DTIC ADA577944: Special Inspector General for Afghanistan Reconstruction (SIGAR)

7.8 MB·English

by  Defense Technical Information Center

Sigar sigar
SpeCial inSpeCtor general Si Special Inspector General for Jan 30
g
for afghaniStan reConStruCtion a
Afghanistan Reconstruction 2013
r

2530 Crystal drive
|

arlington, Va 22202 Q
u
www.sigar.mil a
r
t
e
r
l
y

r Quarterly report to the united StateS CongreSS
e
p
o
r
t

t
o

t
h
e

u
n
i
t
e
d

S
t
a
t
e
S

C
o
n
g
r
e
S
S

|

J
a
n
u
a
r
y

3
0
,

2
0
1
3
1
Jan2013_Cover.indd 1 1/15/2013 9:42:47 AM
Report Documentation Page Form Approved
OMB No. 0704-0188
Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington
VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it

does not display a currently valid OMB control number.
1. REPORT DATE 3. DATES COVERED
30 JAN 2013 2. REPORT TYPE 00-00-2013 to 00-00-2013
4. TITLE AND SUBTITLE 5a. CONTRACT NUMBER
Special Inspector General for Afghanistan Reconstruction (SIGAR)
5b. GRANT NUMBER
Quarterly Report to the United States Congress
5c. PROGRAM ELEMENT NUMBER
6. AUTHOR(S) 5d. PROJECT NUMBER
5e. TASK NUMBER
5f. WORK UNIT NUMBER
7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION
Special Inspector General for Afghanistan Reconstruction (SIGAR),2530 REPORT NUMBER
Crystal Drive,Arlington,VA,22202
9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR’S ACRONYM(S)
11. SPONSOR/MONITOR’S REPORT
NUMBER(S)
12. DISTRIBUTION/AVAILABILITY STATEMENT
Approved for public release; distribution unlimited
13. SUPPLEMENTARY NOTES
14. ABSTRACT

15. SUBJECT TERMS
16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF 18. NUMBER 19a. NAME OF
ABSTRACT OF PAGES RESPONSIBLE PERSON
a. REPORT b. ABSTRACT c. THIS PAGE Same as 210
unclassified unclassified unclassified Report (SAR)
Standard Form 298 (Rev. 8-98)
Prescribed by ANSI Std Z39-18
The National Defense Authorization Act for FY 2008 (P.L. 110-181)
established the Special Inspector General for Afghanistan
Reconstruction (SIGAR).
SIGAR’s oversight mission, as defined by the legislation, is to provide for the
independent and objective
• conduct and supervision of audits and investigations relating to the programs
and operations funded with amounts appropriated or otherwise made available
for the reconstruction of Afghanistan.
• leadership and coordination of, and recommendations on, policies designed
to promote economy, efficiency, and effectiveness in the administration of the
programs and operations, and to prevent and detect waste, fraud, and abuse
in such programs and operations.
• means of keeping the Secretary of State and the Secretary of Defense fully
and currently informed about problems and deficiencies relating to the
administration of such programs and operation and the necessity for and
progress on corrective action.
Afghanistan reconstruction includes any major contract, grant, agreement,
or other funding mechanism entered into by any department or agency of the
U.S. government that involves the use of amounts appropriated or otherwise made
available for the reconstruction of Afghanistan.
Source: P.L. 110-181, “National Defense Authorization Act for FY 2008,” 1/28/2008.
(For a list of the congressionally mandated contents of this report, see Section 3.)
Cover photo:
Children in Farah Province, Afghanistan, play with kites given to them by Afghan Local Police officers. Afghan children get water from a village well, one of more than 3,000 built or rehabilitated with USAID funds to
(DoD/USMC photo) reduce waterborne diseases that kill 40,000 children each year. (USAID photo)
Jan2013_Cover.indd 2 1/15/2013 9:42:50 AM
SIGAR OVERSIGHT PRESENCE IN AFGHANISTAN
BADAKHSHAN
JOWZJAN KUNDUZ
BALKH TAKHAR
SAMANGAN
FARYAB BAGHLAN
SAR-E PUL PANJSHIR
NURISTAN
BADGHIS
PARWAN KAPISA KUNAR
BAMYAN
LAGHMAN
KABUL
HERAT
WARDAK
NANGARHAR
GHOR LOGAR
DAYKUNDI
PAKTIYA
GHAZNI KHOWST
URUZGAN
FARAH
PAKTIKA
ZABUL
NIMROZ Current SIGAR offices
HELMAND
KANDAHAR Provinces where SIGAR has conducted
audit, inspection, and investigation work
SPECIAL INSPECTOR GENERAL FOR
AFGHANISTAN RECONSTRUCTION
I am pleased to submit SIGAR’s eighteenth quarterly report on the status of the U.S.-
funded reconstruction effort in Afghanistan.
We find ourselves today at a critical juncture. Two years from now, the U.S. military
will have ended its combat mission in Afghanistan, a new Afghan president will have
been elected, and security responsibilities will have been transferred to the Afghan
government. These events will fundamentally change the landscape of the Afghanistan
reconstruction effort, and it is the recently sworn-in 113th Congress that will preside
over this most important period. The members of this Congress will ultimately deter-
mine the extent of U.S. assistance to support the Afghan security forces, to strengthen
the Afghan economy, and to promote good governance.
The Congress has appropriated nearly $89 billion to rebuild Afghanistan—more
than the United States has ever spent on the reconstruction of any other nation. Of
the nearly $13.8 billion appropriated to four of the largest reconstruction funds for
FY 2012, about $8.6 billion remains to be obligated. The President’s FY 2013 budget
request includes nearly $10 billion for Afghanistan’s reconstruction. If appropriated,
these funds will bring the amount available to implementing agencies for obligation to
more than $19 billion. We must ensure these funds are spent judiciously and achieve
desired outcomes.
In light of the narrowing window of opportunity as U.S. forces draw down in
Afghanistan and the unprecedented investment of taxpayer dollars, SIGAR has been
examining what we have learned about Afghan reconstruction and how our work can
ensure that these remaining funds are used wisely.
While there has been major progress in Afghanistan, SIGAR’s work since 2009 has
repeatedly identified problems in every area of the reconstruction effort—from inad-
equate planning, insufficient coordination, and poor execution, to lack of meaningful
metrics to measure progress. We have found delays, cost overruns, and poor construc-
tion of infrastructure projects. We have also found U.S.-funded facilities that are not
being used for their intended purposes. These problems have resulted in lost opportu-
nities and in incalculable waste, but they have also presented opportunities to learn.
Key Questions
Based on our work and that of other Inspectors General and the Government
Accountability Office, we want to underline the importance of the following questions
which can help guide decision makers as they consider whether and how best to use
the remaining reconstruction funds. Section 1 of this report discusses these questions in
more detail:
• Does the project or program make a clear and identifiable contribution to our national
interests or strategic objectives?
• Do the Afghans want it and need it?
• Has it been coordinated with other U.S. implementing agencies, with the Afghan
government, and with other international donors?
• Do security conditions permit effective implementation and oversight?
• Does it have adequate safeguards to detect, deter, and mitigate corruption?
2530 CRYSTAL DRIVE ARLINGTON, VIRGINIA 22202
• Do the Afghans have the financial resources, technical capacity, and political will to
sustain it?
• Have implementing agencies established meaningful, measurable metrics for deter-
mining successful project outcomes?
To the extent agencies can answer these questions in the affirmative, we believe
that a project or program has a better chance of achieving its objectives. However, if
the implementing agencies cannot answer these questions in the affirmative, we also
believe they need to reevaluate the project. If they still choose to proceed with it, they
need to clearly articulate and justify their reasons for doing so.
SIGAR will also be considering these fundamental questions through our audits,
investigations, and inspections. We will be examining project justifications, and we
urge Congress to do the same, because nothing is more wasteful at this critical junc-
ture than an unwarranted project or one that realistically has no chance of success.
SIGAR is particularly concerned about the effect the military drawdown will have
on our ability to oversee reconstruction spending. SIGAR and other oversight agen-
cies depend in part on military transport and protection in regions outside Kabul.
The shrinking U.S. military presence is already making it more difficult to visit
reconstruction projects in remote locations. Every government agency implementing
reconstruction projects must immediately develop plans to mitigate the challenge of
overseeing reconstruction in insecure areas. SIGAR will be reviewing those plans and
developing one of its own to ensure that U.S. taxpayer dollars are protected.
Congress gave SIGAR broad responsibilities, empowering us to look at all aspects of the
reconstruction effort across departmental and mission boundaries, and to provide recom-
mendations on policies to promote the efficiency and effectiveness of the reconstruction
effort. We take this mission seriously and look forward to supporting implementing agen-
cies and Congress to achieve ultimate reconstruction success in Afghanistan.
Respectfully,
John F. Sopko
Special Inspector General for Afghanistan Reconstruction
2530 CRYSTAL DRIVE ARLINGTON, VIRGINIA 22202
TABLE OF CONTENTS
SECTION 1
1 KEY QUESTIONS
3 Key Questions for Decision Makers
11 Implications for Policy and Practice
SECTION 2
13 SIGAR OVERSIGHT ACTIVITIES
15 Audits
28 Inspections
33 Investigations
36 Quarterly Highlight: Investigating Fuel Theft
44 Special Projects
46 SIGAR Budget
47 SIGAR Staff
SECTION 3
49 RECONSTRUCTION UPDATE
51 Overview
55 Status of Funds
69 Security
95 Governance
123 Economic and Social Development
TABLE OF CONTENTS
SECTION 4
155 OTHER AGENCY OVERSIGHT
158 Completed Oversight Activities
164 Ongoing Oversight Activities
APPENDICES & ENDNOTES
178 Appendix A: Cross-Reference of Report
to Statutory Requirements
182 Appendix B: U.S. Funds for Afghanistan
Reconstruction
184 Appendix C: SIGAR Written Products
188 Appendix D: SIGAR Investigations and Hotline
191 Appendix E: Abbreviations and Acronyms
194 Endnotes
“This year, we’ll mark another
milestone—Afghan forces will take
the lead for security across the entire
country. And by the end of next year,
2014, the transition will be complete—
Afghans will have full responsibility for
their security, and this war will come
to a responsible end.”
—U.S. President Barack Obama
Source: White House, Joint Press Conference by President Obama and President Karzai, January 11, 2013.
1
KEY
QUESTIONS
1