Reuters is quoting from a recent audit by SIGAR (Special Inspector General for Afghanistan Reconstruction), so their reports seem to get more credibility (see earlier post that Deloitte is writing them). You can find SIGAR audits at www.SIGAR.mil , and the 24 page SIGAR audit report discussed below can be found HERE. The audit report content and format is clearly much better than earlier ones, so I bet Deloitte was involved in perhaps writing as well as designing the report.
I reviewed the report and it is much more professional than earlier reports. The main issues were that the new High Office of Oversight (HOO - isn't that a hoot?) was understaffed, underfunded, and not independent. Not a very good situation. I have earlier posts of articles by the HOO Director.
They don't mention that the Afghan government already has a 300 person anti-corruption commission, but it was not known for being effective. Then there is the CAO (Chief Administration Office) which is really the financial auditors for the government reports, issuing external financial audits of the ministries. Then there is a long running Inspector General program which I dealt with earlier this year. And the MoF (Ministry of Finance) has pretty current Inspector General group trained by UNDP. I found the IG's, CAO and MoF to be at much higher levels than those I encountered in Iraq, but they all need protection when reporting bribery or corruption. If they had true independence and ability for direct prosecutions, without hindrance or delays, they might not need HOO as much.
It is sad to say, but UNDP does a much more effective job of training auditors and finance people than our own USAID, which kind of ignores the whole oversight area.
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U.S. faults Afghan corruption body's independence
WASHINGTON (Reuters) - The anti-corruption body formed by Afghan
President Hamid Karzai suffers from "serious shortcomings" and lack of
independence, with its top staff also serving as advisers to Karzai,
said a U.S. audit on Wednesday. The audit by the Special Inspector General for Afghanistan
Reconstruction, was harshly critical of the High Office of Oversight,
or HOO, established in July 2008 by Karzai to oversee and coordinate
efforts to fight corruption, which is seen by Washington as fueling the
insurgency in Afghanistan. The report said the anti-corruption institution was hugely
understaffed and lacked the organizational and budgetary independence
to be an effective oversight body. "The HOO suffers from serious shortcomings as an institution both in
terms of its operational capacity and the legislative framework on
which it is based," said the report." Corruption is seen as pervasive and entrenched in Afghanistan, which
the watchdog group Transparency International ranked as 179th out of
180 on its annual corruption index this year. Washington has made clear that fighting corruption must be a
priority for Karzai in his new term and has cautioned him against
putting "cronies" in important posts. But the audit said the "personal independence" of both HOO's
director-general and deputy were impaired because they also served as
advisers to Karzai, who was re-elected following a fraud-marred August
election. "I believe that holding two government positions simultaneously,
compromises the independence of the HOO and can, and in this case does,
create a conflict of interest," said Arnold Fields, the Special
Inspector General for Afghanistan Reconstruction, or SIGAR, whose role
is to oversee U.S. taxpayer funds spent in Afghanistan. QUIT ONE OF POSTS The report said both officials should resign either their HOO posts
or their advisory positions for Karzai, whom they met with frequently
before the election. "HOO leadership may have been distracted because of the 2009
election," said the report, adding that one "knowledgeable" official
noted the deputy director-general had often acted as Karzai's
speechwriter. So far, the Afghan anti-corruption oversight body had received about
$1 million in U.S. funds to cover start-up costs, said the report. It
is also set to get a further $7.3 million from the United Nations
Development Program. "With this money, the HOO has undertaken anti-corruption efforts with varying degrees of progress," said the report. Citing other impairments to the HOO's independence, the report said
its operating budget was administered by the Afghan government. Another problem was staff shortages. Of the 500 employees in the
body's organizational chart, only 20 percent -- or 100 -- of those
positions were filled. In addition, its oversight department had filled only 10 out of an
authorized 52 positions and the complaints department did not have a
proper database. (Editing by Peter Cooney)
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