Memorandum report on the economic production, employment and recovery programs in Jamaica

Audit report covers the period 1/81-3/82 and is based on document review and discussions with project personnel. All $78 million in A.I.D. loan funds has been disbursed, thus achieving the project"s primary purpose. The program to stimulate the economy - a long-term objective at any rate - is still in its early stages and cannot be evaluated at this time; certain difficulties should be noted, however. Bank of Jamaica (BOJ) import reports have not been submitted on time. The first was 60 days late and in addition lacked the name of the importers and supporting documentation for marine insurance, shipping, and ancillary costs. At the time of the audit, USAID/J had not reviewed the report to test it for ineligible items or suppliers. The second report, due 3/25/82, had not been received as of 4/22/82. The auditor questions the detailed nature of the report format, which the BOJ finds quite burdensome, and recommends that USAID/J amend the terms of the two Loan Agreements to simplify recordkeeping and import reporting and establish procedures for timely GOJ submission of reports. Further, the GOJ has neither deposited, as agreed, JM$ 67.6 million in local currency in a special BOJ account for use in development activities, nor met with USAID/J to determine how these funds are to be used. It is recommended that USAID/J obtain a confirmed bank statement of the GOJ"s deposit of the local currency funds and negotiate with the GOJ on their expenditure in order to ensure the desired impact of the funds on the economy. Further, the GOJ has neither deposited, as agreed, JM$ 67.6 million in local currency in a special BOJ account for use in development activities, nor met with USAID/J to determine how these funds are to be used. It is recommended that USAID/J obtain a confirmed bank statement of the GOJ"s deposit of the local currency funds and negotiate with the GOJ on their expenditure in order to ensure the desired impact of the funds on the economy.