Another Contract Debacle

One thing is clear, the Pentagon isn’t reading this blog. Last week I wrote about the ills of contract spending in Afghanistan. This week the Pentagon announced that it has awarded a 630 million dollar contract to Mina Corp, a company currently under investigation by Congress.
The Afghan contractor was given a deal to supply oil to the Manas Air Force Base in Bishkek Kyrgyzstan despite reservations from Afghan leaders. Under scrutiny, the Pentagon claims that it is primarily concerned about getting supplies to the Air Force base. The company has refused to reveal its ownership, but has been rewarded with numerous contracts amounting to more than 3 billion dollars.
A congressional investigation was launched after the suspicion of ties between one of the company’s partners and Kyrgyzstan president Roza Otunbayev. The House Committee on Oversight and Government Reform have concluded that it has discovered no evidence linking Mina Corp and the president. However, the Washington Post reported a meeting between the ousted President’s son and one of Minas’ partners. Further fueling these suspicions is the public perception of contract corruption in the small country.
This is yet another failure of congressional oversight given the apparent ties between Kyrgyz politicians and the company. The role of Mina and its ties to corrupt political practices was one of the major issues in the Kyrgyz election held last month. The major issue on the side of the U.S. is how to oversee a major contractor with government ties and very little transparency. Simply because the oversight committee cannot find apparent links, the political climate surrounding the country’s election and the announcement of the contract. The new Krygstan government wants the U.S. to buy from a government venture in order to avoid corruption. Many point to the numerous no-bid contracts that Minas has received from the U.S. in the accusations of corruption, but its obvious that the Defense Department knows something that we don’t. Despite the recent uproar and the past commotion these contracts have earned, the partnership with the company remains strong.
Photocredit: Wikimedia