SIGAR

QUARTERLY HIGHLIGHT
appealed a suspension and debarment official’s decision
on a SIGAR-referred case to federal courts.
Suspension and Debarment in Action
A recent example of SIGAR’s suspension and debarment
program effect on the contracting environment involves
Operating Base Fenty in Nangarhar Province. Based on
a SIGAR referral, the Department of the Army debarred
Fayaz Afghan Logistics Services, its owner, and 44
employees. The issue was the theft of more than 500,000
gallons of fuel, valued at nearly $1.9 million, over a
two-year period while the contractor was providing
septic tank, laborer, laundry, water, and portable toilet
services. Due to the close relationship between SIGAR
investigators in Afghanistan and attorneys at SIGAR
headquarters in Virginia, SIGAR completed its investigation
and referred the matter to the Army on September
12, 2016, 102 days after the discovery of the loss of fuel
by the contracting officer.
Acting on that referral, the Army excluded Fayaz
Afghan Logistics Services, its owner, and all 44
employees within 48 hours. The contracting officer
and installation commander immediately terminated
the contract, prevented further loss of fuel, and
addressed the issues associated with the contractor’s
conduct. The Army debarred all of the offenders for
a period of three years. In addition, the CENTCOM
Expeditionary Contracting Command-Afghanistan
terminated all of Fayaz Afghan Logistics Services’
contracts, valued at $716,426, allowing them to be
awarded to other contractors.
Another example involves the theft of containers and
equipment by a transportation contractor at Kandahar
Airfield. SIGAR’s investigators determined that the
contractor had stolen two containers that were being
used to transport metal-frame fabrication equipment,
valued at $425,866, from Afghanistan to Denmark in
November 2014. After receiving the notice of proposed
debarment on August 23, 2016, the contractor offered
to return the containers to their owner, resulting in
the recovery of both containers and their contents on
September 7, 2016.
SIGAR Protects the U.S. Taxpayer
SIGAR’s suspension and debarment program aggressively
addresses misconduct in a manner not found
elsewhere in the U.S. government. It thereby complements
criminal prosecution and civil litigation by
applying remedies to cases that would otherwise
go unaddressed.
SIGAR’s robust use of suspension and debarment
has been recognized by the Council of Inspectors
General on Integrity and Efficiency. The Council conferred
a Special Act Award for Excellence in October
2014 on SIGAR’s suspension and debarment program.
SIGAR’s work in this area has also won support from
leading members of Congress.
SIGAR will continue to use suspension and debarment
referral opportunities to maintain the integrity
of the acquisition process and protect U.S. taxpayers’
investment in Afghanistan from waste, fraud,
and abuse.
REPORT TO THE UNITED STATES CONGRESS I JANUARY 30, 2017 57