Philippines freshwater fisheries development project

Audit report covers the period 3/79-12/82 and is based on a review of financial records, interviews with USAID/P and Government of the Philippines (GOP) personnel, and a site visit. The project is over 2 years behind schedule. Only 556 farmers are practicing aquaculture, yearly fingerling distribution is 2 million (vs. life-of-project targets of 7,500 and 20 million, respectively), and all of the 133 farmers and extension workers trained need further training. Shortfalls are due to unrealistic project goals, erroneous assumptions by project planners, and the project"s failure to develop a system for meeting operating expenses on time. Construction of a fish hatchery, and administrative, maintenance, and security buildings, staff housing, and a road system was seriously delayed by disputes between two GOP agencies over administration of construction and the Bureau of Fisheries and Aquatic Resources" (BFAR"s) failure to pay construction workers on schedule. Failure to complete project facilities in turn delayed the delivery of fingerlings to farmers and may cause a serious staffing problem. In addition, the GOP is unlikely to fund further construction. Implementation was further hampered by the BFAR"s failure to coordinate project activities with other Philippine organizations involved in aquaculture and to properly control $350,000 worth of commodities procured. An inventory control system was not instituted until 2 years after commodities began arriving, expensive equipment was improperly stored and exposed to the elements, and systems for controlling project vehicles and tracking U.S. government excess property were not set up. In addition, the BFAR has not adequately controlled proceeds from the sale of fish fry and fingerlings to farmers. Mission accounting records for P.L. 480 funds were contradictory, showing a release of 5,000,000 pesos when 8,855,000 pesos may actually have been released. Finally, the GOP has provided only 77% of life of project funding and only 38% of funds requested by BFAR for 1983, resulting in shortages of essential commodities and labor. Twelve recommendations are made.