Colum Lynch
Foreign Policy
October 1, 2010

  • A d v e r t i s e m e n t
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A prominent U.S. contractor in Afghanistan may have inadvertently funneled millions of dollars in U.S. taxpayer dollars to Taliban insurgents in the form of bribes and protection money, according to a review by the inspector general of the U.S. Agency for International Development (USAID).

The suspected payments were allegedly made by Afghan subcontractors of Development Alternatives, Inc. (DAI), a company based in Bethesda, Maryland that carries out USAID reconstruction projects in some of Afghanistan’s most remote and risky war zones. Afghan representatives of the company in Jalalabad are also under investigation for charging kickbacks to Afghan companies in exchange for USAID contracts, according to the report.

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A spokesman for the company said that it has fired 17 Afghan employees who operated at or near the company’s Jalalabad office, and restored greater international auditing and oversight over the operations.

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