sigar report - jul 09
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Special Inspector General for Afghanistan ReconstructionSIGAR JULY 200
QUARTERLY REPORT TO THE UNITED STATES CONGRESS
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The National Defense Authorization Act (P.L. 110-181) established the Special Inspector General for Afghanistan Reconstruction (SIGAR).
SIGARs mission is to enhance oversight of programs for the reconstruc-tion of Afghanistan by conducting independent and objective audits,inspections, and investigations on the use of taxpayer dollars and relatedfunds and by keeping the Congress, as well as the Secretaries of State andDefense, currently informed of reconstruction progress and weaknesses.
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, orotherwise made available for the reconstruction of Afghanistan with anyprivate entity to: build or rebuild physical infrastructure in Afghanistan;establish or re-establish political or societal institutions of Afghanistan;provide products or services to the people of Afghanistan. a
Special Inspector General for Afghanistan Reconstruction
SIGAR
Cover Captions (clockwise):An Afghan girl sits outside at her elementary school in Bamyan Province. (SIGAR photo)
An Afghan laborer works on the construction site o a new police academy in Bamyan Province. (SIGAR photo)
Afghans post campaign signs in preparation or the upcoming presidential and provincial council elections, the frst run by A ghanistans Independent ElectionCommission since the Taliban was overthrown (UN photo)
a P.L. 110-181 National Defense Authorization Act for FY 2008, 1/28/2008.
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Special Inspector General
for Afghanistan Reconstruction
July 30, 2009
It is with pleasure that I am submitting to the Congress the ourth quarterly report o the O fce o the Special Inspector General or A ghanistan Reconstruction (SIGAR). This report, which com-
plies with the requirements outlined in Section 1229 o P.L. 110-181, documents SIGARs progresssince the April 30, 2009, quarterly report. It also provides an update on the status o reconstruc-
tion programs in A ghanistan, or which unding since 2002 totals approximately $38 billion.SIGAR has made signifcant progress this quarter. We issued three audit reports and one in-
spection report and have seven additional audits and our inspections well under way. Our o fcealso initiated preliminary inquiries into 23 allegations o raud, waste, and abuse. As o the endo July, we increased our sta rom 32 to 44, and we expect to hire 7 more pro essionals by theend o August. With 11 auditors, 7 inspectors, and 4 investigators currently on board, SIGAR hasincreased its capacity to provide oversight o reconstruction programs. In addition, I made twotrips to A ghanistan and met with o fcials rom the U.S. Embassy, the international community,and the Government o the Islamic Republic o A ghanistan (GIRoA), including President Hamid
Karzai, all o whom are involved in reconstruction e orts.The people o A ghanistan and the international community are ocused on supporting the
upcoming presidential and provincial council elections and improving security. The August 20electionsthe second since the Taliban was removed rom power and the frst conducted by
A ghanistans Independent Election Commission (IEC)are an important milestone in A ghani-stans journey toward establishing a representative government that answers to the needs o itscitizens. The United States has committed signifcant resources to supporting the electoral pro-cess, and SIGAR is making the use o these resources an oversight priority.
In July, SIGAR provided one report to the U.S. Ambassador to A ghanistan, with a recom-
mendation to help strengthen A ghanistans electoral institutions capacity to manage elections.Following the August elections, SIGAR will issue an audit report on the extent to which U.S.and international assistance was used e ectively and another report identi ying lessons learnedthat could acilitate uture elections. We also will produce a report assessing the participation o women in the elections.
More than hal o all reconstruction dollars have been allocated to build the A ghanNational Security Forces (ANSF). SIGARs audit examining the ability o the Combined Security
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Transition Command - A ghanistan (CSTC-A) to monitor contractor per ormance ound thatCSTC-A, which is responsible or the training program, did not have the mechanisms in place toensure unds were managed e ectively and spent wisely. The Commanding General o CSTC-Aconcurred with our recommendations and is acting to establish proper contract management andoversight processes. We are currently examining the controls and accountability mechanisms orthe Commanders Emergency Response Program (CERP) and will complete our audit during thenext quarter.
This quarterly report is divided into our sections. Section 1 discusses recent developments pertaining to reconstruction. Section 2 describes SIGARs completed, ongoing, and plannedwork. Section 3 provides an overview o the status o the reconstruction program under the three
pillarssecurity; governance, rule o law, and human rights; and economic and social develop-mentidentifed in the A ghanistan National Development Strategy (ANDS). Although the U.S.agencies involved in rebuilding A ghanistan provided most o the in ormation in this section,SIGAR also drew on o fcial documents, independent studies, and reports by international organi-zations to compile as complete a picture as possible o the reconstruction e ort in A ghanistan.Section 4 o ers a summary o work done by other oversight agencies.
The Congress recently passed a bill that increased SIGAR unding and also provided a moreexpedient hiring authority. On behal o my o fce, I thank the Congress or providing the fnan-cial resources or SIGAR to success ully conduct oversight o the expanding reconstruction pro-gram. My observations have led me to conclude that strong oversight o this program is critical toachieving U.S. goals in A ghanistan.
Very respect ully,
Arnold FieldsMajor General, USMC (Ret.)Special Inspector General or A ghanistan Reconstruction
2221 Clark Street , Suite 800 Arlington, Virginia 22202
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ISLAMIC REPUBLIC OF AFGHANISTAN
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TABLE OF CONTENTS
SECTION 1 AFGHANISTAN OVERVIEW
Elections 4Security 5Corruption 6International Cooperation 7The A ghanistan-Pakistan Strategy 9Inter-agency Coordination 9
SECTION 2SIGAR OVERSIGHT
Audits 13Inspections 18Investigations 23SIGAR Budget 24
SECTION 3RECONSTRUCTIONUPDATE
Status o Funds 33Security 45Governance 63Economic and Social Development 83
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TABLE OF CONTENTS
SECTION 4OTHER AGENCY OVERSIGHT
Completed Oversight Activities 101Ongoing Oversight 102Other Agency Investigations 109Other Agency Inspections 111
APPENDICESAppendix A: Cross-re erence o Report to
Statutory Requirements 114Appendix B: U.S. Government Appropriated
Funds 118Appendix C: SIGAR Audits 120Appendix D: SIGAR Inspections 121Appendix E: SIGAR Hotline 122Appendix F: Acronyms and Defnitions 123
ENDNOTES 125
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Nangarhar Provincial Reconstruction TeamAn A ghan engineer talks with U.S. Air Force Capt. PaulFrantz during a visit by the Nangarhar provincial recon-
struction team (PRT) to a local metal-working shop. Theteam is responsible or helping the Government o theIslamic Republic o A ghanistan (GIRoA) improve secu-rity and governance and or promoting reconstruction inNangarhar Province. The PRT assesses community needsand then builds schools, government centers, roads,medical capability, and basic in rastructure throughoutNangarhar; it also mentors A ghan government o fcialsand security orces to provide the A ghan people with thestate representation and security they need. (U.S. AirForce photo, SSgt Joshua T. Jasper)
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1Introduction: The Year o Trans erRise in Income
Expanding Iraqi Security AuthorityA ghanistan Reconstruction Update
A ghanistan Audits
A ghanistan Inspections
Reconstruction Teams
The Role o the International Community
Anticorruption E orts
Security
Security Conditions Still Hinder
Reconstruction Activities
Concerned Local Citizen Initiative
Legislative Developments
The Human Toll
AFGHANISTANOVERVIEW
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AFGHANISTAN OVERVIEW
Within A ghanistan, we must helpgrow the economy, while developing
alternatives to the drug trade bytapping the resilience and the ingenuityo the A ghan people. We must support
ree and open national elections laterthis all, while helping to protect the
hard-earned rights o all A ghans. Andwe must support the capacity o localgovernments and stand up to
corruption that blocks progress.
U.S. President Barack Obama 1
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AFGHANISTAN OVERVIEW
AFGHANISTAN OVERVIEWThe U.S. reconstruction mission in A ghanistan has expanded signifcantlysince the last quarterly report o the Special Inspector General or A ghanistanReconstruction (SIGAR) to Congress. U.S. President Barack Obama signed the
Supplemental Appropriation or FY 2009 (P.L. 111-32), raising the U.S. commit-ment to rebuild A ghanistan to over $38 billion. This legislation also provided theadditional unding SIGAR needs this year to conduct its oversight mission. Theadministrations FY 2010 budget request likely will bring the investment in A ghan-istans reconstruction close to $50 billion. As the unding to rebuild A ghanistanincreases, so will the demand or oversight, which is critical, not only to prevent
raud, waste, and abuse, but also to ensure the reconstruction program is as suc-cess ul and cost-e fcient as possible.
Two strategiesthe A ghanistan National Development Strategy (ANDS) andthe new U.S. government policy or stabilizing A ghanistanprovide the rame-work or the U.S. reconstruction e ort in A ghanistan and the work o SIGAR.During this quarter the United States began executing its new strategy, which em-
phasizes inter-agency coordination, international cooperation, and the integration
Special Inspector General or A ghanistan Reconstruction Arnold Fields sat down with BamyanProvincial Governor Habiba Sorabi during his July 2009 visit to A ghanistan. Sorabi is the frst
emale governor o any A ghan province. E orts to improve gender equality in A ghanistan areone o the ocuses o the U.S. reconstruction e ort. (SIGAR photo)
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AFGHANISTAN OVERVIEW
o security and development assistance to promote a more capable, accountable,and e ective government in A ghanistan. In addition to deploying more troopsto improve security, the U.S. government also began recruiting more civilian ex-
perts to expand provincial reconstruction teams (PRTs), district support teams,and the U.S. diplomatic presence in the provinces.
Over the past quarter, the United States has ocused on fve key reconstruc-tion issues: elections, security, corruption, international coordination, and therelationship between A ghanistan and Pakistan. SIGAR has completed work intwo o these areas and has ongoing work in our o them. SIGARs mandate doesnot include assistance to Pakistan. However, SIGAR will be examining the e ecto cross-border programs, when they are implemented, on reconstruction in
A ghanistan.
ELECTIONS
The United States views the August 20, 2009, presidential and provincial coun-cil electionsthe second in A ghanistan since the Taliban was removed rom
power, and the frst to be conducted by the Independent Election Commission(IEC) o A ghanistanas a critical step toward developing a government that isaccountable to its citizens. 3 U.S. and international unding has been provided tohelp A ghanistan build the institutional capacity to conduct not only these elec-tions but also uture elections. Because o the importance attached to elections,SIGAR is conducting a comprehensive audit that will produce our separatereports about aspects o the election process.
SIGAR provided the frst report, containing a recommendation or strengthen-ing the capacity o A ghanistans electoral institutions to manage elections, to theU.S. Ambassador to A ghanistan in July. SIGAR will issue the ollowing addition-al reports over the next several months: 1) an assessment o the extent to whichU.S. and international assistance was used e ectively to support these elec-tions and to develop a sustainable election process; 2) an analysis o the lessonslearned, to improve the process or uture elections; and 3) and an evaluation o the participation o women in these elections.
The U.S. government has provided approximately $120 million to the UnitedNations (UN) or elections support. 4 The UN Development Programmes En-hancing Legal and Electoral Capacity or Tomorrow (UNDP-ELECT), the o fcemanaging and coordinating international donor support, including that romthe United States, has budgeted $224 million to support the elections. USAID is
unding separate election-related projects through a number o local monitoringgroups, as well as through non-governmental organizations (NGOs) such as theInternational Republican Institute, the National Democratic Institute, and theInternational Foundation or Electoral Systems.
The U.S. has no avoritecandidate; our stance isneutral on the outcome.We are encouraging the
A ghans to determine the
issues, demand that can-didates explain the pro-grams, and vote or theuture in an electoral pro-cess that is credible, se-
cure, and inclusive. Theseelections can show con-
tinued evolution toward agovernment that refects
and responds to A ghanpopular will.
Ambassador Richard C.
Holbrooke, Special
Representative or
A ghanistan and Pakistan 2
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AFGHANISTAN OVERVIEW
Voter Registration and Election Sa eguards All A ghan citizens who voted in the 2004 and 2005 elections can use their regis-tration cards or the upcoming elections. The IEC also conducted a our-phase
voter-registration campaign between October 2008 and February 2009 to allow A ghan citizens who had lost their registration cards, moved within the country,or become eligible to vote a ter 2005 to register. The IEC recently re-opened theregistration period or an additional 20 days in all 34 provinces. According to theIEC, more than 4.5 million people, about 38% o whom are women, have regis-tered in the past eight months. Approximately 17 million voter cards are now incirculation.
A number o sa eguards are in place to protect the integrity o the 2009 elec-tions, according to the IEC. Specifcally, the IEC is planning to care ully track
and control the movement o sensitive materials, including ballots; use numberedseals to close ballot boxes; and mark voters fngers with indelible ink to preventindividuals rom voting more than once.
Security or the ElectionsPrimary responsibility or providing security or the elections rests with the
A ghan National Security Forces (ANSF), backed by the International Security Assistance Force (ISAF). A Joint Security Planning Group was established tostreamline planning among the ANSF, the ISAF, the Combined Security Transi-tion Command - A ghanistan (CSTC-A), the IEC, and the UN. This planning groupis addressing issues concerning candidate security, the secure distribution o election materials, the establishment o provincial operations command centers,and security or polling sites.
SECURITY
Security continues to pose a major challenge to the reconstruction e ort in A -ghanistan. The UN reported an increased number o security incidents, especiallyin the southern and eastern parts o A ghanistan, over the past three months. Thesituation in Kandahar, where insurgents attacked the provincial council head-quarters and the governors compound in separate incidents in April and Maythis year, has caused particular concern. 5 During this reporting period the UnitedStates began deploying additional troops to improve security in the troubled
provinces in the south and east, bordering Pakistan. At the same time, the United States also took important steps toward achiev-
ing its primary strategic goal to build A ghan National Army (ANA) and A ghanNational Police (ANP) orces capable o ultimately assuming ull responsibility
or the security o the country. O the approximately $5 billion provided or A -ghanistan reconstruction in P.L. 111-32, more than $3.6 billion will go to train andequip the ANSF. This money will be used to accelerate e orts to build a 134,000-strong ANA and an ANP orce o 86,800 by 2011. More than hal o the $38 billion
U.S. and international groups are provaid to A ghanistan or elections supportin the run-up to the August 20, 2009,presidential and provincial electionsthe frst orchestrated by A ghanistansIndependent Election Commission sincethe Taliban was overthrown. (SIGAR pho
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in reconstruction dollars appropriated since 2002 has been allocated or buildingthe ANA and ANP.
CSTC-A, in conjunction with the Government o the Islamic Republic o A ghanistan (GIRoA), and U.S. coalition partners, is the joint command respon-sible or the management o U.S. programs to develop the ANSF. Because o theimportance the United States attaches to the training mission, SIGARs frst auditreviewed CSTC-As management o a $404 million contract to provide trainingand training support or the ANSF in 17 locations throughout A ghanistan. Theaudit ound CSTC-A did not have the capability to ensure U.S. unds were man-aged properly and spent wisely.
CSTC-A concurred with the fndings o the audit and responded that it wasacting to establish proper contract management and oversight processes. In July,SIGAR learned that a team o contract specialists rom the De ense ContractManagement Agency had arrived in A ghanistan to deal with the issues raised inthe audit. On July 17, 2009, the CSTC-A commander in ormed SIGAR that, as a re-sult o the issues raised in the audit report, the contract specialists were conduct-ing a review o the contract management and oversight or all CSTC-A contracts
unded by the ASFF.
CORRUPTION
The United States and its partners in the international community continue tobe concerned about public corruption in A ghanistan. A ghan o fcials, includ-
ANA Maj. Gen. Mohammad Dawran thanks U.S. Air Force MSgt Richard Woods, director o thesenior leaders maintenance course, or explaining a storyboard depicting an A ghan deploy-ment. Dawran, commander o the A ghan National Army Air Corps, is visiting the installation tolearn more about the Air Education and Training Commands air advisor course. (U.S. Air Forcephoto, SSgt Nathan G. Bevier)
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AFGHANISTAN OVERVIEW
ing President Hamid Karzai, have asked SIGAR to help them reduce corruption.SIGAR cannot provide anticorruption training to the A ghans, but it can providean independent and objective assessment o capabilities and assistance to reducecorruption. SIGAR has two audits under way to evaluate the GIRoAs capacityat the national and provincial levels to establish the internal controls and theaccountability measures needed to deter corruption. These audits are assessingU.S. and international e orts to develop the GIRoAs capacity to deter corrup-tion. They are also examining how A ghan o fcials at the national and locallevels control and account or the ow o unds. SIGAR will publish the frst in aseries o fndings later this year.
INTERNATIONAL COOPERATIONThe U.S. strategy or A ghanistan and Pakistan emphasizes increasing interna-tional dialogue and integrating international assistance. Since announcing thestrategy earlier this year, the United States has participated in several interna-tional con erences that ocused on stabilizing A ghanistan. Each o these meet-ings endorsed the central role that the UN Assistance Mission to A ghanistan(UNAMA) has in coordinating international aid to A ghanistan. U.S. o fcials saythey are working with the international donor communityincreasingly, underthe auspices o UNAMAto develop a common ramework to guide and inte-grate international aid to A ghanistan. 6
In his recent report to the UN Security Council, the UN Secretary-Generalsaid donor coordination has improved, in part as a result o greater internationalconsensus on reconstruction objectives. He noted that the Joint Control
U.S. and international assistance is expanding access to education and health care or A ghanchildren, including girls. (SIGAR photo)
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AFGHANISTAN OVERVIEW
Monitoring Board (JCMB), which was established in 2006 to coordinate interna-tional assistance with the GIRoA, has also made progress. 7 Over the past threemonths, JCMB has approved police re orm measures, adopted a new agriculturaldevelopment strategy, and established priorities or private sector development.
International coordination o projects is essential to maximize the impact o re-construction dollars. SIGAR has begun a series o sector audits to examine the de-gree to which projects have been coordinated across U.S. government agencies,as well as with other international donors. The frst o these audits is evaluatingassistance to the energy sector. SIGAR will issue this report in the next quarter.
The 26 provincial reconstruction teams (PRTs)12 led by the United Statesand 14 by coalition alliesplay an important role in the international e ort tostabilize and rebuild A ghanistan. In June 2009, SIGAR attended the second an-nual PRT con erence, which brought together the civilian and military leadershipo the North Atlantic Treaty Organization (NATO) and non-NATO members o ISAF to improve international coordination o reconstruction projects. SIGARis inspecting the management and operational capabilities o all the PRTs in
A ghanistan. It began this series o inspections with the PRT in Farah Provinceand will issue a report during the next quarter. SIGAR is currently inspecting theParwan-Kapisa PRT, which is located at the Bagram Air Base.
Special Inspector General or A ghanistan Reconstruction Arnold Fields visits a womensprison, where young children are allowed to stay with their incarcerated mothers. One o thegoals o the ANDS is to re orm the prison system and create better acilities or women andchildren. (SIGAR photo)
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AFGHANISTAN OVERVIEW
THE AFGHANISTAN-PAKISTAN STRATEGY Because U.S. decision-makers believe conditions and events in Pakistan have animpact on developments in A ghanistan, they are encouraging greater coopera-tion between the two countries and seeking increased assistance or Pakistan aswell as A ghanistan. 9 In May, the United States brought the military and civilianleaders o A ghanistan and Pakistan together to discuss greater regional coop-eration. As a result o these trilateral consultations, Pakistan and A ghanistan
pledged to reach a trade agreement by the end o the year, open two additionalborder posts, increase cooperation in the agricultural sector, and acceleratecross-border in rastructure projects. These developments will likely a ect recon-struction programs on the A ghan side o the border.
INTER-AGENCY COORDINATION
SIGAR is coordinating its audits, inspections, and investigations with other in-spectors general and audit agencies through several orums. The Southwest Asia
Joint Planning Group meets every three months and prepares quarterly reportson audit and inspection activities in Southwest Asia, including A ghanistan. Anewly ormed sub-group o the Southwest Asia Joint Planning Group meets peri-odically to discuss ongoing and planned work in A ghanistan and Pakistan. This
planning group seeks to prevent duplication o e ort and ensure that all impor-tant oversight issues are being addressed. Finally, SIGAR participates in meetingsheld every three weeks at the U.S. Forces - A ghanistan (USFOR-A) headquartersto coordinate oversight activities in A ghanistan.
SIGAR investigators and attorneys also collaborate closely with their law-en orcement colleagues in other U.S. government agencies. SIGAR is a membero the International Contract Corruption Task Force (ICCTF), the principal orga-nization coordinating ederal criminal and civil cases that involve procurement
raud and corruption related to U.S. government spending in Southwest Asia.
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An A ghan reporter speaks with women about theimportance o having radios and listening to the news.(U.S. Army photo, SPC Phoebe R. Allport)
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SIGAR OVERSIGHT 2
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To ensure that our programsoperate according to the higheststandards o e ectiveness andintegrity, we are committed tosupporting the e orts o the
Congressionally-mandated SpecialInspector General or A ghan
Reconstruction (SIGAR), as wellas the Government AccountabilityO fce (GAO) and State, USAID,
and DoD Inspectors General.
Ambassador Richard C. Holbrooke,
Special Representative or A ghanistan and Pakistan 10
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SIGAR OVERSIGHT
AUDITSSIGAR issued three audit reports this quarter and has seven other auditsunder way. These audits cover a spectrum o reconstruction issues, includingcontract oversight, program management, and contractor per ormance, as
well as reconstruction activities to improve security, oster good governance,and support economic development. Two o the audits were initiated recentlyto examine the U.S. and international e orts to strengthen the A ghan govern-ments capacity at the national and provincial levels to establish internal con-trols and provide the accountability that is critical to preventing corruption.
SIGAR believes that an important part o its oversight mission is to identi yissues in real time and bring them to the attention o implementing agencies,so they can make immediate program adjustments to improve the e ective-ness o the reconstruction program. In this spirit, SIGAR provided the U.S.Embassy in Kabul with a report recommending measures to strengthen
A ghanistans capacity to conduct elections. An audit examining the undingand implementation o programs related to the August 20, 2009, presidential
and provincial council elections will be completed a ter the elections. SIGARwill also issue a report assessing the participation o women in the election
process.The three audit reports issued during this quarter identifed problems with
contract oversight, in ormation management, and capacity building.
COMPLETED AUDIT REPORTS
Contract Oversight Capabilities of the Defense DepartmentsCombined Security Transition Command - Afghanistan(CSTC-A) Need Strengthening, SIGAR Audit 09-1
More than hal o all U.S. reconstruction dollars provided or A ghanistansince 2002 have gone into training, equipping, and deploying the A ghan Na-tional Security Forces (ANSF). The Combined Security Transition Command- A ghanistan (CSTC-A), in conjunction with the Government o the IslamicRepublic o A ghanistan (GIRoA) and U.S. coalition partners, is the joint
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SIGAR OVERSIGHT
command responsible or the management o U.S. programs to develop the ANSF, which includes the A ghan National Army (ANA) and the A ghan Na-tional Police (ANP).
SIGARs review o CSTC-As management o a $404 million contract to provide training and training support or the ANSF in 17 locations through-out A ghanistan ound that although CSTC-A is responsible or the manage-ment o the training programs or the ANSF, it does not have the capability toensure that U.S. unds are managed e ectively and spent wisely. At the timeo the audit, CSTC-A had only one contracting o fcers technical representa-tive (COTR) located in A ghanistan to provide contract oversight. That o fcialhad limited contracting experience and training, and had been unable to makefeld visits to monitor contractor per ormance.
Because a lack o oversight increases the likelihood that training undsmay not be used as intended, SIGAR recommended that CSTC-A strengthenits oversight capabilities. Specifcally, SIGAR suggested CSTC-A:
obtain management sta who have the qualifcations and training to con-duct contract oversight workdevelop a program or contract oversight that includes visits to the feldwhere the contractor is providing services
CSTC-A concurred with the fndings o the audit and responded that it wasacting to establish proper contract management and oversight processes.CSTC-A also said it viewed SIGARs audit as a mechanism to help it obtainthe resources required to monitor the contract e ectively. In July, during a
ollow-up visit to CSTC-A, SIGAR learned that a team o contract specialistsrom the De ense Contract Management Agency had arrived in A ghanistan toconduct a review o the contract management and oversight or all CSTC-Acontracts unded through the ASFF.
UN Action Urged To Strengthen Afghanistan Capacity ToSupport Future Elections, SIGAR Audit 09-2
SIGAR issued a letter report on July 6, 2009, related to the preparation andconduct o presidential and provincial council elections. Public distribution o the letter report is limited until a ter the August 2009 elections.
Management Information Systems Available toReconstruction Decision-Makers in Afghanistan, SIGAR
Audit 09-3
SIGARs review o the management in ormation systems o the key U.S. agen-cies and commands in A ghanistan ound that no single management
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SIGAR OVERSIGHT
in ormation system provides ull and accurate in ormation o all fnished,ongoing, and planned reconstruction activities. Having this in ormation wouldhelp decision-makers to plan, coordinate, monitor, and report on reconstruc-tion activities, and, i necessary, take corrective action. The lack o an inte-grated management in ormation system increases the risk that U.S. resourcesmay be wasted either through duplication o e ort or because projects are incon ict with each other.
Five agencies and commandsthe Department o State (DoS), the U.S. Agency or International Development (USAID), U.S. Forces - A ghanistan(USFOR-A), CSTC-A, and the U.S. Army Corps o Engineers A ghanistanEngineer Districtplay major roles in the implementation o U.S.- unded re-construction programs in A ghanistan. While each o these organizations saidit uses established in ormation systems or fnancial and accounting purpos-es, SIGAR ound the availability and use o in ormation systems or projectmanagement varied signifcantly and did not allow agencies and commandsto easily share in ormation about projects. Instead, most sharing o in orma-tion between the agencies and commands occurred at periodic meetings andthrough ad hoc reports and presentations. Senior representatives rom themain U.S. entities operating in A ghanistan agreed they would all beneft i they had access to a system that provided a common operating picture o thestatus o reconstruction projects.
USAID, at the direction o the National Security Council Deputies Com-mittee in late 2008, completed a study in June 2009 assessing the easibil-ity o a joint in ormation management system or reconstruction activities.
The USAID study provided recommendations that could orm the basis ora broader coordinated e ort to develop a robust system to share in orma-tion on the reconstruction e ort in A ghanistan. However, additional work,coordinated among the key U.S. implementing agencies, is now needed to
jointly develop an integrated management in ormation system or A ghanistanreconstruction activities.
SIGAR has recommended the reconstruction stakeholders appoint anexecutive agent to coordinate the development o an integrated in ormationsystem that takes into account the various systems currently used to collectreconstruction data and also identifes the resources needed to implementand sustain a new system.
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SIGAR OVERSIGHT
ONGOING AUDITS Agencies Management Oversight, Procedures, and Practicesfor Reconstruction Funds and Projects
SIGAR is conducting individual audits o implementing agencies capacityto provide oversight o the reconstruction unds that have been allocated tothem. The frst o these audits examine CSTC-As contract oversight capabil-ity. The second is examining how USAID provides oversight o contracts or
A ghanistan reconstruction. Auditors are reviewing USAIDs current contractfles as well as prior work done by the Government Accountability O fce(GAO), the USAID O fce o the Inspector General (USAID OIG), and theCommission on Wartime Contracting concerning USAID contract oversightand project requirement issues.
Contractor Performance and Agency Oversight of U.S. Government Contracts in Afghanistan with LouisBerger Group
SIGAR auditors are reviewing the contracts that U.S. agencies have with theLouis Berger Group. The audit, which is assessing the agencies oversight o the contractor as well as contractor per ormance, is scheduled or completionduring the third quarter o 2009.
U.S. and International Donor Programs To Assist Afghanistans Energy Sector
SIGAR has begun its program to assess the overall management and e ective-ness o the U.S. and international e ort in various reconstruction sectors.This audit, which is ocusing on programs to rebuild A ghanistans energysector, seeks to identi y U.S. and international goals or the reconstruc-tion and sustainment o A ghanistans energy sector. It will determine what
per ormance metrics are being used to track and measure outcomes ratherthan outputs and examine the degree to which reconstruction programs inthe energy sector support objectives established in the A ghanistan NationalDevelopment Strategy (ANDS). SIGAR auditors are also assessing the coor-dination between U.S. and international agencies, and the degree to which
A ghans have participated in the design and implementation o projects. Thisreport will be completed during the next quarter.
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Controls and Accountability for the Commanders Emergency Response Program (CERP)
SIGAR auditors are examining the management controls and procedures in place to ensure that the Commanders Emergency Response Program (CERP)
unds are properly accounted or as well as used to support program objec-tives and mission strategies.
Review of U.S. Assistance for the Preparation and Conduct of Presidential and Provincial Council Elections in Afghanistan
SIGAR is conducting a multi-part evaluation o the election process in A ghan-istan. In the frst part, auditors are assessing the U.S. and international assis-tance provided or the presidential and provincial council elections scheduledto take place on August 20, 2009. SIGAR is examining the e ectiveness o the
programs to prepare or the elections in several areas, including voter regis-tration, voter education, polling center security, ballot box integrity, and vote-counting procedures. This audit will be released a ter the elections.
As noted above, SIGAR believes an important part o its mission is to makethe overall reconstruction program more e ective. There ore, SIGAR hasalready delivered a report to the U.S. Embassy both to provide in ormation toimplementing agencies and to allow them to make real-time adjustments toincrease program e ectiveness. A ter the elections, SIGAR will also issue a
report assessing the participation o women in the electoral process.Later this year, SIGAR will issue an audit report that identifes lessonslearned that may be applied to uture elections.
Review of Oversight and Anticorruption Capabilities andPerformance of the Afghan Central Government; U.S. andOther Donor Efforts To Strengthen the Capabilities; andFunds That May Be at Risk
Recognizing that corruption has become a very serious issue a ecting thereconstruction e ort, SIGAR is conducting an audit o U.S. and international
assistance to the GIRoA at the national level, to establish internal controlsand provide the accountability needed to combat corruption. This audit alsowill evaluate the ability o selected A ghan ministries to control and account
or the ow o unds. It seeks to identi y the unds at risk in certain ministries,assess the U.S. and international e orts to develop A ghan capacity to fghtcorruption, and provide recommendations to strengthen the internal controlsand accounting mechanisms needed to ensure the e ective and transparentmanagement o government unds. SIGAR plans to publish a series o reportson this issue. The frst will be released in the next quarter.
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Review of Accountability and Anticorruption Capabilitiesand Performance of Afghan Provincial Governments; U.S.and Other Donor Efforts to Strengthen the Capabilities; andFunds That May Be at Risk
Whereas the preceding audit is assessing the anticorruption assistance andcapabilities in the central government, this audit is examining the capacity o
A ghan o fcials at the provincial level to apply internal controls and accountor unds under their control. SIGAR is evaluating both U.S. and international
e orts to improve provincial government internal controls and accountabil-ity, which are critical to preventing corruption. It is also assessing options tostrengthen the capacity at the provincial level to implement internal controlsand other anticorruption measures.
SIGAR plans to produce multiple reports, each one ocusing on a province.The frst report will be issued later this year.
INSPECTIONSSIGAR issued one inspection report and initiated our inspectionstwo o PRTs and two o in rastructure projectsduring this reporting period. Theinspection o the Khowst City Power System identifed several issues, includ-ing a high turnover o personnel involved in reconstruction projects that hasresulted in a loss o institutional knowledge about projects, inadequate qualityassurance and quality control measures, and insu fcient training or A ghanoperators to sustain projects.
COMPLETED INSPECTIONS
Improvements to the Khowst City Power System, SIGARInspections 09-1
At the request o the Khowst provincial and city governments, the KhowstPRT initiated a $1.6 million project, unded by CERP, to improve the KhowstCity Power System. The PRT divided the project into two contracts. The frstcontract, valued at $575,000, was to repair the existing power plant (PowerPlant 1), build a second power plant (Power Plant 2), purchase and installthree new 500-kW generators at Power Plant 1, and relocate an existing 400-kW generator to Power Plant 2. The second contract, valued at slightly morethan $1 million, was to expand the underground electric grid within the cityo Khowst. Collectively, the two projects were to add 1.5 MW to the local grid
The three new 500-kW generators at theKhowst Power Plant as they appearedduring the SIGAR inspection visit on May16, 2009. O these three new generators,only two are operational; the third isawaiting replacement parts. (SIGAR photo)
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and provide increased access to power or the residents and businesses o Khowst.
SIGAR conducted the inspection in May 2009 a ter a preliminary site visitearlier this year raised concerns about sa ety and sustainability issues atPower Plant 1. SIGAR ound that the expansion o the electrical distributionsystem had been success ully completed in compliance with the second con-tract. However, SIGAR identifed several issues relating to the frst contractthat needed to be addressed. These issues concern plant sa ety, quality assur-ance, and sustainability:
The statements o work provided to the contractors did not include inter-nationally accepted construction codes or the contractors to ollow. ThePRT did not include the installation o any sa ety equipment, such as thatneeded to fght fres, in the projects statement o work.The contractor did not ully comply with the terms o the contract, usingsub-standard building materials in some areas.The PRT did not provide the quality assurance needed to ensure that thecontractor met the technical requirements specifed in the statement o work.
A key mechanism needed to synchronize the newly installed generatorsailed shortly a ter the project was turned over to the A ghan authorities.
Unable to repair the synchronizer mechanism, the plant operator bypassedit and wired two o the generators directly to the power distribution panel.
As a result, two o the generators were running constantly and one o the newly installed generators was out o commission at the time o the
inspection.The militarys rotation schedule meant that the PRT experienced a com- plete turnover o its military personnel every nine months. During theserotations, the PRT claimed that some records and documents were lost.Consequently, SIGAR ound the PRT had a limited institutional memoryabout this reconstruction project.
SIGAR made the ollowing recommendations and the PRT commanderconcurred with them. The PRT should:
identi y and correct the sa ety and technical defciencies at the power plantsassign qualifed personnel to provide oversight o the ollow-on CERP proj-
ects to correct the sa ety hazards and technical defciencies o the KhowstPower System
provide training and mentoring o local power plant management and per-sonnel to build capacity so that long-term maintenance and sustainabilityo the Khowst Power System are addressedreview its other CERP projects to determine whether it is providingadequate project oversight and adequate training and mentoring to buildcapacity or long-term project sustainment
A rusted uel tank resting on rocks is uas the uel reservoir or Khowst City PoPlant 2 instead o the two new 6,000-lite
uel tanks that should have been installedin accordance with the project design.(SIGAR photo)
A 400-kV distribution panel as rewirA ghan plant operators at Khowst PowerPlant 1. (SIGAR photo)
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The PRT commander concurred with SIGARs fndings and recommenda-tions and said the PRT had procured additional CERP unding to addressdefciencies in the Khowst City Power System.
CURRENT INSPECTIONS
Operations and Management Inspections of the ProvincialReconstruction Teams
SIGAR has initiated a program o inspections o the management and opera-tional capabilities in A ghanistan. The PRTs principal mission is to strengthenlocal governance and oster economic development; they play a key role inthe international e ort to stabilize A ghanistan. They also help coordinatethe reconstruction e ort in the provinces, not only between U.S. agenciesbut also with the international community and the local A ghan authorities.O the 26 PRTs, 12 are led by the United States and 14 are led by other coun-tries that are also part o the International Security Assistance Force (ISAF).SIGAR has conducted one PRT inspection and will issue a report during thenext quarter. It has begun a second PRT inspection and plans to complete twoothers in 2009.
These inspections seek to determine whether the PRT is:sta ed at levels that allow it to conduct its mission
sta ed with inter-agency representation at appropriate levels o seniority and experienceappropriately equipped, resourced, and trained to accomplish its missioncoordinating reconstruction e orts with inter-agency partners, A ghanauthorities, and other stakeholdersexecuting the U.S. governments quality assurance program or projects orwhich the PRT is responsiblecreating and maintaining appropriate fles and documentation or projects
or which it is responsiblecomplying with established guidelines, procedures, and policies required toensure an e ective handover and trans er o tasks to successive PRT sta
Operations and Management Inspection of the Farah PRT
SIGAR began its series o inspections o the operations and management o the PRTs throughout A ghanistan in Farah, a western province that bordersIran. SIGAR selected the Farah PRT or its frst inspection because o itsremote location and unique command-and-control relationship with ISAF.
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SIGAR sought to determine whether the PRT was adequately resourced andsta ed to execute programs to improve security, oster good governance, andsupport economic development.
The Farah PRT was created in late 2004 and became operational in early2005 under direct U.S. military command. Italy, a coalition partner in ISAF,assumed responsibility or the Regional Command West in 2005 and took overoperational control o the PRT at that time. Administrative control o the PRT,however, remained with the U.S. military. Farah is one o two U.S.-led PRTsthat reports to a non-U.S. command.
The Farah PRT, unlike other PRTs, also has been assigned a number o tasks not related to reconstruction. They include managing an isolated or-ward operating base (FOB) and local airfeld, as well as administering a largearea that houses numerous agencies and organizations that are not under thecontrol o the PRT. Only 15% o the more than 600 residents on the base allunder the authority o the PRT commander. SIGAR will issue this report dur-ing the next quarter.
Operations and Management Inspection of theParwan-Kapisa PRT
SIGAR has commenced an inspection o management aspects o the Parwan-Kapisa PRT, which is located at the Bagram Air Base. The report will becompleted later this year.
INFRASTRUCTURE INSPECTIONS
While in Farah Province, SIGAR conducted two inspections o U.S.- undedin rastructure projects and will issue fnal reports during the next quarter. Thefrst is a $1.75 million CERP project to build a bridge (the Tojg Bridge) acrossthe Farah River at a crossing point about 37 miles southwest o the city o Farah. SIGAR is assessing whether the project, which began in September2007 and is about 30% complete, is being built to contract specifcations.
The second inspection is o a joint project implemented by the Farah PRTand USAID to re urbish broadcast acilities to expand the coverage o RadioTelevision A ghanistan, the state-run media organization. The PRT used CERP
unds to repair the acilities and USAID unds to rebuild the transmission tow-ers. A complete report assessing whether the project ulflled the terms o thecontract, unctions as intended, and is sustainable will be issued next quarter.
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PLANNED INSPECTIONSSIGAR has notifed USAID that it will inspect the $259 million Kabul PowerPlant. This USAID- unded project was designed to build a power plant andswitching station that could deliver 105 MW o power to the people o Kabul.USAID reports that it has obligated $237 million to date. The GIRoA has pro-
vided $20 million or this project. 11 SIGAR will review the documents used to establish the requirements or
U.S. unding o the Kabul Power Plant, all relevant contracts, statements o work, and task orders, as well as the contractors quality control records andthe U.S. governments quality assurance records.
SIGAR is planning two other in rastructure inspections, one o an ANP
training center and the other o a hydroelectric power plant.
THE SIGAR HOTLINE
The SIGAR hotlines in A ghanistan and the United States received 30 callsreporting issues and complaints during this reporting period. SIGAR evalu-ates each call that concerns reconstruction activities in A ghanistan. O these,SIGAR has re erred three complaints to other agencies or investigation.
SIGAR has launched a media campaign to in orm people in A ghanistanabout its hotline/complaints reporting service. SIGAR distributed about 1,500
posters in English, Dari, and Pashtu to A ghan government o fces, interna-tional organizations, PRT commanders, and USFOR-A. Radio Free A ghani-stan, the Armed Forces Network, and Voice o America ran public serviceannouncements about the hotline in English, Dari, and Pashtu. In addition,the Inspector General discussed the hotline in his interviews with A ghanmedia during his recent trip to A ghanistan.
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INVESTIGATIONSDuring this reporting period, SIGAR initiated preliminary inquiries into 23allegations o raud, waste, and abuse related to A ghanistan reconstructionactivities. The areas o inquiry include possible shipping raud, weapons ac-countability, uel procurements, and heavy-equipment leases. SIGAR inves-tigators are also evaluating allegations o contractor misconduct, including
alse claims and overpayments.Remedies or resolving cases involving raud, waste, and abuse include
not only criminal and civil prosecution but also administrative actions ( ed-eral procurement contract remedies and suspensions/debarments). The
Department o Justice (DoJ) has directed prosecutors to consider all reme-dies. SIGAR has met with the DoJ Civil Attorney and the Armys ProcurementFraud Branch to ensure civil remedies and suspension and debarmentactions are considered and pursued to the maximum extent possible inappropriate cases.
THE INTERNATIONAL CONTRACT CORRUPTION TASK FORCE (ICCTF)
SIGAR investigators are working closely with the ICCTF, the principal organi-
zation coordinating ederal cases that involve contract raud and corruptionrelated to U.S. government spending in Southwest Asia. As o June 30, 2009,the ICCTF had 25 open A ghanistan Procurement Fraud cases. Five o thesewere initiated in 2009.
The ICCTF reports to the International Sub-Committee o DoJs NationalProcurement Fraud Task Force. Other members o the ICCTF are:
Federal Bureau o Investigation (FBI)DoD DCISU.S. Army Criminal Investigation Commands (CID) Major ProcurementFraud UnitNaval Criminal Investigative Service (NCIS)
Air Force O fce o Special Investigations (AFOSI)
DoS, O fce o the Inspector General (DoS OIG)USAID OIGSpecial Inspector General or Iraq Reconstruction (SIGIR)
In A ghanistan, the ICCTF has o fces in Kabul, Bagram, and Kandahar.Each member o the ICCTF deploys agents to these combined o fces to work
jointly on investigations in A ghanistan. In addition to doing casework, the
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agents are also conducting raud awareness briefngs and risk assessments.The ICCTF enables the investigative agencies to share their respective exper-tise, leverage their resources, and minimize duplication o e ort, not only in
A ghanistan but throughout the world.During this reporting period, SIGAR worked with colleagues in the ICCTF
on cases involving raud and corruption. These cases are at various stages o investigation and prosecution. For example:
In cooperation with military authorities, SIGAR investigated allegationsthat an active-duty soldier had accepted bribes or directing reconstruc-tion contracts. This case has been re erred to the Army Sta Judge Advo-cate. A courts martial prosecution under the Uni orm Code o Military
Justice may result.SIGAR is reviewing complaints concerning an A ghan government o fcialallegedly involved in in uence-peddling.
A ghanistan reconstruction cases currently being prosecuted include:Two DoD contractors and their company were charged variously withbribery and conspiracy related to U.S. Army Corps o Engineers contracts.The case is being investigated by the ICCTF and prosecuted by DoJs Anti-trust Division. The indictment was fled on May 6, 2009. Trial is scheduled
or September 2009.DoJs Criminal Division Fraud Section is prosecuting a case emanating
rom the Rehabilitation o Economic Facilities Program, in which a secu-rity contractor is charged with submitting in ated expenses to the prime
contractor which, ultimately, were submitted to the U.S. government.USAID is the lead investigative agency. Trial is set or September 2009.
SIGAR BUDGET The Supplemental Appropriation or FY 2009 (P.L. 111-32), signed by the U.S.
president in June, provided $7.2 million to SIGAR over two years to addressthe organizations budget short all. SIGAR had submitted a request or thisamount to the O fce o Management and Budget to be included in the supple-mental appropriation. With the additional unding, SIGARs budget or FY2009 totals $23.2 million. The supplemental unding allows SIGAR to hire anadditional 25 ull-time equivalents (FTEs) as well as locally employed sta (interpreters). This sta is critical to SIGARs mission to conduct indepen-dent audits, inspections, and investigations o the reconstruction program in
A ghanistan. See Table 2.1 or a SIGAR unding summary.
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SIGAR STAFF Since its last quarterly report to Congress, SIGAR has signifcantly enhancedits capacity to conduct oversight, increasing the number o ederal employeeson its sta rom 32 to 44. 12 SIGAR expects to hire an additional three auditors,one inspector, two investigators, and one in ormation technology manager bythe end o August 2009.
SIGAR FUNDING SUMMARY ($ MILLIONS)
Appropriation Public Law Appropriated Made Available Expires Amount
Supplemental Appropriations or Fiscal Year 2008, HR2642
P.L. 110-252 6/30/2008 6/30/2008 9/30/2009 $2.0
Supplemental Appropriations or Fiscal Year 2008, HR2642
P.L. 110-252 6/30/2008 10/1/2008 9/30/2009 $5.0
Consolidated Security, Disaster As-sistance, and Continuing AppropriationsAct, 2009
P.L. 110-329 9/30/2008 9/30/2008 9/30/2010 $9.0
Supplemental Appropriations or Fiscal Year 2009, HR2346
P.L. 111-32 6/24/2009 6/24/2009 9/30/2010 $7.2
TOTAL $23.2
TABLE 2.1
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Kunar Construction Center GraduatesGraduates o the Kunar Construction Center ( unded
jointly by USAID and CERP) in eastern A ghanistanreceived ormal vocational training in carpentry, masonry,electrical work, and painting. (USAID photo)
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As an Afghan-owned blueprintfor the development of
Afghanistan in all spheresof human endeavor, the ANDS will
serve as our nationsroadmapfor the long-desired objective
of Afghanization, as we transition
towards less reliance on aid andan increase in self-sustainingeconomic growth.
Afghan President Hamid Karzai,describing the Afghanistan National
Development Strategy 13
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RECONSTRUCTION UPDATESince 2002, the United States has provided over $38 billion or the reconstructiono A ghanistan. Two strategiesthe A ghanistan National Development Strategy(ANDS) and the new U.S. strategy or A ghanistanprovide the ramework
or the U.S. reconstruction e ort. The ANDS, developed in consultation withthe international community, establishes benchmarks under three reconstruc-tion pillars: security; governance, rule o law, and human rights; and economicand social development. In addition, the ANDS identifes six issuesregionalcooperation, counter-narcotics, anticorruption, gender equality, capacity devel-opment, and environmentthat cut across all three pillars. The Government o the Islamic Republic o A ghanistan (GIRoA) adopted the ANDS in 2008, and theUnited States is committed to helping A ghanistan achieve the ANDS objectives.
This section provides an update on the status o U.S. and international und-ing or the reconstruction o A ghanistan, as well as an update on reconstructione orts made under each o the three pillars. The sub-section on unding exam-ines how unds set aside or reconstruction have been apportioned among U.S.implementing agencies then describes activities under each o the three pillars o
The construction o Jurm School, a USAID- unded school construction project, has created jobsor A ghan men. (USAID photo, Ben Barber)
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the ANDS. The sub-section on security ocuses on U.S. e orts to train the A ghanNational Security Forces (ANSF). The sub-section on governance, rule o law,and human rights sets the stage or the upcoming presidential and provincialcouncil elections and describes anticorruption e orts. The last sub-section,which describes the activities undertaken to promote economic and social devel-opment, includes an update on counter-narcotic e orts.
The in ormation presented in this section incorporates U.S. government agen-cies data and in ormation, o fcial reports, congressional testimony, and other
public sources. SIGAR has not independently verifed the data. All sources areidentifed in the endnotes.
THE AFGHANISTAN NATIONAL DEVELOPMENT STRATEGY (ANDS)
GIRoA adopted the ANDS in 2008, a ter two years o consultations with a broadrange o A ghans as well as with the international community. Building on the2006 A ghanistan Compact, the ANDS describes reconstruction objectives underthree pillarssecurity; governance, rule o law, and human rights; and economicand social developmentand establishes benchmarks or achieving the goals. Italso identifes six cross-cutting issues regional cooperation, counter-narcotics,anticorruption, gender equality, capacity building, and environmental manage-mentthat need to be addressed as part o the overall development strategy.
The ANDS establishes priorities or fve years (20082013) in the three pillars,described below. Figure 3.1 will be used to highlight the pillars and cross-cuttingissues throughout this section.
Security The primary goal is to stabilize, with the help o the International Security Assis-tance Force (ISAF), all regions o the country and increase the capability o the
ANSF to provide or A ghanistans security by 2010. This includes expanding the ANSFthe A ghan National Army (ANA) and A ghan National Police (ANP)and ensuring that they represent and are accountable to the people o A ghani-stan. In addition, the GIRoA seeks to strengthen its law-en orcement capacity atboth the central and provincial levels, increase its coordination and intelligence-sharing with neighbors to reduce narcotic tra fcking, and clear 70% o the areacontaminated by land mines and unexploded ordnance.
Governance, Rule o Law, and Human RightsThe ANDS emphasizes strengthening government institutions at the central andsub-national levels to improve the delivery o public services and protect therights o all citizens. The long list o goals in this pillar includes re orming the
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justice sector and restructuring the civil service to ensure a fscally sustainable public administration. It also puts a high priority on developing the capacity o the A ghanistan Independent Electoral Commission (IEC) to conduct elections,implementing a national plan to expand emale participation in governance,re orming oversight procedures to prevent corruption, and repairing courts and
prisons.
Economic and Social DevelopmentThe ANDS goal is to reduce poverty by expanding the private sector while pro-gressively eliminating the criminal economy. Private sector growth depends onexpanding the countrys in rastructure in the critical areas o electricity, trans-
portation, and water management. At the same time, the ANDS calls or training
and education programs to build capacity in both the public and private sectors.
G O V E R N A N C E
D E V E L O P M E N T
REGIONAL COOPERATION
COUNTER-NARCOTICS
ANTICORRUPTION
GENDER EQUALITY
CAPACITY
ENVIRONMENTAL
AFGHANISTAN NATIONAL DEVELOPMENT STRATEGY (ANDS)
S E C U R I T Y
FIGURE 3.1
Graphic Symbol: The graphic belorepresents the three pillars o thand the six cross-cutting issues them. Throughout this section, tor cross-cutting issue under dischighlighted in the margins.
S E C U R I T Y
REGIONALCOOPERATION
COUNTER-NARCOTICS
ANTICORRUPTION
GENDER EQUALITY
CAPACITY
ENVIRONMENTAL
G O V E R N A N C E
D E V E L O P M E N T
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The ability to implement theprojects and programs includedin the ANDS depends upon theresources that will be available.
A ghanistan National Development Strategy
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STATUS OF FUNDS
STATUS OF FUNDSOn June 24, 2009, the President o the United States signed the FY 2009 Supple-mental Appropriations Act, providing an additional $5.04 billion or the recon-struction o A ghanistan, including $3.6 billion or the A ghan security orces. 14 Including this recent appropriation, the United States has provided approximate-ly $38 billion in relie and reconstruction assistance to A ghanistan.
U.S. RECONSTRUCTION FUNDING FOR AFGHANISTANSince the United States and its partners overthrew the Taliban in 2001, the U.S.Congress has passed several major appropriation bills to fnance e orts to
rebuild A ghanistan. The O fce o Management and Budget (OMB) has appor-tioned the money to several agencies that are responsible or implementing U.S.reconstruction e orts in A ghanistan. Figure 3.2 provides an overview o themajor U.S. unds contributing to A ghanistan reconstruction e orts.
Department of Defense (DoD)$16.68
Distributed toMultiple Agenciesa
Awaitin Apportionm
Security Governance
AFGHANISTAN NATIONAL DEVELOPMENT STRATEGY (ANDS)
International Training OrganizationsAfghan National Army (ANA)Afghan National Police (ANP)
ElectionsHuman Rights
Judicial Reform and ProsecutionRule of Law
Anticorruption
Essential ServicesAgriculture
Industry Growth Banking Provincial Reconstruction Teams (PRTs)
Development
ESF
$7.63
ASFF
$15.06
DA
$0.89
INCLE
$1.99
CERP
$1.62
Other
$5.84
Supp.
$5.04
Department of State (DoS)$1.99
USAID$8.52
AGENCIES
FUNDING SOURCES (TOTAL: $38.07)
U.S. FUNDS SUPPORTING AFGHANISTAN RECONSTRUCTION EFFORTS($ BILLIONS)
Note: Numbers affected by rounding. a DoJ, DoD, DoS, U.S. Treasury, USDA, USAID, and other agencies. b Supplemental passed as of 6/24/2009.
Sources: DoD, responses to SIGAR data call, 7/10/2009 and 7/13/2009. USAID, response to SIGAR data call, 7/9/2009. DoS, response to SIGAR data call, 7/2/2009. DoJ/DEA, response to SIGARdata call, 7/8/2009. DoS, responses to SIGAR data call, 7/10/2009 and 7/13/2009. USDA, response to SIGAR data call, 4/7/2009. OMB, responses to SIGAR data call, 9/30/2008 and 7/16/2009.
FIGURE 3.2
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STATUS OF FUNDS
Afghanistan Security Forces Fund (ASFF): $15.06 billion 15 Administered by the Department o De ense (DoD), the ASFF provides support orthe training and equipping o the A ghan National Security Forces (ANSF). 16
Commanders Emergency Response Program (CERP): $1.62 billion Administered by DoD, CERP unds enable local U.S. commanders in A ghanistan(and Iraq) to support programs and projects that provide assistance at a locallevel. 18
Economic Support Fund (ESF): $7.63 billion 19 Administered by the U.S. Agency or International Development (USAID), the ESF
provides the largest amount o U.S. assistance or democracy and capacity-building programs in A ghanistan. 20
Development Assistance (DA): $0.89 billion 21Managed by USAID, DA programs support economic progress and social stabilityin developing countries. 22
International Narcotics Control and Law Enforcement Fund (INCLE):$1.99 billion 23
Managed by the Department o State (DoS) Bureau o International Narcotics andLaw En orcement (INL), INCLE and other INL-managed unds ocus primarily onsupporting law en orcement and counter-narcotics programs. 24
Other Funding: $5.84 billion 25 Additional reconstruction unding is managed by DoD, DoS (including INL),USAID, and the Department o Justice (DoJ) Drug En orcement Agency (DEA).
Graphic Symbol: This report deals withmany unds and projects ranging rommillions to billions o dollars. To provide an
accurate graphical representation o thesenumbers, some bar graphs appear witha break (a wavy line) to indicate a jumpbetween zero and a higher number.
Graphic Symbol: Because this report details unding in both millions and
billions o dollars, it uses a visual cueto distinguish the two units. Dollarsreported in millions are representedin brown, and dollars reported in billionsare depicted in blue.
$0
$4,050
$4,100
Pie chart in Millions Pie chart in B
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STATUS OF FUNDS
AFGHANISTAN SECURITY FORCES FUND (ASFF)The DoD Combined Security Transition Command-A ghanistan (CSTC-A) uses
A ghanistan Security Forces Fund monies to provide the A ghan National Secu-rity Forces (ANSF) with equipment, training, sustainment, counter-insurgency,and in rastructure development. 27
Status o Funds As o June 30, 2009, nearly all o the $15.06 billion in unds made available orthe ASFF have been obligated ($14.90 billion). Approximately $14.69 billion(more than 97% o unds available or the ASFF) has been disbursed. 28 Figure 3.3depicts unds made available to the ASFF by fscal year.
Since February 28, 2009, DoD has disbursed more than $1.93 billion in ASFFmonies, and obligated an additional $2.07 billion. 29 Figure 3.4 compares thestatus o unds or the second quarter (as o February 28, 2009) to the status o
unds or the third quarter (as o June 30, 2009).
ASFF Budget ActivitiesThe ASFF is divided into three budget activities: de ense orces, interior orces,and related activities. 30 As shown in Figure 3.5, a majority o the ASFF undshave been disbursed or de ense orces, specifcally or sustainment, in rastruc-ture, training and operations, and equipment and transportation activities or the
A ghan National Army (ANA). Similarly, the ASFF monies disbursed or interiororces support the same activity groups or the A ghan National Police (ANP). 31
DoD
ASFF
Notes: Numbers a ected by rounding and are aso 6/30/2009. ASFF unding terms (available, obligated,disbursed) reported as provided by DoDexcept as specifed.
Source: DoD, response to SIGAR data call, 7/10/2009.
Interior Forces$5.28
De ense Forces$9.35
Total: $14.69
Related Activities$0.07
ASFF DISBURSEMENTS BY BUDGE ACTIVITY, FY 20052009($ BILLIONS)
Notes: Numbers a ected by rounding. ASFF undingterms (available, obligated, disbursed) reported asprovided by DoD except as specifed.
Source: DoD, response to SIGAR data call, 7/10/2009.
$0
$2.0
$4.0
$6.0
$8.0
2005 2006 2007 2008 2009
ASFF AVAILABLE FUNDS BY FISCAL YEAR($ BILLIONS)
Notes: Data may include inter-agency trans ers. Numbersa ected by rounding. ASFF unding terms (available, obligated,disbursed) reported as provided by DoD except as specifed.
Sources: DoD, responses to SIGAR data call, 2/28/2009 and7/10/2009.
$0
$12.0
$13.0
$15.0
Disbursed$14.69
Obligated$14.90
Available$15.06
As of Feb 28, 2009 As of June 30, 2009
Obligated$12.83
Disbursed$12.76
Available$15.06
$14.0
ASFF FUNDS, PERIODTOPERIODCOMPARISON($ BILLIONS)
ASFF FUND TERMINOLOGY
DoD reported ASFF unds as avaobligated, or disbursed.32
Available: Total monies available ments
Obligations: Commitments to pay Disbursements: Monies that have bexpended
FIGURE 3.5
FIGURE 3.3 FIGURE 3.4
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STATUS OF FUNDS
COMMANDERS EMERGENCY RESPONSE PROGRAM CERP unds enable U.S. commanders in A ghanistan to respond to urgent hu-manitarian relie and reconstruction requirements in their areas o responsibilityby supporting programs that will immediately assist the local population. CERPis intended to be used or small-scale projects under $500,000 per project. Proj-ects over $2 million are permitted, but require approval rom commanders, U.S.Central Command (CENTCOM), or their designees. 34
Status o FundsSince FY 2004, CENTCOM 35 has unded nearly $1.62 billion or CERP in A ghani-stan, including almost $0.54 billion in FY 2009. As o June 30, 2009, approximately
$1.45 billion in CERP unding has been obligated, and nearly $0.81 billion (50% o unded amounts) has been disbursed. 36 Figure 3.6 depicts CERP unding by fscal
year.This quarter (between April 1, 2009, and June 30, 2009), DoD disbursed nearly
$0.13 billion in CERP unds and obligated almost $0.21 billion. 37 Figure 3.7 com pares CERP unded, obligated, and disbursed unds or the second quarter (as o March 31, 2009) and the third quarter (as o June 30, 2009).
CERP FUND TERMINOLOGY
DoD reported CERP unds as unded,obligated, or disbursed.33
Funding: Total monies available or commitments
Obligations: Commitments to pay moniesDisbursements: Monies that have beenexpended
DoD
CERP
FIGURE 3.7
Notes: Data may include inter-agency trans ers. Numbersa ected by rounding. CERP unding terms ( unded, obligated,disbursed) reported as provided by DoD except as specifed.
Source: DoD, response to SIGAR data call, 7/13/2009.
2004 2005 2006 2007 2008 2009$0
$100
$200
$300
$400
$500
$600
CERP FUNDING BY FISCAL YEAR($ MILLIONS)
Notes: Numbers a ected by rounding. CERP unding terms( unded, obligated, disbursed) reported as provided by DoDexcept as specifed.
Sources: DoD, responses to SIGAR data call, 7/13/2009and 7/14/2009.
$0
$0.8
$1.2
$0.7
$0.9
$1.1
$1.3
$1.5$1.6
$1.0
$1.4
Disburse$0.81
Obligate$1.45
Funded$1.62
As o Mar 31, 2009 As o June 30
Obligated$1.25
$1.5
Disbursed$0.68
Funded$1.44
CERP FUNDS, PERIOD-TO-PERIODCOMPARISON($ BILLIONS)
FIGURE 3.6
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STATUS OF FUNDS
ECONOMIC SUPPORT FUND (ESF)ESF programs advance U.S. interests by helping countries meet short- and long-term political, economic, and security needs. Programs range rom supportingcounter-terrorism to bolstering a nations private sector, to assisting in the devel-opment o e ective, accessible, independent legal systems or a more transpar-ent and accountable government. 38
Status o FundsSince 2002, the Congress has appropriated approximately $7.57 billion to ESF
programs or A ghanistan. O this amount, approximately $6.09 billion has beenobligated and $4.17 billion disbursed (nearly 55% o the appropriated amount). 39
Figure 3.8 shows ESF appropriations by fscal year.Since February 28, 2009, USAID has disbursed approximately $454 million and
obligated more than $88 million. 40 Figure 3.9 depicts appropriations, obligations,and disbursements or ESF.
USAID
ESF
ESF FUND TERMINOLOGY
USAID reported ESF unds as apobligated, or disbursed.41
Appropriations: Total monies availacommitments
Obligations: Commitments to pay Disbursements: Monies that have bexpended
Notes: Data may include inter-agency trans ers. Numbersa ected by rounding. ESF unding terms (appropriated,obligated, disbursed) reported as provided by USAID exceptas specifed.
Source: USAID, response to SIGAR data call, 7/9/2009.
2002 03 04 05 06 07 08 09$0
$0.5
$1.0
$1.5
$2.0
$2.5
ESF APPROPRIATIONS BY FISCAL YEAR($ BILLIONS)
Notes: Data may include inter-agency trans ers. Numbersa ected by rounding. EFF unding terms (appropriated,obligated, disbursed) reported as provided by USAID exceptas specifed.
Sources: USAID, responses to SIGAR data call, 2/28/2009and 7/10/2009.
$0
$4.0
$6.0
$5.0
$7.0
Disbursed$4.17
Obligated$6.09
Appropriated$7.57
As o Feb 28, 2009 As o June 30, 2009
Obligated$6.00
Disbursed$3.72
Appropriated$7.57
ESF FUNDS, PERIOD-TO-PERIODCOMPARISON($ BILLIONS)
FIGURE 3.9FIGURE 3.8
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STATUS OF FUNDS
DEVELOPMENT ASSISTANCE (DA)Primarily managed by USAID, DA programs are designed to advance sustainable,broad-based economic progress and social stability in developing countries, in-cluding A ghanistan. 43 DA unds fnance long-term projects to provide humanitar-ian assistance, address environmental issues, improve governance, and promotesocioeconomic development. 44
Status o Funds As o June 30, 2009, approximately $890 million in DA unds has been provided
or A ghanistan. 45 USAID has obligated nearly $883 million o these unds. 46 O this amount, almost $674 million (nearly 76% o DA unds) has been dis-
bursed. 47 Figure 3.10 shows DA appropriations by fscal year.Since February 28, 2009, USAID has disbursed more than $44 million in DA
unds or A ghanistan and obligated almost $8.6 million. 48 USAID has reportedthat 2008 disbursements were a ected by delayed receipt o unds; the major-ity o unds were not released to USAID until late August and mid-September.Figure 3.11 depicts appropriated, obligated, and disbursed DA unds.
USAID
DA
DA FUND TERMINOLOGY
USAID reported DA unds as appropriated,obligated, or disbursed.42
Appropriations: Total monies available or commitments
Obligations: Commitments to pay moniesDisbursements: Monies that have beenexpended
Notes: Data may include inter-agency trans ers. Numbersa ected by rounding. DA unding terms (appropriated,obligated, disbursed) reported as provided by USAID exceptas specifed.
Source: USAID, response to SIGAR data call, 7/9/2009.
2002 03 04 05 06$0
$50
$100
$150
$200
07 08 09
DA APPROPRIATIONS BY FISCAL YEAR($ MILLIONS)
Notes: Numbers a ected by rounding. ESF unding terms(appropriated, obligated, disbursed) reported as providedby USAID except as specifed.
Source: USAID, response to SIGAR data call, 7/9/2009.
$0
$650
$700
$800
$750
$850
Disbu$673
Oblig$882
Disbursed$629.32
Appropriated$890.17
Approp$890.1
Obligated$873.99
DA FUNDS, PERIODTOPERIODCOMPARISON($ MILLIONS)
As o Feb 28, 2009 As o June 3
FIGURE 3.11FIGURE 3.10
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STATUS OF FUNDS
BUREAU OF INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT AFFAIRS (INL)
INL is a branch o DoS responsible or overseeing projects and programs de-signed to combat narcotics tra fcking and drug production. INL manages INCLE,which supports rule o law and interdiction; poppy eradication and demand re-duction; and public in ormation. INL also receives unding rom other agencies,
primarily DoD, to support counter-narcotics programs in A ghanistan. 50
Status o Funds As o June 30, 2009, approximately $3.11 billion was allotted or INL programsin A ghanistan. O this amount, INL obligated approximately $2.88 billion and
liquidated $2.10 billion (more than 67% o unds allotted). 51 Figure 3.12 shows INLallotments by fscal year.
Since March 10, 2009, INL was allotted an additional $270 million. During thesame period, INL obligated more than $368 million and liquidated more than $295million. 52 Figure 3.13 shows allotted, obligated, and liquidated INL unds (includ-ing INCLE) or the second quarter (as o March 10, 2009) and the third quarter (aso June 30, 2009).
DoS
INCLE
INL FUND TERMINOLOGY
INL reported INCLE and other INas allotted, obligated, or liquidate53
Allotments: Total monies availableor commitments
Obligations: Commitments to pay Liquidations: Monies that have beeexpended
Notes: Data may include inter-agency trans ers. Numbersa ected by rounding. INL unding terms (allotted,obligated, liquidated) reported as provided by DoS andINL except as specifed.
Sources: DoS, responses to SIGAR data call, 7/2/2009and 7/15/2009.
2002 03 04 07 09080605$0
$100
$200
$300
$400
$500
$600
$700
$800
INL ALLOTMENTS BY FISCAL YEAR($ MILLIONS)
Notes: Numbers a ected by rounding. INL unding terms(allotted, obligated, liquidated) reported as provided byDoS and INL except as specifed.
Sources: DoS, responses to SIGAR data call, 7/2/2009and 7/15/2009.
$0
$1.75
$2.00
$2.50
$2.25
$3.00
$2.75
Liquidated$2.10
Obligated$2.88
Liquidated$1.80
Allotted$3.11
Obligated$2.51
Allotted$2.84
INL FUNDS, PERIODTOPERIODCOMPARISON($ BILLIONS)
As o Mar 10, 2009 As o June 30, 2009
FIGURE 3.13FIGURE 3.12
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STATUS OF FUNDS
INL ProgramsINL unds are divided into several program groups: police, counter-narcotics,rule o law/justice, and other programs. Police programs have the largestamount o liquidations ($1,178 million or 56% o liquidations), ollowed bycounter-narcotics programs ($769 million or nearly 37% o liquidations). 54 Figure 3.14 shows liquidations by program or INL (including INCLE).
INCLEThe majority o INCLE unds are used to support police, counter-narcotics, andrule o law and justice programs. As o June 30, 2009, approximately $1.99 billionhas been allotted to INCLE, almost $1.78 billion has been obligated and nearly$1.48 billion has been liquidated. 55
Figure 3.15 depicts INCLE allotments, obligations, and liquidations or the sec-ond quarter (as o March 10, 2009) and or the third quarter (as o June 30, 2009).
Notes: Data may include inter-agency trans ers.
Numbers a ected by rounding. INL unding terms(allotted, obligated, liquidated) reported as provided byDoS and INL except as specifed.
Source: DoS, response to SIGAR data call, 7/14/2009.
Other $32.23
Rule o Law/Justice$119.83
Police$1,178.44
Counter-narcotics$769.03
Total: $2,099.53
TOTAL INL LIQUIDATIONS BY PROGRAM,FY 20022009 ($ MILLIONS)
Notes: Data may include inter-agency trans ers.Numbers a ected by rounding. INL unding terms(allotted, obligated, liquidated) reported as provided byDoS and INL except as specifed.
Sources: DoS, responses to SIGAR data call,3/19/2009 and 7/10/2009.
Oblig$1.7
Liqui$1.4
$0
$0.5
$1.0
$1.5
$2.0 Allott$1.9
Obligated$1.66
Liquidated$1.27
Allotted$1.99
INCLE FUNDS, PERIODTOPERIODCOMPARISON($ BILLIONS)
As o Mar 10, 2009 As o June 30,
FIGURE 3.14 FIGURE 3.15
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STATUS OF FUNDS
GOVERNMENT OF AFGHANISTAN FUNDSThe Government o the Islamic Republic o A ghanistan (GIRoA) also provides
unds or reconstruction e orts, in addition to its operating expenses. The GIRoAMinistry o Finance (MOF) is responsible or the management and execution o the budget, which includes A ghan unds or reconstruction e orts. 56 MOF alsois accountable or international unds when they are routed through governmentministries. USAID reported that the GIRoA aces challenges in its fnancial man-agement, particularly anticorruption per ormance, procurement systems, andbudget execution rates. 57
Domestic Budget and Budget ExecutionThe GIRoA budget or 20082009 is an estimated $7.3 billion. The budget isbroken into two categories: the $2.4 billion core budget (including operating anddevelopment budgets) and the $4.9 billion external budget. 58 Figure 3.16 providesa breakdown o GIRoA budget amounts.
Core Budget - OperatingThe GIRoA has provided $1.4 billion or its oper-ating budget, composed primarily o recurrent costs, such as governmentsalaries. Budget execution or this section o the GIRoA budget has reached100%.59
Core Budget - DevelopmentThe GIRoA also budgeted $1 billion or devel-opment in the areas o governance, in rastructure, agriculture, economicre orm, and private sector development. The GIRoA currently executesapproximately 50% o its development budget each year. According to theU.S. Treasury (Treasury), the GIRoA has trouble executing its developmentbudget because o low capacity in the ministries and continuing securitychallenges. 60
External BudgetFor FY 2009, A ghanistans external budget was approxi-mately $4.9 billion. The GIRoAs external budget is composed primarily o security expenses, though some development unding is included. A ghani-stans entire external budget is dependent on international assistance. 61
Domestic RevenueFor 20082009, Treasury reported A ghanistans revenue as approximately $978millionnearly 41% o its $2.4 billion core budget. 62 Figure 3.17 depicts thesources o domestic revenue or the GIRoA. Treasury reported that the GIRoArelies on external revenue to und almost 60% o its core budget, plus its entireexternal budget. 63
Note: Numbers a ected by rounding.
Source: U.S. Treasury, response to SIGAR data call,7/9/2009.
Core BudgeOperating $1.4
External Budget$4.9
Core BudgetDevelopment$1.0
Total: $7.3
GIRoA BUDGET, 20082009 ($ BILLION
Note: Numbers a ected by rounding.
ource: U.S. Treasury, response to SIGAR data call,7/9/2009.
Tax Revenue$490.99
CustomsRevenue$264.67
Non-tax Revenue$222.48
GIRoA DOMESTIC REVENUE, 2008($ MILLIONS)
Total: $978.14
FIGURE 3.16
FIGURE 3.17
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STATUS OF FUNDS
Blocked FundsDuring Taliban rule (prior to December 31, 2001), $264 million was blockedor rozen in U.S. bank accounts pursuant to sanctions against the Taliban; thisrepresents the valuation o 703,000 ounces o gold held by the Central Bank o
A ghanistan with the U.S. Federal Reserve, according to Treasury. Following theU.S.-led military campaign, the A ghan Interim Authority established control over
A ghanistan. The United States returned blocked Taliban assets to the A ghanInterim Authority between February and April 2002. Treasury reported that undswere not vested by the U.S. government. 64
INTERNATIONAL DONORS
At the Paris Con erence in June 2008, A ghanistan presented the ANDS andrequested $50.1 billion over fve years to support the ANDS initiatives. The $50.1billion included $14 billion to improve in rastructure, $14 billion to build the
ANSF, $4.5 billion or agriculture and rural development, and additional undingor other programs. 65
The international community pledged approximately $21 billion, less than hal o the requested amount. The donors cited a relative lack o transparency in theGIRoA as the main reason or lower donations. 66
According to Treasury, the $21 billion international pledge represents asignifcant sum considering the GIRoAs capacity to absorb unding and execute
projects. Treasury recommends an increased ocus on e ective and e fcient ex- penditure o the money currently pledged to A ghanistan be ore urther undingis solicited. 67
A ghanistan Reconstruction Trust FundIn addition to Paris Con erence pledges, the international community contributesmonies to international institutions and trust unds that manage reconstruction
programs in A ghanistan. 68 For example, the World Bank manages the A ghanistan Reconstruction Trust
Fund (ARTF). Between March 22, 2008, and March 21, 2009, 19 internationalcountries pledged $627 million to A ghanistan reconstruction e orts through the
und; a similar amount was pledged between March 22, 2007, and March 21, 2008.Since its inception in 2002, international donors have contributed approximately$3 billion to the ARTF. 69 Table 3.1 depicts unding pledges to the ARTF betweenMarch 22, 2008, and March 21, 2009.
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STATUS OF FUNDS
CONTRIBUTIONS TO THE ARTF (MARCH 22, 2008MARCH 21, 2009) ($ MILLIONS)Main Contributors Total Pledges Paid Funds as of May 2009
United States $151.50 $1.50United Kingdom $100.24 $0.00Netherlands $50.15 $0.00Canada $45.69 $16.34Norway $43.30 $11.32Germany $34.47 $0.00Spain $34.47 $0.00Sweden $17.11 $0.00European Commission/European Union $16.81 $0.00
Australia $14.99 $14.99Others $17.45 $0.00
Total $526.18 $44.15Source: World Bank, ARTF: Administrators Report on Financial Status, 5/21/2009.
TABLE 3.1
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STATUS OF FUNDS
Security in all parts
o the country is essential ore ective governance, private
sector development, economicgrowth, poverty reduction,
and the sa eguarding o
individual liberty. A ghanistan National
Development Strategy
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SECURITY
SECURITY FUNDING SUMMARY
The U.S. Department o De ense (DoD) reported that o the $15.06 billion avail-able or the A ghanistan Security Forces Fund (ASFF) between FY 2005 and
June 30, 2009, $11.08 billion has been made available or training and opera-tions, in rastructure, and equipment and transportation or the A ghan NationalSecurity Forces (ANSF), which comprises the A ghan National Army (ANA)and the A ghan National Police (ANP). 70 This sum represents roughly 33.6% o
the $33.03 billion in U.S. reconstruction unds made available or A ghanistan. 71During the same period, $11.01 billion has been obligated and $10.88 billion hasbeen disbursed or the ANSF. More than 49% was disbursed or equipment andtransportation, while the remaining available unds were split, with 30.2% goingto in rastructure and 20.6% going to training and operations. 72 See Figure 3.18 ordetails on the status o ASFF unds or ANSF training and operations, in rastruc-ture, and equipment and transportation.
DoD-Funded ContractsDoD reported that a total o $1.91 billion has been expended during the period rom
January 1 through June 30, 2009, against $4.28 billion obligated under active U.S.-unded contracts in A ghanistan. 73 These contracts unded projects including con-
struction, oreign military sales, operation and maintenance, the ANA, and the ANP.See Figure 3.19 or additional details on contract obligations and expenditures.
AFGHANISTAN NATIONALDEVELOPMENT STRATEGY (AND
S E C U R I T Y
REGIONALCOOPERATION
COUNTER-NARCOTICS
ANTICORRUPTION
GENDER EQUALITY
CAPACITY
ENVIRONMENTAL
G