Summary

SAI Sao Tome and Principe assessed the compliance and transparency of the distribution (donation) and sales processes for food aid (rice) from Japan.* Auditors found the following deficiencies: - absence of any official documents regulating the distribution and sale of rice; - inadequate organization and irregular inventory control at government warehouses (Armazém de Fundo de Estabilização de Preços); - lack of requirements for applications for donations and food aid purchases, as well as lack of transparent criteria for the selection of government and/or charitable institutions and traders; - discrepancies between the declared and actual volumes of food aid shipped; - inconsistencies in sales-related calculations. SAI Sao Tome and Principe recommended developing and approving a regulatory framework; properly organizing document flow, conducting regular inventory counts, and ensuring open and transparent reporting; establishing preliminary application requirements and developing transparent selection criteria. _________________________________ * Japanese rice donations to Sao Tome and Principe have been ongoing for 20 years as part of a strategic partnership between the two countries. Each year, the Japanese government determines the actual value of the food aid and then converts it into a specific volume of rice supplied.