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Rep. John F. Tierney

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Eliminating Waste, Fraud and Abuse in Defense Contracts

Posted: 07/26/11 07:23 PM ET

Yesterday, The Washington Post reported that U.S. taxpayer money in Afghanistan is landing in the hands of the Taliban. According to The Washington Post, an unreleased military-led investigation "provides seemingly definitive evidence that corruption [in Afghanistan] puts U.S. transportation money into enemy hands."

I first called on the Department of Defense to deal with these critical national security issues last year when, as Chairman of the Oversight Subcommittee on National Security, I released a report entitled "Warlord, Inc. Extortion and Corruption Along the U.S. Supply Chain in Afghanistan." The report investigated DoD's $2.16 billion Afghan Host Nation Trucking (HNT) contract, which is funded by taxpayer dollars and delivers more than 70 percent of the food, water, ammunition, weapons, and fuel to more than 200 U.S. military forward operating bases and combat outposts throughout Afghanistan.

At that time, our Committee's report found that DoD outsourced almost all the security for this contract, effectively allowing Afghan warlords and insurgents to extort protection payments from the contractors who transport goods and materials to U.S. troops throughout Afghanistan. The eight civilian trucking companies that the U.S. Army hired for the contract serve largely as brokers for the subcontractors that ultimately provide trucks and security to ensure safe passage of supplies throughout the country.

In The Washington Post this week, Karen DeYoung reported on a $7.4 million payment to one of the eight trucking companies involved in the Host Nation Trucking contract work. DeYoung writes that the payment traveled through a complicated web of contractors and subcontractors and ultimately was deposited into an Afghan National Police commander's account, in exchange for guarantees of safe passage for the convoys.

Intelligence officials were able to trace $3.3 million, withdrawn in 27 transactions from the commander's account, that was transferred to insurgents in the form of weapons, explosives and cash.

Critically, The Washington Post article includes information that confirms our investigation findings: the Host Nation Trucking contract is fueling warlordism, extortion, corruption, and even funding the enemy.

In response to my numerous demands for action, we continue to hear from Pentagon officials that they are aggressively increasing oversight over these contracts and taxpayer money. But so far it has been all talk and no action.

At my request, current Subcommittee Chairman Jason Chaffetz has announced that the National Security Oversight Subcommittee will continue investigating these matters by holding a hearing entitled "Defense Department Contracting in Afghanistan: Are We Doing Enough to Combat Corruption?" on August 3, 2011.

I am also encouraged that, more than a year after I called the first congressional hearing on these issues, our Subcommittee's findings have finally piqued the interest of now Committee Chairman Darrell Issa (R-CA) who last night called for more information from the Defense Department.

We cannot continue to ask the brave men and women of our Armed Forces to put their lives on the line to protect our country, while we jeopardize their safety by failing to ensure that Defense Department funds are not siphoned off to warlords in Afghanistan. As the Ranking Member of the Subcommittee, I believe the new report from the military-led taskforce, which finally came to the same conclusion we reached more than a year ago, must be reviewed and we must demand from DoD evidence of changes in their contracting procedure. Additionally, while we continue to increase our pressure on the Pentagon to implement real changes, I am encouraged that Congress recently took steps to protect American funds overseas. Earlier this year, as a direct result of my Subcommittee's investigation last June, Congress passed legislation that included language I proposed to provide military commanders with additional powers to investigate and terminate contracts which have been found to be tied to insurgents.

In this time of fiscal austerity, we must scrutinize every aspect of our budget. It is truly unfathomable that, as some in Congress want to put programs like Social Security and Medicare on the table, the Pentagon continues to drag its feet on implementing more stringent oversight of how our taxpayer dollars are being spent, even allowing them to fund the enemy. It is truly distressing that our taxpayer money is funding warlordism and corruption in Afghanistan -- helping to fuel the very insurgents that we hope to remove from power. I have long been a proponent of expediting the redeployment of our tens of thousands of service members out of Afghanistan. As we press to revise our approach to addressing terror worldwide, we should act immediately to prevent tax-payer funding of insurgents targeting our troops still there.

 
Yesterday, The Washington Post reported that U.S. taxpayer money in Afghanistan is landing in the hands of the Taliban. According to The Washington Post, an unreleased military-led investigation "pro...
Yesterday, The Washington Post reported that U.S. taxpayer money in Afghanistan is landing in the hands of the Taliban. According to The Washington Post, an unreleased military-led investigation "pro...
 
 
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intolleft
ObamaTAX...getting you shovel ready
11:03 AM on 07/27/2011
Eliminating what you are calling "waste" in this article might work in the US, but when you occupy another you have to buy protection for safe passage. It's only been going on since we discovered fire.
10:24 AM on 07/27/2011
the only way to eliminate 'waste fraud and abuse' in the Pentagon is to eliminate the military. period
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intolleft
ObamaTAX...getting you shovel ready
11:04 AM on 07/27/2011
and now back to reality....
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10:04 AM on 07/27/2011
Only 13 comments thus far? I find that incredulous. This issue is huge. It's about money people paid into to receive back in the form of Medi/SS - versus - wasteful war, that nobody wanted predicated on lies. http://costofwar.com/en/
09:01 AM on 07/27/2011
Option 1: Provide US/ISAF military escort for all trucking convoys throughout the theater. Increases vulnerability of our troops and, without question, results in even more KIA and WIA. Also significantly increases the number of troops required.

Option 2: Contract out security requirements for commercial trucking services. Risk of indirectly funding "bad actors" when companies opt to pay for safe passage in lieu of fighting their way through. Companies by AFGHAN LAW are limited in the size and type of weapons they may carry (only small arms allowed) - warlords, feeling no obligation to adhere to such restrictions, simply have contractors outgunned on the roads.

Option 3: Reduce transportation requirements by reducing/eliminating foreign presence in Afghanistan.
07:27 AM on 07/27/2011
Outstanding! It is about time somebody in power took note of this. It is, after all, the job of our representatives. The reckless disregard for the guardianship and use of the PEOPLE's money is what fuels the anger of the Tea Party and the distrust of most citizens for those running the government. Waste billions by not keeping track of bribe money in Iraq or the billing of mercenaries like Xe makes citizens angry especially when the government pounds on the little guy for minor infractions. Politicians need to fix themselves and the system or history shows there will be dire consequences. If citizens believe that they get value for their taxes and that the system is somewhat fair, they will start to trust again. We are a long way from that.
07:14 AM on 07/27/2011
At the peak of the Iraqi conflict, we had 140,000 troops involved and were spending 300 million dollars a day. If we were paying each soldier 100K a year ( nice idea), that would not be 5 million dollars a day. 295 million dollars a day was going to Cheney's best friends on no bid contracts and some of the corporations were not even located in the US (KBR) so they paid no income tax or benefits to their employees. Now after 10 years, our infrastructure is crumbling and we are broke you want to feign concern?
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Robert Frank
My last name is FRANK so thats what I am..
06:49 AM on 07/27/2011
if the fraud ended how would companies like halliburton make any money? my goodness what would happen to no-bid contracts? its simply preposterous I say !!!!
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Whitemellon
04:56 AM on 07/27/2011
No. Say it ain't so. Well we can make up the loss by cutting some more services for the needy. This is not what I signed up that long ago November.
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03:08 AM on 07/27/2011
Want to solve the problem of fraud, waste, and abuse? End the wars in Iraq and Afghanistan now, then focus that money on the aging infrastructure in our country. The juice isn't worth the squeeze in Afghanistan or Iraq.
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01:46 AM on 07/27/2011
And shoddy, substandard equipment? How do we feel about risking the lives of our young people on THAT basis?

Oh ... OK ... it's fine when our own billionaires are benefiting. Gotcha.
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CenaW
Did you know AOL belongs to A L E C
11:24 PM on 07/26/2011
But how could the congress folks repay all their campaign contributors
if fraud, waste and abuse are eliminated?
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Jim Pasterczyk
Banned!
11:14 PM on 07/26/2011
The Repos don't mind spending a bit of taxpayers money as long as it goes through the right sticky fingers.
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Democrat in the South
Empathy, the most important word
10:34 PM on 07/26/2011
When I read stuff like this it makes me wonder if the Bushies and Cheneys were paying our enemies to fight us so they could keep up the indefinite war profiteering...
12:34 AM on 07/27/2011
Move along! Nothing to see here!

- MIC
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kenhamlett
09:20 PM on 07/26/2011
We should start any discussion with lowering our debt by putting on the table the costs of the endless wars and the waste in the Defense Department contracting system. But, sadly, it is programs for those most in need, along with Social Security and Medicare that are the targets and the likely victims in this ridiculous game. Meanwhile, the defense cesspool will go undrained.
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realitytrumpsbull
Two 'alves of coconut!
08:14 PM on 07/26/2011
I think 2011-2012 is going to be all about managing the budget down, before it manages US, or the U.S., and leaves us at the mercy of foreign creditors. It's time to cut, make the cuts, this is America, we'll adapt, improvise, and overcome, like we always have...troops home, 10% across-the-board budget cuts, quarterly reports to the public.