TERRORIST PAKISTAN - BILLIONS IN U.S. AID DOWN THE TOILET

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Dr. Jai Maharaj

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PAKISTAN - BILLIONS IN U.S. AID DOWN THE TOILET

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Via NY Transfer News Collective All the News that Doesn't Fit

[Consider the sources: Anonymous US military officials. Sounds like the
US military establishment is getting ready to flush Musharraf,
perhaps. The Pakistanis are bristling at the criticism. Rice's fumbling
State Dept. meanwhile is hanging onto the myth that Pakistan is a valued
allied in the war on "terror." (See second item) -NYTr]

The New York Times - Dec 24, 2007

http://www.nytimes.com/2007/12/24/world/asia/24military.html

U.S. Officials See Waste in Pakistan Aid

By DAVID ROHDE, CARLOTTA GALL, ERIC SCHMITT and DAVID E. SANGER

ISLAMABAD, Pakistan b After the United States has spent more than $5
billion in a largely failed effort to bolster the Pakistani military
effort against Al Qaeda and the Taliban, some American officials now
acknowledge that there were too few controls over the money. The
strategy to improve the Pakistani military, they said, needs to be
completely revamped.

In interviews in Islamabad and Washington, Bush administration and
military officials said they believed that much of the American money
was not making its way to frontline Pakistani units. Money has been
diverted to help finance weapons systems designed to counter India, not
Al Qaeda or the Taliban, the officials said, adding that the United
States has paid tens of millions of dollars in inflated Pakistani
reimbursement claims for fuel, ammunition and other costs.

bI personally believe there is exaggeration and inflation,b said a
senior American military official who has reviewed the program,
referring to Pakistani requests for reimbursement. bThen, I point back
to the United States and say we didnbt have to give them money this
way.b

Pakistani officials say they are incensed at what they see as American
ingratitude for Pakistani counterterrorism efforts that have left about
1,000 Pakistani soldiers and police officers dead. They deny that any
overcharging has occurred.

The $5 billion was provided through a program known as Coalition
Support Funds, which reimburses Pakistan for conducting military
operations to fight terrorism. Under a separate program, Pakistan
receives $300 million per year in traditional American military
financing that pays for equipment and training.

Civilian opponents of President Pervez Musharraf say he used the
reimbursements to prop up his government. One European diplomat in
Islamabad said the United States should have been more cautious with
its aid.

bI wonder if the Americans have not been taken for a ride,b said the
diplomat, who spoke on condition of anonymity.

Lawmakers in Washington voted Thursday to put restrictions on the $300
million in military financing, and withheld $50 million of that money
until Secretary of State Condoleezza Rice certifies that Islamabad has
been restoring democratic rights since Mr. Musharraf lifted a state of
emergency on Dec. 16. The measure had little effect on the far larger
Coalition Support Funds reimbursements.

While it was a modest first step, any new conditions in aid could have
a major effect on relations between the United States and Pakistan.
Pakistanbs military relies on Washington for roughly a quarter of its
entire $4 billion budget.

In interviews, American and Pakistani officials acknowledged that they
had never agreed on the strategic goals that should drive how the money
was spent, or how the Pakistanis would prove that they were performing
up to American expectations.

After Six Years, a Plan

Early last week, six years after President Bush first began pouring
billions of dollars into Pakistanbs military after the attacks of Sept.
11, 2001, the Pentagon completed a review that produced a classified
plan to help the Pakistani military build an effective
counterinsurgency force.

The plan, which now goes to the United States Embassy in Islamabad to
carry out, seeks to focus American military aid toward specific
equipment and training for Pakistani forces operating in the Federally
Administered Tribal Areas where Qaeda leaders and local militants hold
sway.

For their part, Pakistani officials angrily accused the United States
of refusing to sell Pakistan the advanced helicopters, reconnaissance
aircraft, radios and night-vision equipment it needs.

bThere have been many aspects of equipment that webve been keen on
getting,b said Maj. Gen. Waheed Arshad, the Pakistani militarybs chief
spokesman. bThere have been many delays which have hampered this war
against extremists.b

United States military officials said the American military was so
overstretched in Iraq and Afghanistan that it had no advanced
helicopters to give to Pakistan. American law also restricts the export
of sophisticated drones, night-vision goggles and other equipment for
security reasons.

There is at least one area of agreement. Both sides say the
reimbursements have failed substantially to increase the ability of
Pakistani forces to mount comprehensive counterinsurgency operations.

Today, with several billion more in aid scheduled for the coming years,
American officials estimate it will take at least three to five years
to train and equip large numbers of army and Frontier Corps units, a
paramilitary force now battling militants.

bI donbt forecast any noticeable impact,b a Defense Department official
said. bItbs pretty bleak.b

The programbs failures appear to be a sweeping setback for the
administration as it approaches its final year in office. American
intelligence officials say they believe that Mr. Bush is likely to
leave office in January 2009 with the Qaeda leader Osama bin Laden
still at large.

bWe havenbt had a good lead on his exact whereabouts in two years,b
another senior American military official lamented recently.

Al Qaeda More Active

This spring, American intelligence officials said the Qaeda leaders
hiding in Pakistanbs tribal areas had reconstituted their command
structure and become increasingly active. Backed by Al Qaeda,
pro-Taliban militants have expanded their influence from the remote
border regions into the more populated parts of Pakistan this year and
mounted a record number of suicide bombings in Pakistan and Afghanistan.

The Coalition Support Funds program was intended to prevent that from
happening. Under the program, Pakistani military officials submit bills
and are paid for supplies, wear and tear on equipment and other costs,
as well as for the American use of three Pakistani air bases, according
to American officials.

The United States since 2001 has deposited more than $5 billion in
reimbursements into the Pakistani governmentbs general budget account,
the largest single portion of some $10 billion in aid to Islamabad in
that time. Also included in that larger amount is $1.9 billion in
security assistance, which Pakistan has used in part to buy new radios
for troops, night-vision goggles and refurbished Cobra attack
helicopters.

Pakistani officials say the Coalition Support Funds money goes into the
national treasury to repay the government for money already spent on
100,000 troops deployed in the tribal areas. But American military
officials say the funds do not reach the men who need it. That is
especially the case for helicopter maintenance and poorly equipped
Frontier Corps units.

During a recent visit to the border, an American official found members
of the Frontier Corps bstanding there in the snow in sandals,b
according to the official. Several were wearing World War I-era pith
helmets and carrying barely functional Kalashnikov rifles with just 10
rounds of ammunition apiece.

bIt is not making its way, for certain, we know, to the broader part of
the armed forces which is carrying out the brunt of their operations on
the border,b the senior American military official said.

Members of Congress also express growing frustration with the Coalition
Support Funds program.

bThe situation in the tribal areas seems to be getting worse, not
better, and thatbs despite a billion dollars in aid,b said Senator Jack
Reed, a Rhode Island Democrat on the Armed Services Committee who
visited Pakistan in fall 2006. bJust pouring the money in and asking
them to do this is not producing the results that we need.b

Complaints Over Support

The most glaring example of the Coalition Support Funds programbs
failure is helicopter maintenance, according to both Pakistani and
American officials. In an interview with The New York Times last month,
Mr. Musharraf complained specifically that a lack of American spare
parts and assistance had handicapped the countrybs 20 refurbished
Vietnam-era Cobra attack helicopters provided by the United States.

bTen days back, of 20 Cobra helicopters, we have only one that was
serviceable,b he said. bWe need more support.b

In interviews, American military officials scoffed at the statement.
They said the United States had provided $8 million worth of Cobra
parts in the past six months and would provide $4 million to $6 million
in parts next year.

In addition, Washington reimbursed Pakistan $55 million for helicopter
operation and maintenance costs for an eight-month period in 2007,
American officials said. The United States later found out that the
army received only $25 million from the Pakistani government for
operations and maintenance of their entire national helicopter fleet
for the whole of 2007.

American officials said they suspected that Pakistan had been
overcharging for helicopter maintenance. Yet at the same time,
maintenance of Pakistani helicopters is not being performed.

bCome March or April,b one official said, bI fully expect catastrophic
failure of a large part of their helicopter fleet.b

For years, how money from the Coalition Support Funds was disbursed to
the Pakistani government was veiled in secrecy. The size and scope of
the payments to Pakistan was held so closely that one senior American
military officer in Afghanistan said that he did not know that the
administration was spending $1 billion a year until he attended a
meeting in Islamabad in 2006.

bI was astounded,b said the officer, who would not speak for
attribution because he now holds another senior military post. bOn one
side of the border we were paying a billion to get very little done. On
the other side of the border b the Afghan side b we were scrambling to
find the funds to train an army that actually wanted to get something
done.b

But by mid-2007, the $1 billion-a-year figure became public, largely
because of the objections of some military officials and defense
experts who said that during an ill-fated peace treaty between the
military and militants in the tribal areas in 2005 and 2006, the money
kept flowing. Pakistan continued to submit receipts for reimbursement,
even though Pakistani troops had stopped fighting.

Even then, however, American officials said there was little effort to
rethink the purposes of the aid, or impose stricter controls.

Defense Department officials in the United States Embassy in Islamabad
check the claims and ensure the receipts are well substantiated,
officials said. The Pentagonbs comptroller and State Department then
also certify the claims.

Dov Zakheim, who served as the Pentagonbs top financial officer until
2004 and helped set up the program in late 2001, said in a telephone
interview that while he was at the department, the military carefully
checked whether Pakistan carried out the operations it claimed and
typically approved only 80 to 90 percent of each invoice.

But by July 2006, the Pentagon comptroller and Central Command were
concerned enough about insufficient accountability to dispatch a team
to Pakistan to lay out new requirements for more detailed invoices, a
Pentagon spokesman said.

And by that fall, senior military officials at the embassy in Islamabad
were telling visiting American lawmakers that the support fund program
needed to be revamped to pay for specific objectives.

Inflated Invoices

Today, American officials say they believe that some of the invoices
are inflated by as much as 30 percent.

bThe claims that they submit are probably in some cases exaggerated and
the amounts inflated,b said the senior American military official who
had reviewed the program. bWhen it comes to reimbursement for the cost
of food, bunker material, barbed wire fences, those are much more
susceptible to inflation.b

Even the efforts to send Pakistan the refurbished Cobra helicopters,
for instance, have cost more than expected and have fallen behind
schedule. Pakistani forces have received only 12 of the 20 aircraft
promised, and have been dissatisfied with the quality of them, a senior
Pentagon official said.

One retired Pakistani military official said the American system of
paying reimbursements did not allow for any forward planning. He
expressed irritation that the Americans offered help, but not advanced
American attack helicopters and drones, which are vital for
counterinsurgency in the inaccessible tribal areas.

Praising Pakistanbs new army chief, Gen. Ashfaq Parvez Kayani, who took
command after Mr. Musharraf resigned as the head of the army last
month, American military officials called for a complete restructuring
of American military aid to Pakistan. They said that the United States
should supply the same amount of overall military assistance to
Pakistan, but also require that it be supplied under traditional
military aid programs with tighter controls.

But they fear that members of Congress will react to the troubled
reimbursement program by slashing military aid to Pakistan.

bItbs not all or nothing,b the senior American military official said.
bYou need to regulate and manage it for more benefit both to Pakistan
and the United States.b

[David Rohde and Carlotta Gall reported from Islamabad, and Eric Schmitt
and David E. Sanger from Washington.]



[On the other hand, the Pakistani Post is reporting Boucher's claim that
another $785 million for F-16s is on track for 2008... -NYTr]

Pakistan Post - Dec 24, 2007

http://thepost.com.pk/Ba_ShortNews....=14&bstatus=Current&fcatid=14&fstatus=Current

New law has no link with F-16s deal: Boucher

$785m US assistance due in 2008

Lauds Islamabad's anti-terrorism efforts

Says Washington actively working to ensure free polls

WASHINGTON: US Assistant Secretary of State for South and Central Asia
Affairs, Richard Boucher has said that despite new Congressional
restrictions on the $50 million security assistance to Pakistan, there
will be no impact on the supply of F-16 aircraft to that country.

Boucher also said that the release of $50 million out of a total of
$300 million in counterterrorism aid is not subject to certification
but would be based on a report by the Secretary of State Condoleezza
Rice on Pakistan success in the War on Terror and its democratic
development. "We are confident that we will be able to report to the
Congress on developments in the areas that they have identified," he
added. He also acknowledged Pakistan's continued counter terrorism
efforts and welcoming the recent steps taken by Islamabad including a
decision to lift the state of emergency.

APP adds: The Bush Administration is confident of unhindered supply of
security assistance to Pakistan and has made it clear that the new
Congressional restriction on a portion of annual counterterrorism aid
does not in any way affect the top South Asian ally's purchase of F-16
fighter jets.

In terms of the use of the money, Boucher explained, the administration
has used it for foreign military financing and it is very much part of
the counter-terrorism effort. "It goes to TOW missiles. It goes to
tactical radios that their forces can use to plan military operations.
And it goes to support the programme for P-3C aircraft that help them
do maritime patrols."

Pakistan is currently, for the second time, in command of the Combined
Task Force 150 that patrols the seas off Pakistan and the Arabian Gulf
to prevent terrorist activities on the high seas. "And the P-3
programme is a complement to that, so they can work better with us and
others in protecting their neighbourhood from threats of terrorism on
the high seas. So, in a variety of different ways, our military
programmes serve to support their capability," he added.

Pakistan, a key war on terror ally, is due to receive $785 million
($350 million in economic and $300 in security fields) assistance
through the fiscal year 2008. A major part of security assistance $250
million would be available immediately for the financial year that
began on October 1, 2007. In response to a question, Boucher disagreed
with a suggestion that during the emergency rule, the country lost
ground to militants as he cited the success of a major counterterrorism
operation in Swat valley, stating that a lot of militants were
eliminated and a radio station run by them was shut down. However, he
added, the country needs both democratic transition and the fight
against extremism to establish a very solid basis for Pakistan as a
moderate nation and society.

To a question about the US support for strengthening the Frontier
Corps, the US Assistance Secretary of State said, "The Pakistani
request for help in transforming the Frontier Corps into a capable
security force in the border areas is one that we are very supportive
of and sympathetic to." "They are doing things already in terms of
training and transfers of equipment and the like. So we really do want
them to be better trained and better equipped."

In response to a question about Pak-Afghan relations, the
counter-terrorism efforts and the upcoming visit of Afghan President to
Pakistan, Richard Boucher said. "Whenever we look at Afghanistan, it's
really the whole Afghanistan-Pakistan border area and equation that
comes up consistently. And so we have meetings on Pakistan, we have
meetings on Afghanistan, we have meetings on both together. But I think
we're always looking at that relationship."

"And frankly, we welcome the progress that has been made. The jirgas
last fall were very important. I think we're very glad to see the
process of dialogue continued. President Karzai's visit was just
announced to Pakistan, another important step in that regard." "And we
hope that this contributes to moving forward jointly against terrorism
and also moving forward jointly in terms of how to develop the border
areas, to give those people industry and opportunity."

"So we have our own contributions, whether it's funding or going for
Reconstruction Opportunity Zones in those areas. But we're very
supportive of what they can do together and hope they can make
progress." When asked about the prospects of next week's meeting
between President Musharraf and President Karzai, Boucher said, "I
think they will both talk about what we can do to have a better control
at the border, have better pressure on the militants, so they can't
move back and forth, so they can't threaten both Afghans and
Pakistanis."

The United States is actively working with the government and people of
Pakistan to ensure the holding of free, fair and transparent elections
on January 8. "We are very much focused on the election and we are very
actively working with Pakistan, with Pakistani civil society, Pakistani
government, Pakistani leaders to try to keep moving towards an election
that's as transparent and fair and free as possible", Richard Boucher
said.

To a question, Boucher said, "I think its incumbent upon all of us now
Pakistanis, Americans and international observers to think, what can we
do to make this election as good as possible so that it ends up being a
fair representation of what the Pakistani people want. That's what
we're focused on". "We are sending out a lot of observers. We're
continuing to push for more openness in the media, we're continuing to
work very hard on issues that the political parties have raised".
"We've had an active dialogue. Our ambassador talks to people in the
government about these issues. And we hope to see continued steps to
ensure fair elections", he added.

Richard Boucher also talked about the strengthening of the Election
Commission and referred to the $13 to $15 million funds given to the
election commission over the last year or two. "There are still, I
think, things that can be done for the election commission in the
longer terms", he added.


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