PL-480 TITLE II ACTIVITIES IN LESOTHO

This audit report covers the period 1/79-9/80 and was based on a review of files, interviews and site visits. The Catholic Relief Service"s (CRS) operations were not sufficiently monitored nor provided with adequate technical assistance. The Regional Food for Peace Officer in Lusaka, Zambia visited Lesotho only once. USAID attributed inadequate monitoring to insufficient manpower. The USAID project officer was unaware that quarterly reports should be sent to AID/W Food for Peace Office (PDC/FFP) and PDC/FFP did not remind USAID of these duties. Consequently, the last call forward (CF) advice to PDC/FFP was in 8/78. PDC/FFP should revise CF guidelines to clarify what AID/W does after receiving CF"s from the field. About 71% of the project"s recipients are pre-school children and mothers. The CRS pre-school program used the highly effective Growth Surveillance System and was attended by 140,000 particicpants. CRS clinic reporting procedures should be replicated elsewhere. Data on Food for Work (FFW) worker selection were inadequate to judge if criteria were followed. Nonetheless, Title II food was used for ineligible activities. CRS/Lesotho must revise guidelines or end the CRS/Lesotho FFW program. The simultaneous arrival of shiploaded Title II supplies created logistical problems resulting in rail demurrage charges. Action should be taken to minimize these costs. In 1980, there were two cases of Title II food being stolen and neither incident was reported to the Inspector General. Reporting procedures must be drafted to ensure prompt reporting. CRS/Lesotho claims against the Government of Lesotho"s (GOL) Food Management Unit will prove ineffective. USAID should assume responsibility for these claims and press GOL for reasonable restitution. USAID"s views the $10,000 claims limitation as applicable against individuals. USAID should instead comply with the A.I.D. Handbook regarding this matter. Additional warehouse space will be provided and the grant should be amended to state that USAID financed these facilities.