CAB129-37 — Page 298

The

Page 298 supply position and thereby to counteract the effect on morale, which the frustration, resulting from continued difficulties, was having on the staff. difficulties of commencing an enterprise of this magnitude on a basis of improvisa- tion, without a prior adequate period of preparation, were having their effect and had resulted in:--

(i) An incomplete overall plan of operation;

(ii) incomplete integration between the operations ;

(iii) over-centralisation and the absence of an adequate administrative

machine.

5. All these circumstances rendered the transfer of day to day management to the Corporation at the earliest possible date very desirable. Not having been submerged in the detailed day to day decisions, the Corporation was better placed to see the Scheme in perspective.

6. In normal circumstances the transfer of responsibility would have been accompanied by detailed audited accounts at the date of transfer, but, in the circumstances in which the Scheme was started it was apparent that there must be many gaps in the accounting records so as to make the preparation of such complete accounts impracticable.

For these reasons the Corporation had to agree to take over on the basis of a -skeleton check of major assets only.

7. Some of the more serious problems which the Corporation has to meet

are:-

(i) the gravely inadequate repair and maintenance services for the tractors,

agricultural machines and motor transport of all kinds ;

(ii) the absence in East Africa of a proper system for the receipt, pricing

and physical custody of all the various stores required;

(iii) the inadequate organisation for controlling expenditure in East Africa; (iv) the inadequacy of control of contractors' work.

8. The purpose of this memorandum is to set out the more serious problems with which the Corporation was faced at the time it assumed control of the Scheme, without attempting to set out the underlying factors which had caused. them. It does not imply criticism of the management of the Scheme by the Managing Agents during the period of their responsibility. Further measures beyond those already taken to rectify the present position are in hand but the Minister should understand that a considerable time must elapse before these measures can become fully effective.

L. A. PLUMMER,

158

September 23, 1948.

Chairman.

96

Page 298

Page 298

Arya

:

J

I

"]