CAB129-37 — Page 226

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CHAPTER 5

FINANCE AND ACCOUNTS

371. At the time the Overseas Food Corporation took control, over £7,000,000 had already been spent and expenditure was continuing at an increasing rate. The accounts organisations of both the Managing Agency and many of its Contractors were unequal to the heavy demands made on them.

372. After a review of the situation it became apparent that immediate action was required, especially in the following directions:-

(a) to introduce a proper accounts system, capable of providing the Regional Managers, the Central Management in East Africa, and the Board in London with the accounting information required for the administration of the Corporation;

(b) to recruit staff of the right calibre and in adequate numbers to clear up the backlog, to keep abreast of the current work, to introduce the new accounts system, and to ensure its continued efficient operation;

(c) to set up an Internal Audit Department, whose main function in the early stages would be to audit the Contractors' books and control their expenditure; and

(d) to set up a financial control of expenditure.

East African Accounts

373. In July, 1947, Cooper Brothers & Co., Chartered Accountants, had been commissioned to examine the operations of the Groundnuts Scheme and to recommend what system of accounts should be adopted. They carried out an extensive investigation and in February, 1948, submitted their report and recommendations.

374. Owing to the shortage of staff it was not found possible to introduce immediately these recommendations whereby decentralised accounting organi- sations were to be set up in each Region.

375. The shortage of experienced accountants made recruitment slow and it was only towards the end of the year that the necessary complement of staff was available in East Africa.

376. To facilitate disposing of the arrears of work caused by lack of staff and to expedite the preparation of the Balance Sheet at March 31, 1949, it was decided to centralise the Regional accounts and to defer adopting the recommendation made by Cooper Bothers & Co. for a decentralised system of accounts.

377. This centralisation has been carried out and the arrears are being eliminated.

London Accounts

378. The Accounts Department in London had virtually to be created. This was not due to any omission on the part of the Managing Agency, but to the fact that during their period of control the bulk of accounting work was done for them by their parent company, the United Africa Co. Limited.

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