OPPORTUNITIES INDUSTRIALIZATION CENTERS INTERNATIONAL, INC. CONTRACT NO. AID/AFR-653, GRANT NO. AID/PHA-1128, AUDIT REPORT NO. 766-165

OICI is under contract with AID to assist in establishing Opportunities Industrialization Centers (OIC"s) in Ghana, Nigeria, Kenya, and Ethiopia. OIC"s are vocational training centers patterned after an approach proven successful in many US cities: OIC activities include training of the young hard-core unemployed, remedial education, counseling, job placement, and involvement of the private sector. This audit report reviews allegations against OICI which were submitted to AID by a former bookkeeper of the company. The auditors held meetings with OICI personnel, former OICI employees, and analyzed personnel and financial records. The OICI central office appeared to be overstaffed. The central office has 11 professional and 6 secretarial and administrative employees to support a total of 16 US field staff in 4 African countries. Auditors recommend that OICI abolish the positions of administrative assistant, procurement officer, and 2 secretaries. OICI"s high personnel turnover has resulted in excessive travel and transportation costs to AID. After reviewing files of 57 separated employees, the authors concluded that the major reason for abrupt and accelerating separations was the unstable environment created by the former OICI International Director. His poor management practices caused many of the hostilities cited in the files and led to an atmosphere of job insecurity. With the appointment of a new International Director, the situation should improve. OICI should also obtain professional assistance in the areas of recruitment and personnel policies. OICI is principally AID funded. Cost overruns not approved by AID and contract costs disallowances will seriously impair OICI"s cash flow and solvency. Authors express concern that OICI may not have the financial capability to continue the project and achieve AID"s objectives. Past coordination between AID and OICI was poor. AID should help OICI in establishing procedures that will identify and control OICI actions requiring AID approval.