April 16, 2014
A new report from USAID’s Office of the Inspector General (IG) found that a U.S. government program to build thousands of new homes in Haiti after the earthquake of 2010 is woefully behind schedule and over budget, reports the Associated Press. The report’s findings echo those made by the Government Accountability Office in June 2013. USAID’s housing program was also the subject of an investigation published in the Boston Review in January 2014 by HRRW contributor Jake Johnston.
The IG’s audit found that USAID “did not achieve its goals” of providing permanent housing for Haitians and that “the mission had substantially completed construction of only 816 of the planned 4,000 houses—21 percent of the goal.” To compensate for the shortfalls, USAID increased funding for the project from $55 to $90 million and extended the deadline from December 2012 to October 2014. Still, the IG report found that, “it is unlikely that USAID will be able to meet its original goals even by the new target dates.” USAID mission director John Groarke told the AP that USAID “will now try to build homes through the use of mortgages.”
The IG’s audit takes USAID to task for failing to monitor quality control and environmental mitigation plans put forward by the contractors tasked with carrying out the project. The IG found that, for example, cement testing was improperly documented and that USAID “personnel did not review the contractor’s quality control procedures.” This could lead to “the use of substandard material in USAID-funded construction projects, affecting structural integrity,” according to the IG.
The IG also found that while the contractor tasked with monitoring environmental mitigation, CEEPCO, consistently found faults with the work of Thor Construction, tasked with building 750 of the new homes, USAID staff failed to follow up or adequately address the concerns. While CEEPCO, “issued citations” to Thor, the IG found that USAID “did not do detailed follow-up” on the problems identified.
Despite the project being over budget and behind schedule, the IG found that USAID had failed to even conduct basic performance evaluations of any of the four contractors involved in the program. Per contracting regulations, the evaluations were due between July 2012 and April 2013, yet had still not been completed by the time of the IG’s audit.
The audit from the IG is the latest to find that USAID has failed to adequately monitor its contractors and grantees in Haiti, resulting in substandard outputs. Responding to these findings, in December 2013 the House of Representatives passed the Assessing Progress in Haiti Act, which calls for greater accountability and transparency in USAID’s programs in Haiti. The bill is currently in the Senate Foreign Relations Committee.