CATHOLIC RELIEF SERVICES (CRS) PL-480, TITLE II PROGRAMS AND SECTION 204 GRANTS IN EGYPT (AUDIT CONDUCTED FROM 10/78 TO 2/79

EVALUATION COVERS THE PERIOD 7/1/76 TO 9/30/78 AND IS BASED ON REVIEW OF PROGRAM DOCUMENTS, CRS PROCEDURES/RELATIONS WITH MISSION, COMMODITY USE, AND FIELD VISITS (THOUGH NOT TO THE BEHEIRA GOVERNORATE (BG). CRS MANAGES FOUR TITLE II PROGRAMS: SCHOOL FEEDING FOR 1.1 MILLION PRIMARY SCHOOL (PS) CHILDREN; MATERNAL CHILD HEALTH (MCH) FOR 500,000 CHILDREN UP TO AGE SIX; NUTRITIONAL EDUCATION FOR THE FIRST TWO PROGRAMS; AND OTHER CHILD FEEDING FOR THOSE UNDER 14. CRS MONITORING HAS GENERALLY BEEN ADEQUATE. PROGRAM EMPHASIS, HOWEVER, HAS BEEN ON PS FEEDING, ALTHOUGH PRE-SCHOOL CHILDREN ARE THE TARGETED GROUP. ALSO, 1.2 MILLION POOR RURAL CHILDREN OF PS AGE, MOSTLY FEMALE, ARE NOT BEHIND FED BECAUSE THEY DO NOT ATTEND SCHOOL. ONLY ABOUT 10% OF THE ELIGIBLE CHILDREN IN THE MCH PROGRAM ARE BEING REACHED DUE TO COMMODITY LIMITATIONS. BENEFICIARIES ARE LOCATED MOSTLY IN THE URBAN NORTH, ALTHOUGH MALNUTRITION IS WORSE IN THE RURAL SOUTH. SERIOUS DIVERSIONS/MISUSE (AT LEAST $250,000) OF TITLE II COMMODITIES HAVE OCCURRED IN BG. ALTHOUGH MISSION WAS NOTIFIED OF THIS IN 1977, DELIVERIES TO BG CONTINUED. NEITHER MISSION NOR CRS HAS INITIATED RECOVERY ACTION REQUIRED BY AID REGULATIONS. A TITLE II FLOUR EXCHANGE AGREEMENT WAS APPROVED BY AID/W FOR THE SCHOOL FEEDING PROGRAM, ALTHOUGH PROHIBITED BY AID REGULATIONS. EXCUSING CIRCUMSTANCES WERE NOT FOUND. THERE IS EVIDENCE THAT THE GOVERNMENT OF EGYPT (GOE) IS REAPING WINDFALL BENEFITS FROM THIS PRACTICE. DESPITE MISSION DISAGREEMENT, IT IS RECOMMENDED THAT: (1) TITLE II PROGRAMS IN EGYPT BE RESTRUCTURED TO EMPHASIZE ASSISTANCE TO THE NEEDIEST, NUTRITIONAL EDUCATION FOR MOTHERS OF YOUNG CHILDREN, AND COMMODITY ASSISTANCE FOR CHILDREN UNDER SIX; (2) MISSION AND CRS DETERMINE THE EXTEND OF MISUSE IN BG, INITIATE A RECEOVERY ACTION AGAINST GOE AND NOT REINSTATE THE PROGRAM UNTIL RECOVERY IS MADE AND IT IS ASSURED THE PROGRAM WILL FUNCTION PROPERLY; AND (3) THE PRACTICE OF FLOUR EXCHANGE BE TERMINATED. THERE IS SOME, BUT NOT CONVINCING, POST-AUDIT EVIDENCE THAT BG PROBLEMS ARE BEING ALLEVIATED.