ENGAGEMENT OF INDIVIDUAL CONSULTANT TO UNDERTAKE EXTERNAL PROCESS AUDIT OF THE SADP GRANTS PROGRAM FOR SADPII 2022

Specific Procurement Notice

Expression of Interest (Individual Consultant)

(One-Envelope Bidding Process)

Country: Kingdom of Lesotho

Name of Project: Smallholder Agriculture Development Project II

Contract Title: ENGAGEMENT OF INDIVIDUAL CONSULTANT TO UNDERTAKE EXTERNAL PROCESS AUDIT OF THE SADP GRANTS PROGRAM FOR SADPII 2022

Loan No.: P165228

Reference No: LS-MAFS-431775-CS-INDIV

BACKGROUND

External process audit of the SADP grants program

The Government of Lesotho is currently implementing the Smallholder Agriculture Development Project (SADP) with funding from the World Bank and the International Fund for Agricultural Development (IFAD). The project includes a program of grants provided on a competitive basis to farmers and rural businesses to grow their business introducing technological innovations and improved business practices. The project enters into an agreement with the beneficiaries. The Recipient shall open and maintain an account or subaccount (the Grant Account), and may withdraw from there for expenditures in respect of the reasonable cost of goods, works and services required for the Activities and financed out of the proceeds of the Grant in accordance to Annex II of this Agreement (Project Budget). Expenditure of grant funds must adhere to the terms and items defined the grant recipient's approved grant agreement. When transfers among the items of the approved budget become necessary and the estimated change is more than 20% of the value approved in the agreement’s budget, the grant recipient should request the approval of the Project Management Unit (PMU) in coordination with the Matching Grants Committee (MGC). When the grant recipient wishes to establish a new line item that affects the technology or business initiative, he/she/it shall promptly request in writing authorization from the PMU/MGC and all such records are to be kept at the PMU in a file folder maintained for each grant beneficiary.

The Grants program is regulated by a Grant Manual which identifies the various actors in the process of grant approval and implementation. The Matching Grants Committee (MGC) holds right to terminate grants that do not follow the principles lined out in the grant manual.

In the external audit of SADP 2 of 2022, the Accountant General has identified grants for which the measures defined in grant manual and the grant agreement were not systematically followed.

Objective

The objective of this assignment is to get a better handle of the application of the processes defined in the grant manual and the formulation of the grant agreements with each beneficiary and the extent to which the principles and clauses in the agreement are not followed and the documentation contained in the file folders of each beneficiary. The project would like to get a better sense of the frequency with which there is misapplication of the grant agreement and the grant manual and measures that would need to be taken to correct such occurrences. As such, the assignment will verify whether expenditures funded over the project implementation period are eligible as outlined in the grant agreements; whether funds have been used for the purpose intended with due regard for economy and efficiency; and whether the grants processes and controls sufficiently address the risk of fraud and corruption in the administration and payment of grants.

SADP II is looking for a consultant to look into this issue, prepare a detailed report that will be submitted to the Government of Lesotho, World Bank and IFAD management to make an informed decision. The consultant will report to the Project Manager in the PMU but will also communicate directly with the World Bank team should the latter have any questions on the engagement. The World Bank team should be copied on communications from the consultant to the PMU

The SADP II now invites Individual Consultants to submit as follows:

Expressions of interest accompanied by a detailed CV must be delivered in a written form to the address below by 16:00hrs local time on 2nd July 2024 clearly marked “ EXPRESSION OF INTEREST FOR ENGAGEMENT OF INDIVIDUAL CONSULTANT TO UNDERTAKE EXTERNAL PROCESS AUDIT OF THE SADP GRANTS PROGRAM FOR SADPII 2022 ”

To: Procurement Office

Ministry of Agriculture and Food Security SADP II

Department of Livestock Services -Moshoeshoe 11

P.O. Box 24

Maseru 100 Lesotho.

Only shortlisted candidates will be notified.

• Bidding will be conducted through international competitive procurement using an Individual Consultant Selection as specified in the World Bank’s “Procurement Regulations for IPF Borrowers” PROCUREMENT IN INVESTMENT PROJECT FINANCING Goods, Works, Non-Consulting and Consulting Services Fifth Edition September 2023 and is open to all eligible Bidders as defined in the Procurement Regulations.

• Interested eligible Bidders may obtain further information from the Ministry of Agriculture and Food Security – SADP II situated at Department of Livestock Services Moshoeshoe II Maseru, Procurement Office at [email protected] or at 22312578.

Website to access EOI: https://sadpii.org.ls/opportunities/

• CONDITIONS:

• No late bids will be accepted beyond the stipulated deadline.

• Attention is drawn to the Procurement Regulations requiring the Borrower to disclose information on the successful bidder’s beneficial ownership, as part of the Contract Award Notice, using the Beneficial Ownership Disclosure Form as included in the bidding document.