Showing posts with label Corruption. Show all posts
Showing posts with label Corruption. Show all posts

Tuesday, October 5, 2010

Kunar Shakedown

Last week, a Scottish development worker with DAI, Inc. was kidnapped on her way back to Jalalabad from the city of Asadabad in Kunar province.*

*That’s “out east” to those of you unfamiliar with the geography of Afghanistan.

According to reports, her two-car convoy was stopped by armed men on the road south of Asadabad and herself and three Afghans traveling with her were marched into the mountains at gunpoint. The official Taliban spokesman has said, “It wasn’t us,” but that’s really beside the point. If, as seems likely, she was grabbed by a criminal kidnap gang, the Taliban (assuming they want the hostage) will simply buy her off them for a small cash payment.

The ANP immediately rounded up some village elders from the area and asked them to negotiate her release, but they were unsuccessful.*

*According to one of my guys who is related to one of the proposed negotiators, the elders basically said to the ANP, “You want us to go up in those mountains with a police escort and try to save a foreign female infidel. Are you shitting me?”

DAI, Inc. is an “implementation partner” for USAID, which basically means that AID provides the funding and the scope/requirements of the project, and outfits like DAI go out and actually get it done. Or more accurately, they find local companies who can go out and get it done, since a lot of these projects are in unsafe areas (obviously) where Westerners fear to tread. DAI personnel maintain a project management and oversight role, with occasional trips to the project site. Except in this case, it didn’t seem to work out so well.

The missing woman was traveling low-profile, in a couple of Toyota Corollas, with three of her local staff and no security detachment.* Now I’m on record as being a proponent of the low-profile approach, but no security is taking it a little far.

*As opposed to high-profile, which usually means B6 armored SUVs, a scout vehicle and a chase car/gun truck, at a minimum. Basically “guns up” from gate to gate. A big fat rolling target in my opinion.

Perhaps she was in a bind and couldn’t wait for security, or maybe she got some bad advice. There’s even the possibility of some collusion from within the local staff. Either way, she’s gone and no one’s quite sure when/if she’s coming back.

Right on the heels of that news comes word that DAI is under investigation from the Inspector General at USAID concerning roughly $5 million USD that was paid for security on their projects and may have found its way to the Taliban as part of a protection racket.

Let me save the IG some time and a lot of paperwork.

OF COURSE THE MONEY ENDED UP WITH THE BAD GUYS.*

*Although whether they are Taliban, Hezb-islami or just garden-variety scumbags is hard to say.

When you pay cash for security directly to local power brokers in unsafe districts, it almost always ends up in the pocket of somebody you’d rather not know. Think about it. The powerful figures in these districts (every district has at least one) have the influence to pull together fifty or sixty fighters with weapons, and yet the district is still unsafe. That’s because the guys you’re paying for security are the same people who cause the problems that require the security in the first place. Where I come from, it’s called a shakedown.

I wonder if somebody at DAI got wind of the USAID investigation and froze some payment to the local security force. If so, it’s possible that this kidnapping is nothing more than an attempt to collect on some outstanding debts.

In fact, I hope that’s the case, because then it can be solved and this woman returned simply by paying out some cash. If instead she’s being held by hard-core jihadists, then it gets a lot tougher to secure her release.

Thursday, September 9, 2010

Maximizing Self-Interest

The NY Times has a good series of reports running on their website currently, written by a US Army lieutenent who was stationed in Kandahar. Unlike most of the high-level analysis offered by traditional news sources, Lt. Srinavasan's stuff is local, personal and micro-scale news, about his day-to-day challenges in dealing with Afghans in his sector. (I believe that he's writing about stuff that happened on his recent deployment, rather than posting real-time events.)

His latest column is chock full of interesting tidbits about the intricacies of dealing with locals, and neatly captures the shift that comes over an officious Afghan army officer when he realizes that he's not going to be able to take advantage of the newbies.

Unfortuately, the lieutenent's conclusions are probably spot-on:
But Captain Kalay represented to me the greatest frustration and disappointment of all: no matter how many troops, how much time, or how much money we throw at Afghanistan, no democracy can take hold and nothing will change unless this country’s leaders want it for their own nation. Captain Kalay is a powerful man — he has no incentive to want anything more than the status quo.........I was right about one thing though; this is indeed a math problem, not only to me, but also to Captain Kalay and every Afghan leader in this country. It’s about the maximization of self-interest. No matter how much Captain Kalay likes me, or even identifies with me, it doesn’t change the fact that he will act only to maximize his personal gain.

The truth of that was recently brought home to me when I was alerted to the fact that a man I considered a close friend in Afghanistan, and one of the best Afghans I had met thus far, was not as clean and as honest as I thought he was. He wasn't stealing from me directly, but he had kept certain information to himself and taken credit and profited personally from something I had worked very hard on. To make matters worse, the story of his deception was provided to me by another Afghan I had also considered to be trustworthy, but the revelation is causing me to question the trust I place in him as well.* Now I'm left wondering what kind of payment he will expect in return for revealing this secret.

*And yes, I did confirm the story through independent sources.

First installment of Lt. Srinavasan's story here. Second and third, here and here.

Thursday, July 8, 2010

Even Capone Had a Lawyer

Disgraced journalist* Gerald Posner, who was a lawyer in a previous incarnation, has now decided to return to his professional roots by taking on a few new clients.


*Is the term "disgraced journalist" at risk of becoming redundant, like "slimy lawyer" or "corrupt politician?"


Apparently, he's decided that the way to reenter the legal profession is to seek out the most oppressed, maligned and downtrodden people he can find, and then write laughably stupid letters to the editor on their behalf. So, he trolls the world for suitably aggreived clients and settles on..................the Karzais? WTF?


Specifically, Posner, in a letter posted on the WSJ online, objects to the WSJ's earlier characterization of Mahmood Karzai (younger brother to Hamid) as a money-launderer and smuggler. Mahmood was one of two Afghans personally named in the recent report (although of course he's hardly the only one suspected of moving large sums of cash to Dubai).


After conducting his own interview with his new client, Posner concludes:
Mr. Karzai has never transferred large amounts of cash out of the country. He is willing to take a lie-detector test on this matter. This unproven and false accusation hurts him since he is the only Afghan businessman I'm aware of who is investing his money into the country—in large real-estate projects in Kandahar and the nation's infrastructure, such as its only cement plant*— rather than taking money out as many others have done. No Afghan businessman or politician or public figure is more transparent than Mahmood Karzai.

Is he seriously claiming that Mahmood Karzai is "the only Afghan businessman" investing money into the country? That's beyond stupid; it's insultingly stupid. Even my moronic boss, The Rug Merchant, no angel himself, has invested millions of US dollars into Afghanistan, and facilitated the investment of millions more.


*And those real estate deals and the cement plant? Hardly examples of free enterprise at work. There's only one cement plant in Kandahar because Ahmed Wali Karzai, the President's other brother (the really naughty one) only allows one cement plant in Kandahar, so he can charge what he likes to construction companies. Monopolistic extortion. The real estate deals are based on the Afghan conception of emminent domain, basically "I have more guns than you, so get the hell off your land and give it to me so I can rent it to foreigners, OK?"


According to Charles Homans at Foreign Policy, Posner is representing other members of the Karzai clan as well, including older brother Qayum and the aforementioned Ahmed Wali. Posner is quoted as saying, "They're really proud of the reputations they have earned." That statement is so bizarre I can't even begin to ridicule it.*


*Although I suspect that Ahmed Wali Karzai truly is proud of his reputation as the "King of Kandahar." It's just that he's so far gone as to actually believe that he is a virtuous and magnamimous emir, rather than a brutal thug and petty tyrant.


On the upside, I don't think anyone can accuse Posner of plagarizing this stuff, since no one else would ever consider writing it.

Sunday, July 4, 2010

Bill Shaw, Free and Clear

Well, a while back I promised a post on Bill Shaw, the ArmorGroup country manager who was convicted of bribery in Afghanistan and jailed for two years in Kabul's notorious Pul-i-Charki prison.

I had planned to discuss the definition of "bribery" as it applied to this case, as well as the rather obvious double standard at work in Afghan justice.

Alas, my procrastination has made all of that somewhat irrelevant. The BBC is reporting that Shaw will be released in the next few days and repatriated to the UK as soon as practicable. The official reason is that an appeals court found a "lack of evidence" to sustain the conviction. A secondary reason is the probable behind the scenes pressure from the British embassy that got him sprung early.

In the end, the Karzai administration made their point that it's not only Afghans who are involved in corruption here.* PSC employees are put on notice that the government is keeping a close eye on them, and government functionaries are now terrified of the omnipresent anti-corruption police.

*The are certainly the bulk of it, but Westerners are hardly as clean and pure as they sometimes claim.

I'm hesitant to call what Shaw did "bribery" but there really isn't a better word for it. He claims that he was told the $20,000 USD he paid to the Customs Department was fine for improper licensing. I don't doubt that's what he was told, but I am highly skeptical of his claim of ignorance. He knew perfectly well that it was an off-the-books "service fee." We've all done it, myself included.* I suspect that, if a proper accounting could be made, one would find that millions of unaccounted dollars have changed hands simply to navigate the difficult maze of licensing B6 armored vehicles. Bill simply had the bad luck to be made the poster-child for Karzai's attempt to deflect criticism from his own shortcomings.

*Don't ask what happened to the brown envelope full of cash that was in my safe until a few days ago. It was a "service fee."

Either way, I'm glad he's out. Pul-i-Charki is a hellhole on par with Black Beach Prison in Equitorial Guinea. Most who go in for any length of time are never heard from again. I doubt that even a man reportedly as tough as Bill Shaw could have survived two years in there.

As a side note, despite the "lack of evidence" found by the appeals court, the conviction of Shaw's interpreter and bodyguard was upheld and he's facing another eight months inside. I hope that ArmorGroup won't forget that one of their employees is still in peril. How we treat our local nationals is a good indication of the true nature of a private-security company. ArmorGroup still has an outstanding debt to be paid to Maiwand Limar. Assuming he lives long enough to collect.

Monday, June 14, 2010

$1 trillion USD of.......oh, screw it.

ISAF military operations, corruption in the government, strategic planning by the Obama administration, the weaknesses of current counter-insurgency theory, and all sorts of other Afghanistan-centered topics generate a predictable response in the blogosphere. Often the commentary is juvenile, hyperbolic or just plain wrong, but generally it barely rises beyond the level of nitpicking among COIN specialists or partisan hackery. There's often an undertone of negativity and defeatism, as the old saying about "bad news selling more papers" applies just as accurately to blog traffic, but no single article usually creates quite the firestorm that seems to have ignited over this article in the NY Times.

Maybe it's the overwhelming eminence of The Grey Lady, or perhaps their oft-perceived liberal bias or maybe simply the fact that the headline seemed custom-made to demand investigation and counter-point.*

*Here's a fun mental exercise: skim any major US paper (or British for that matter), reading only the headlines. Formulate in your head your own perception of the days events, and then go back and actually read the articles. I'm betting that the headline-induced perception is significantly different than the reality described in the articles.

To summarize, underneath a headline that read, "U.S. Identifies Vast Riches of Minerals in Afghanistan," the text of the article went on to say:

The United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself, according to senior American government officials.

That's a pretty shocking headline, and an exceptionally bold opening paragraph. The rest of the article includes phrases like "the vast scale of Afghanistan's mineral wealth," "stunning potential" and (my personal favorite) "the Saudi Arabia of lithium."*

*Afghanistan is probably one of the few countries that aspires to be the "Saudi Arabia" of anything. Personally, I'll take decadent poverty over the Vice and Virtue Police.

Apparently, there are potentially significant deposits of iron, copper, cobolt, gold, lithium and something called niobium.*

*So who gets to name these things anyway? Is "niobium" really the best name we could come up with for a mineral? Sounds like a particularly unimportant part of a dog's salivary system. "Well, if you ever want Sparky to lick his own ass again, we'll have to remove his infected niobium."

As the article goes to great lengths to emphasize, all of this is potentially hugely beneficial for Afghanistan. Mining, especially for iron and copper, is largely low-skilled industry, which suits Afghanistan's total lack skills rather nicely. I assume that lithium, cobolt and niobium require a bit more technology and know-how to extract, but still the revenue would be nice for a cash-strapped government. Someday, in the distant future, maybe these deposits will generate some revenue for the government. It will take billions of dollars of foreign investment, not to mention replacing a tenacious insurgency with a functioning government, but at least it's possible.

I'm no optimist when it comes to the eventual fate of this 12th century shithole, and the article didn't sufficiently address the difficulties and dangers of this possible bonanza. It also fails to clarify where the $1 trillion USD figure came from, or when this "discovery" was actually made (Hint: the guys who originally stumbled on this had the hammer and sickle on their passports). But even I was a little put off by the exceedingly negative "gotcha" reaction of the blogosphere.

A sampling:

*Is it just me, or is Ricks' constant harping on the supposed "unraveling" in Iraq starting to sound like a guy hoping for a predicition to come true, regardless of the consequences? Things in Iraq are not good, but are ever so slowly getting better, but sometimes I think Ricks would prefer that the country falls apart so he can stand up and say "I told you so!"

Tomorrow, a sampling of some reactions from actual Afghans to the supposed news that their country holds impressive mineral wealth, along with a few thoughts of my own. In the meantime, there are plenty of more relevant, interesting and important articles in the NY Times recently. For examples, see here and here.

N.B. Apologies for the "wall of text" but I couldn't find a way to communicate the salient points in more concise language. Verbosity was always one of my faults.