARGETS IN PROJ DESIGN THAT THEREBY POSES SIGNIFICANT DETERRENT TO BOTH MEASUREMENT OF PROJECT EFFECTIVENESS AND MEANINGFUL EVALUATION. SIGNIFICANT LOOPHOLES EXIST IN ENFORCEMENT ACTIVITIES,LIMITING THE EFFECTIVENESS OF CONTROL EFFORTS. GOVT ENACTED AN ANTI-NARCOTICS LAW IN SEPT 71 THAT PERMITS CITIZENS OVER AGE 40 TO CONTINUE TO LEGALLY GROW & SMOKE OPIUM. OPIUM DENS CONTINUE TO OPERATE IN VIENTIANE. ALL KNOWN HERION REFINERIES HAVE BEEN DESTROYED,BUT CONTROL OF TRAFFICKING REMAINS INADEQUATE,THE ESTABLISHMENT OF CUSTOMS POSTS NOTWITHSTANDING. OF OVER 300 ARREST,FEW HAVE RESULTED IN CONVICTIONS. ONLY ONE TON HAS BEEN SEIZED OF ESTIMATED 20 TONS OPIUM GROWN IN LAOS AND THERE IS VIRTUALLY NO CONTROL OVER MASSIVE CROP PRODUCED INEIGHBORING BURMA. OVER 900 ADDICTS HAVE COMPLETED TREATMENT IN THE NEW NATIONAL DETOXIFICATION CENTER WITH 1800 OTHERS SENT TO THAILAND FOR TREATMENT, BUT AUDITORS NOTE ABSENCE OF MEANINGFUL BASELINE GOAL AND LACK OF FOLLOW-UP PROCEDURES TO DETERMINE DEGREE OF REHABILIATION. ESTABLISHEMENT OF SUCH PROCEDURES IS RECOMMENDED. DESPITE THE FEB 73 OPENING OF AN AGRIC REDIRECTION TRNG CENTER AND INITIATION OF TRNG IN VEGETABLE, LIVESTOCK,& FISH PRODUCTION, AUDITORS CONTEND THAT A CASH CROP ALTERNATIVE HAS NOT BEEN DEVELOPED AND THAT THERE IS NO INCENTIVE FOR OPIUM GROWERS TO TURN TO OTHER CROPS. AUDITORS ALSO RECOMMEND THAT DIVERSE USAID UNITS INVOLVED IN THE PROJECT COMPLETE A DETAILED,JOINT PIP.