Senators Ayotte, Brown Renew Call for Stronger Contracting Oversight in Wake of Alarming Reports

Press Release

Provisions of "No Contracting with the Enemy Act" Would Keep U.S. Money Out of Enemy Hands

Senators Kelly Ayotte (R-NH) and Scott Brown (R-MA), both members of the Senate Armed Services Committee, today renewed their call for strengthening oversight of U.S. funds for reconstruction projects in Afghanistan, following two recent reports that found U.S. taxpayer money had been indirectly funneled to corrupt powerbrokers and insurgents, including the Taliban.

Senators Brown and Ayotte introduced the "No Contracting With the Enemy Act" in February, aiming to make it easier for U.S. contracting officials to void contracts with contractors who funnel taxpayer resources to enemies of the United States, such as the Taliban. At a meeting of the Senate Armed Services Committee in March, General Petraeus highlighted the urgency of legislation that would achieve the goals of the Brown-Ayotte bill, testifying that it was needed "the sooner the better."

"These reports highlight troubling shortcomings that must be addressed," said Senators Brown and Ayotte in a joint statement. "Our military in Afghanistan has taken steps to develop better oversight of contracting, but more must be done. With better oversight and with the authorities provided by our provisions, DOD contracting officials will be able to more effectively ensure our money does not end up in the hands of those attacking our troops. The Senate should move quickly to address this issue and pass our provisions that are critical to the mission in Afghanistan."

According to today's Washington Post, a year-long investigation conducted by the U.S. military uncovered definitive evidence that taxpayer money intended to fund a $2.16 billion transportation contract in Afghanistan ended up in the hands of the Taliban through fraud, kickbacks, and money laundering. Another report released last week by the Special Inspector General for Afghanistan Reconstruction (SIGAR) found that, "While U.S. agencies have taken steps to strengthen their oversight over U.S. funds flowing through the Afghan economy, they still have limited visibility over the circulation of these funds, leaving them vulnerable to fraud or diversion to insurgents." Echoing General David Petraeus' September 2010 Counterinsurgency Contracting Guidance issued to U.S. and alliance military forces fighting in Afghanistan, the SIGAR report called on all U.S. agencies, including the U.S. Agency for International Development, operating in Afghanistan to improve visibility of subcontractors, integrate intelligence, plans, and operations, and ensure that contracted funds are not used to empower insurgents.

In June, key components of the Brown-Ayotte "No Contracting with the Enemy" bill were included in the National Defense Authorization Act (NDAA) passed by the Senate Armed Services Committee. These provisions in the NDAA, which awaits full Senate approval, would provide DOD contracting officials the tools they need to more quickly cut off the flow of funds to our enemies when problems are identified.

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