US says $90mn aid to Pak at risk of 'waste or misuse'

The United States Office of the Inspector General (OIG) has reportedly pointed that the country's 90 million dollar Kerry-Lugar aid to Pakistan is at an 'increased risk of waste or misuse' as the NGO appointed for disburse isn't competitive.

The OIG has highlighted that the United States Agency for International Development (USAID) chose the Agribusiness Support Fund (ASF), a local NGO, for implementing the project despite knowing its capacity constraints.

The OIG's audit report stated that the USAID granted sole-source award to the ASF even though it had limited experience in issuing grants and managing an 89.4 million dollar project, The Express Tribune reports.

According to the report, the USAID's own first pre-award assessment rated the ASF 'high risk' on account of finances, procurement, information system and internal controls.

Under the Kerry-Lugar Act, the Obama administration has committed 7.5 billion dollars in November 2011, for Pakistan over a period of five years.

The OIG conducted the audit to determine whether the project was facilitating broad-based economic growth and creating jobs and found that there had not been much success in achieving these goals.

The Office of the Inspector General further noted that the ASF lacked the capacity to manage the project and as a result the project is delayed, which would prevent it from achieving the project goals as a result of which, the entire aid could be at a higher risk, the report added.