M84 million not utilized at wool, mohair project

MASERU –A STAGGERING M84 million out of a total budget of M113 million under the Wool and Mohair Project (WAMPP) was not utilised, according to the latest report by the Auditor-General.
The report was for the year ending March 31, 2018.

The report shows that wool and mohair fiber handling and marketing, improved livestock production and management and climate smart range land management recorded the lowest spending capacity at 11 percent, 16 percent and 28 percent respectively.
“Under-spending can indicate slow implementation of planned activities which could lead to non-achievement of objectives and donors withdrawing their support,” the report said.

It says management said low spending was caused by delays and or failure in meeting conditions preceding the first withdrawal to meet conditions on time.
Lucy Liphafa, the Auditor General, in the report recommended that management should ensure that budget performance is reviewed monthly or quarterly in order to monitor progress per activity.

Liphafa says an amount of M1 million was paid as daily subsistence allowance at the unauthorised rate of M750.
These allowances were paid to DRRM participants and Department of Range staff from November 2017 to March last year, she said.

The report shows it was noted that the Project Steering Committee (PSC) had deliberated on this issue before in their meeting held on 29th June, 2017 and agreed to “put the matter in abeyance”.
“I recommended that management should draw up a policy regarding allowances so as to avoid misuse of project funds,” the report reads.
Generally, the project performance was not satisfactory.

The Ministry of Small Businesses Development, Cooperatives and Marketing is responsible for technical aspects of wool and mohair processing and marketing and the development of cottage industries.
Liphafa says in February 2018, 16 vehicles were purchased at a cost of M9 million.

She says documents relating to registration details, that is, models, registration numbers, engine and chassis numbers, ownership, insurance and service plan were not availed to auditors for verification that they were procured for the project at the cited amount.

She said the project’s administrator only produced the distribution list of vehicles to drivers in the districts.
It was further established that these motor vehicles were not registered in the Asset Register Report as at 31 March last year and as such, location or date of their acquisition could not be confirmed, the report states.
Liphafa says the WAMPP also rented several vehicles to carry out activities in the districts without authority.
There were also no policies, rules and regulations guiding how the vehicles should be managed.

She says the unavailability of motor vehicles’ registration documents and vehicles not recorded in the Asset Register might lead to misuse and theft of vehicles.
She says payments amounting to M407 797 from the Fund for International Development (OFID) and M2 million from Adaptation for Smallholder Agriculture Programme funds were made without requisitions and purchase orders attached.

“I could not verify whether payments made were for goods and services requested and ordered,” Liphafa says.
She argues that payments without requisition forms and purchase orders could result in payment of goods and services not ordered or not meeting the project requirements.

Majara Molupe