Major implementation problems confront action Ble in Mali

Audit report (prepared after project funding was suspended due to mismanagement by the implementing agency, Action Ble -- AB), covers the period 7/78-4/81 and is based on document review and discussions with Government of Mali (GRM), USAID/M, and foreign government officials. AB"s accounting system is deficient and its lack of inventory controls has left over $1 million worth of commodities unaccounted for. Further, AB used as operating funds monies intended for a revolving credit fund (RCF) to help farmers purchase irrigation pumps (although 175 pumps were distributed to farmers)--a mismanagement which seriously jeopardizes project continuation after A.I.D. funding ceases. Contracts valued at $286,397 have been awarded without competitive bidding, and 425 pumps were shipped to the project site without USAID/M approval and left in an open field. Inadequate staffing prevented USAID/M, despite its knowledge of AB"s problems, to ward off the funding suspension. USAID/M has established procedures to improve its financial monitoring of projects and has required, as a condition for lifting the suspension, that AB implement acceptable accounting and management systems and hire a qualified accountant; auditors concur with both actions. Among the report"s 22 recommendations are that USAID/M: (1) revise AB"s operational budget and issue a project implementation letter which reflects material changes in the logframe; (2) determine the balance of the RCF; (3) inventory project commodities, help AB develop an inventory control system and procurement plan and release no commodities to AB until it is certain they can be used; (4) require AB, as a condition for lifting the suspension, to provide adequate storage for pumps; (5) assess the GRM"s procurement capability for the project and require the GRM to establish the required bank account for the RCF, provide storage space for the pumps, and pay for the repair of damaged pumps; (6) reassert the management role of the Project Site Coordinator; (7) arrange at once for a project evaluation and perform future evaluations as planned; (8) make sure project managers put agreements with the GRM in writing; and (9) delineate USAID/M procurement responsibilities.