Review of selected AID financed activities in Upper Volta

and generated through sales of P.L. 480, Title II commodities. Audit report covers the period l976-8l and is based on document review and discussions with GOUV and A.I.D. officials. After 5 years and the expenditure of $3.5 million of the $4.8 million obligated by A.I.D., little progress has been made in the development of a technical package to include the use of animal traction, new seed varieties, mineral fertilizers, insecticides, and fungicides to increase small farm production. Extension agents were often unreliable, poorly motivated, and unskilled. Although training was a key project objective, U.S. advisors had to manage the day-to-day operation of the project, spending only $20,000 of the $153,614 programmed for training and producing no Voltaics capable of taking over the project. The staff of the GOUV"s Eastern Organization for Rural Development (EORD) increased from 88 to 402, but as a result of the absence of both an effective training program and increased budgetary support, the EORD diverted $238,000 from A.I.D. for unauthorized salary payments. The diversion for operating expenses of an additional $84,786 earmarked for the Marketing Fund and the non-repayment of 75% of loans are undermining the viability of this fund and of the Rural Credit Revolving Fund. The GOUV"s National Cereals Office (OFNACER) has made no deposits of or reports on Title II commodity sales for 6 years, although A.I.D. and the GOUV agree that the account should have had about $2.6 million in 1978. The GOUV on 5/22/80 deposited this sum but proceeded to withdraw the the entire amount 2 days later; as of 6/80 there was no trace of these funds. Similarly, no deposits or reports have been made on $1.5 million worth of Title II foods sold in 1977 and 1979. Recommendations are to reduce A.I.D. funding during l98l-85, to emphasize qualitative improvements, and to require the GOUV to account for and refund misappropriated funds prior to continued A.I.D. financing.