SIGAR

SIGAR OVERSIGHT ACTIVITIES
at both the ADB and MOPW in order to secure the contract award; that
ASM JV lacked the technical and financial capacity to competently perform
this large, complex project; and, that it had failed a December 2015 prequalification
evaluation conducted by Hill International (Hill), an American
engineering consultant firm MOPW had hired to help administer the project.
Despite this, elements in ADB and MOPW continued advocating for ASM JV
to be awarded the contract. In July of 2016, ASM JV was given a request for
proposal (RFP) for the contract; the two companies who scored higher in
pre-qualification were not given an RFP.
In August 2016, after an extensive investigation involving numerous
interviews and reviews of emails and official records associated with
MOPW, ADB, and Hill, SIGAR officials notified Afghan President Ghani, via
official letter, of the investigative findings, including evidence indicating corruption
surrounding the award selection process.
After submitting the written notice to President Ghani, SIGAR held meetings
with relevant high level officials at the palace, including members of
the National Procurement Authority (NPA) and presidential advisors at the
palace. All the officials expressed appreciation for SIGAR’s investigative
work and pledged to work closely with SIGAR to root out the corruption in
the contracting process.
Officials of the NPA worked closely with SIGAR special agents. Their
expertise and knowledge provided useful information which greatly
assisted in identifying the issues of corruption and other irregularities in the
matter. Advisors to President Ghani stated that SIGAR’s investigation confirmed
their suspicions that there was something “fishy” about the contract
process and subsequent sole-source selection of ASM JV. They said SIGAR’s
investigative findings and continued support would prove helpful toward
addressing the allegations of corruption and toward recommending a new
open bidding for the project.
Afghan officials acknowledged they were facing extreme, high-level
political pressure in this matter and that SIGAR’s findings would help in
responding to it. Officials at the MOPW agreed the award process could not
move forward as planned and that ASM JV appeared to have an inappropriate
relationship with individuals representing ADB.
In October 2016, officials from the presidential palace notified SIGAR
that the palace had terminated the sole source selection of ASM JV. The
palace determined that the contract for Ring Road Project sections 1 and 2
would go to an open tender in which any company could bid and compete
in a transparent and honest process.
As a result of SIGAR’s investigation and subsequent close coordination
with officials of the NPA and the Palace, a $99 million, improperly
awarded, sole-source contract was terminated, avoiding excessive costs to
the financing entity, to which the United States is a lead contributor.
REPORT TO THE UNITED STATES CONGRESS I JANUARY 30, 2017
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