US fears Pak's elite will siphon-off aid

[Justin Joseph]

US fears Pak's elite will siphon-off aid

WASHINGTON: While the Obama administration prepares to start the flow of billions of dollars to Pakistan promised under the Kerry Lugar bill, a top US official has raised several concerns warning over misuse of a significant portion of the aid.

Senator John Kerry, chairman of the Senate Foreign Relations Committee, fears that a much larger portion of the fund could end up in accounts of the corrupt elite of Pakistan.

In a letter to Richard Holbrooke, President Obama's special envoy to Afghanistan and Pakistan, Kerry expressed fear that the aid, 50% of which would go directly to the Pakistan government or local partners, would be spent poorly.

US fears Pak's elite will siphon-off aid - US - World - The Times of India

 

[Justin Joseph]

US plans audit office in Islamabad to monitor aid

WASHINGTON: The Obama administration would set up a separate auditing office in Islamabad to monitor financial assistance provided to Pakistan, diplomatic sources told Dawn.

The office will monitor all assistance programmes under the Kerry-Lugar-Berman Bill, the Coalition Support Fund (CSF) and the Pakistan Counter-Insurgency Capability Fund (PCCF). The office will report to the Office of Inspector General in Washington and would employ two auditors, programme analysts and the local staff recruited in Islamabad. The Obama administration has set up a similar office for Afghanistan as well.

“It is part of their internal process,” said a Pakistani diplomat when asked for comments. “Their programme for Pakistan is America’s largest civilian aid package, so it is only natural that they would like to monitor it.”

US officials, when contacted by this correspondent, also said they had similar accountability processes for other recipients as well. “Pakistan is not being singled out,” one of them added.

However, last month, Senator John Kerry, one of the co-sponsors of the bill, sent a letter to the US State Department, saying that he feared the massive civilian aid flowing into Pakistan would be squandered or stolen. He argued that the high level of corruption in that country would make effective aid distribution a challenge.

Partly reported by Boston Globe and Dawn last month, Senator Kerry’s seven-page letter to Richard Holbrooke, the Special US Representative for Pakistan and Afghanistan, is now widely available on the internet.

“Among the Pakistani population there is already a fear that the funds will merely enrich the corrupt elite. Channelling so much of the money through untested institutions so quickly could serve to confirm these suspicions,” he wrote.

Senator Kerry highlighted the need for long-term development progress, more transparency and policy reforms in key sectors like energy.

“This administration should be as transparent and specific as possible as how US funds will be spent in Pakistan. To date, this process is largely opaque to the broader public, including our Pakistani friends and partners.”

The lack of transparency could generate suspicion and distrust, defeating the core intent of the act to help build stronger ties with the Pakistani people, Senator Kerry said.

The Dawn, Pakistani Newspaper

DAWN.COM | Front Page | US plans audit office in Islamabad to monitor aid

 

[Justin Joseph]

Senator Kerry seeks tighter control over civilian aid to Pak

Washington The massive US civilian aid flowing into Pakistan would be squandered or stolen, a powerful American Senator has said, arguing that rampant corruption in that country, would make effective aid distribution a challenge.

The red-flag has been raised by Senator John Kerry, Chairman of the powerful Senate Foreign Relations Committee, in a seven-page letter to Richard Holbrooke, the Special US Representative for Pakistan and Afghanistan.

“Among the Pakistani population there is already a fear that the funds will merely enrich the corrupt elite. Channelling so much of the money through untested institutions so quickly could serve to confirm these suspicions," he wrote.

Dated May 25, the letter is now widely available on the internet.

Such a strongly worded letter from a top US Senator comes in the wake of Holbrooke's decision to route at least 50 per cent of the aid money either through the Pakistani Government or through the Pakistani civil society or local non-governmental organisations.

So far the US aid money in Pakistan is mostly routed through the American NGOs working in the country. One of the major complaints against these US NGOs, is that they have a very high overhead cost and they finally end up doing the work by sub-contracting them through the local NGOs/workers; thus a high fraction of the aid money is wasted in transit.

However, Kerry, who has oversight responsibilities over the funds, believes that the Pakistani organisations are not ready yet to effectively spend the US aid money. "The danger is much greater than merely the possibility of a portion of funds being poorly spent," he said.

"If significant portion of the Kerry-Lugar-Berman funds are, for example, siphoned off to private bank accounts, political support for continued appropriation of the money could evaporate in Washington and Pakistan," Kerry said.

Fearing massive corruption into the US aid money to Pakistan, Kerry in his letter has highlighted the need for long-term development progress, more transparency and policy reforms in key sectors like energy.

"This Administration should be as transparent and specific as possible as how US funds will be spent in Pakistan. To date, this process is largely opaque to the broader public, including our Pakistani friend and p p-partners. This lack of transparency can generate suspicion and distrust, defeating the core intent of the Act to help build stronger ties with the Pakistani people," Kerry said.

The Administration will need to have to have a sound transition plan in place so that local Pakistani institutions are capable of handling FY 2010 funds in an accountable, effective manner, Kerry noted.

Senator Kerry seeks tighter control over civilian aid to Pak - Express India