USAID OIG Afghanistan and Pakistan Oversight Report, April-June ...

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In addition to the above, OIG plans to conduct a financial audit of USAID/Pakistan’s financialstatements as part of its overall USAID financial statement audit for FY 2012.InvestigationsAs of June 30, 2012, USAID OIG had 25 ongoing investigations pertaining to Pakistan. During thereporting period, OIG investigators opened one case in Pakistan and closed two others. SinceFY 2003, OIG has initiated 85 investigationsrelated to Pakistan. These investigations have Investigative Outcomesbeen associated with a range of different types ofallegations. In most cases, underlying allegationshave pertained to program fraud (32 percent) orbribery and kickbacks (32 percent).During the April 1 through June 30, 2012,reporting period, an OIG investigation resulted inthe termination of a USAID contract and theproposed debarment of a USAID implementingpartner:Since FY 2003, OIG investigations in Pakistanhave resulted in:6 referrals for civil or criminal prosecution1 civil judgment37 administrative actions (e.g., contract andemployee terminations)$102 million in savings and recoveriesUSAID Ends $20 Million Pakistan Children’s Television Project. In late 2011, OIG initiatedan investigation into the Pakistan Children’s Television Project implemented by the Rafi PeerTheater Workshop, after receiving numerous complaints regarding the project through theAnti-Fraud Hotline. To date, the OIG investigation has revealed significant violations of USAIDprocurement policies and standards. In May 2012, OIG referred its initial findings to the USAIDmission in Pakistan. Later that month, USAID agreed with the Rafi Peer Theater Workshop toend their $20 million cooperative agreement. OIG’s investigation is ongoing.USAID Proposes Sindh Rural Support Organization for Debarment. In February 2012, OIGreferred the Sindh Rural Support Organization to USAID for debarment based on a year-longinvestigation of alleged mismanagement, theft, and corruption associated with its participationin several USAID-funded projects. To date, the investigation has resulted in the termination of23 of the organization’s personnel. Two individuals were terminated in April 2012 after theOIG investigation revealed that they had harassed a group of villagers who had filed complaintswith the Anti-Fraud Hotline and ultimately had the villagers sign falsified documentationindicating that they had received payment under a USAID project when they had not. Theinvestigation revealed that the organization’s CEO sent the employees to the village and thatthe falsified documents were submitted as an official response to the ongoing OIGinvestigation. USAID proposed the Sindh Rural Support Organization for debarment in earlyMay 2012. Based on the findings of a related forensic audit conducted by the World FoodProgramme (WFP) in conjunction with USAID OIG, WFP permanently suspended theorganization from participation in future projects in late March 2012.USAID OIG Afghanistan and Pakistan Oversight Report 25
OIG Investigation Results in Employee Termination and Referral for Debarment. An OIGinvestigation related to the $50 million Small Grants and Ambassador’s Fund Programimplemented by the National Rural Support Programme revealed that an NRSP employeeconspired with a program grantee to falsify project-related financial documentation. Theinvestigation revealed that the grantee, the Peshawar-based Khushal Welfare Organization(KWO) fabricated documentation indicating that workers had been paid as part of an $86,000agricultural rehabilitation grant when, in fact, they had not. The falsified documentation wassubmitted to substantiate claims that KWO met its cost-sharing requirements under the grant.During the OIG investigation, an NRSP employee admitted to knowingly certifying the falsifieddocumentation. NRSP terminated the employee involved in the misconduct in March 2012.USAID OIG has referred the NRSP employee and KWO to USAID for possible suspension ordebarment.Outreach and CoordinationUSAID OIG collaborates with the OIGs for the Departments of State and Defense to prepare aquarterly report on the progress and oversight of the U.S. Government’s civilian assistanceprogram in Pakistan. Now in its tenth edition, this report provides information on developmentsrelated to the full scope of U.S. civilian assistance programs and activities in Pakistan. The reportinforms stakeholders about progress achieved to date, problems encountered during programimplementation, and actions taken to address them.With the aim of increasing reporting on fraud, waste,and abuse in assistance programs, OIG andUSAID/Pakistan collaborated to establish an antifraudhotline in Pakistan. The Anti-Fraud Hotline becamefully operational in February 2011. This 5-year projectis funded by a cooperative agreement betweenUSAID/Pakistan and Transparency International-Pakistan in partnership with OIG.Accessing the HotlineThe Anti-Fraud Hotline operates 24 hoursa day and accepts allegations in English,Urdu, Pashto, Baloch, and Punjabi.Complaints may be made to the hotline viaa toll-free number (0800-84700), online(www.anti-fraudhotline.com), by mail orfax, or in person.OIG is solely responsible for handling complaints received through the hotline. During thereporting period, USAID OIG also continued to work closely with the hotline to vet and investigateincoming complaints. This quarter, the hotline received 591 complaints.As in the previous three quarters, most hotline complaints originated from Sindh Province insoutheastern Pakistan, the seat of Pakistan’s largest city and site of flooding last fall. During thisquarter, total complaints by province were as follows: Sindh 454 (77 percent), Punjab 55(9 percent), Balochistan 32 (5 percent), and Khyber Pakhtunkhwa 18 (3 percent). Other provincesand administrative areas in Pakistan combined to account for 5 percent of complaints.26 USAID OIG Afghanistan and Pakistan Oversight Report
Page 1 and 2: April - June 2012
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Page 7 and 8: Audit ProgramOIG auditors, certifie
Page 9 and 10: Most OIG investigations are conduct
Page 11 and 12: site visits. In the past, building
Page 13 and 14: In recent years, OIG has covered a
Page 15 and 16: applications. In fact, the former s
Page 17 and 18: Financial Audit of Costs Incurred b
Page 19 and 20: investigation. While the employee h
Page 21 and 22: This field was cultivated under USA
Page 23 and 24: eceived payments. OIG’s review of
Page 25 and 26: program is improving the capacity o
Page 27 and 28: Under Cooperative Agreement No. 391
Page 29: Financial Audit of USAID Funds Mana
Page 33 and 34: A billboard advertises the Anti-Fra
Page 35 and 36: Other ExclusionsWalker, Scott Antho
Page 37 and 38: ReportDateReport Title*Recommendati
Page 39 and 40: ReportDateReport Title*Recommendati
Page 41 and 42: Date Report Recommendation TargetAc
Page 43 and 44: Date Report Recommendation TargetAc
Page 45 and 46: DateReport Title and NumberAmountAu
Page 61 and 62: 10/10/11 F-306-12-002-N Financial A
Page 63 and 64: 02/25/10 5-306-10-002-NFinancial Au
Page 65 and 66: 08/10/06 5-306-06-004-D Financial A
Page 67 and 68: 03/26/04 5-306-04-003-N Financial A
Page 69 and 70: 06/23/11 G-391-11-003-Q Quality Con
Page 71 and 72: 04/30/09 5-391-09-008-R Financial A
Page 73 and 74: 09/26/06 5-391-06-003-Q Quality Con
Page 75 and 76: The project had many successes, inc
Page 77 and 78: complicated process, and OIG could
Page 79 and 80: The objective of the audit was to d
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According to information provided b
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OIG’s audit found that the univer
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Audit of USAID/Afghanistan's Altern
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and DOD PSCs in Afghanistan because
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Afghanistan has one of the highest
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contractor estimated that cost over
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Audit of USAID/Pakistan’s Energy
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Audit of USAID/Pakistan’s Road Re
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establishing a distribution policy,
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planned results was hindered by a s
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Although USAID carried out numerous
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AbbreviationsAACCAEDATVIAUAfCERPDAB
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USAID Office of Inspector General13
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