EXAMINATION OF OPPORTUNITIES INDUSTRIALIZATION CENTERS INTERNATIONAL (LUSAKA, ZAMBIA)

PURPOSE OF THE GRANT IS TO ESTABLISH A TRAINING UNIT IN LUSAKA, ZAMBIA, TO TEACH JOB SKILLS TO THE UNEMPLOYED AND UNDEREMPLOYED, AND TO PROVIDE GUIDANCE FOR INSTITUTIONALIZING A TRAINING SYSTEM. AUDIT INCLUDED DISCUSSIONS WITH OIC/I AND OIC/ZAMBIA PERSONNEL. DIFFICULTIES IN LOCATING A SITE AND LATE ARRIVAL OF PROJECT STAFF DELAYED THE STARTING OF PROJECT ACTIVITIES BY 10 MONTHS. FORMAL VOCATIONAL COUNSELING WAS PLANNED TO START IN 7/76 BUT DID NOT BEGIN UNTIL 4/77. AS A RESULT, NONE OF THE PLANNED 100 STUDENTS HAD COMPLETED TRAINING BY 7/77, AND ONLY 58 WERE IN PROCESS. LOCAL BUSINESS FIRMS AND THE GOVERNMENT OF ZAMBIA PROMISED TO DONATE FACILITIES FOR THE PROJECT, BUT THIS HAD NOT MATERIALIZED AT THE TIME OF AUDIT. IN 4/77 A PRIVATE HOME WAS RENTED AND CONVERTED INTO CLASS ROOMS AND OFFICES. THE 4-MEMBER TECHNICAL COORDINATING TEAM TO BE SUPPLIED BY OIC/I WAS NOT COMPLETE UNTIL 2/77. IT WAS PLANNED THAT ALL 4 MEMBERS OF THE TEAM WOULD BE IN COUNTRY BY 7/76. PROJECT OUTPUTS AND EXPENDITURES ARE NOT GOING TO MEET ORIGINALLY SCHEDULED TARGETS. AID/W AND OIC/I SHOULD REVISE PROJECT OUTPUTS AND FINANCES TO REFLECT REALISTIC EXPECTATIONS. OIC RECORDS WERE KEPT IN SUCH A WAY AS TO PRECLUDE AUDIT. COST CERTIFICATIONS BY OIC/I DID NOT HAVE ADEQUATE SUPPORTING DOCUMENTATION SINCE RECEIPTS OR OTHER EVIDENCE OF EXPENDITURE HAD NOT BEEN KEPT. OIC/ZAMBIA SHOULD RETAIN COPIES OF ALL DOCUMENTATION SUPPORTING EXPENDITURES. AID/W SHOULD ISSUE A BILL FOR COLLECTION OF ANY REIMBURSEMENTS FOUND INADEQUATELY SUPPORTED. A VEHICLE WAS PURCHASED WITH GRANT FUNDS EVEN THOUGH NOT AUTHORIZED BY THE GRANT AGREEMENT. AID/W SHOULD REQUEST REIMBURSEMENT. A LOCAL OIC TRAINING ADVISOR ADMITTED TO MISAPPROPRIATING GRANT FUNDS FOR PERSONAL USE AND WAS FIRED. OPERATIONAL AND FINANCIAL REPORTS WERE NOT BEING SUBMITTED TO THE US EMBASSY IN LUSAKA AND TO AID/W AS REQUIRED BY THE GRANT AGREEMENT.