Afghan National Security Forces: Limited Visibility over Fuel Imports Increases the Risk that U.S.-Funded Fuel Purchases Could Violate U.S. Economic Sanctions against Iran

Abstract

Afghanistan is largely dependent upon imports for meeting the majority of its energy needs and Iran, together with Russia and Turkmenistan, are the leading countries of origin for its fuel imports (see enclosure I for more information on Afghanistans fuel imports). The U.S. economic sanctions program is intended to stop the flow of money into Iran and to shut off Iranian access to the U.S. financial markets. It prohibits virtually all trade and investment activities with Iran by U.S. personsand to some degree third-countriesand with U.S. funds, including the financing of trade in Iranian oil or petroleum products refined in Iran (see enclosure II for more information on the U.S. economic sanctions program against Iran). The fact that the United States has paid for the acquisition and delivery of imported fuel for the Afghan National Security Forces (ANSF)nearly $1.1 billion for the Afghan National Army (ANA) alone between fiscal years 2007 and 2012raises concerns that U.S. funds could have been used to pay for imports of fuel potentially in violation of US economic sanctions against Iran. SIGAR initiated this review in response to allegations it received of potential violations of U.S. sanctions in the purchase of fuel for the ANSF and to follow up on key issues regarding Afghanistans fuel imports identified in our quarterly reports and audits and investigations of ANA fuel. In this review, we sought to identify whether sufficient controls have been established in the ANSF fuel supply process to ensure the use of U.S. funding complies with U.S. and international sanctions against Iran. This review did not assess any procedures in place for assuring the quality of fuel imports purchased for the ANSF.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 2013
Accession Number
AD1141072

Entities

People

  • John Sopko

Organizations

  • Special Inspector General for Afghanistan Reconstruction

Tags

Communities of Interest

  • Energy and Power Technologies
  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Acquisition
  • Afghanistan
  • Commerce
  • Contractors
  • Contracts
  • Economic Sanctions
  • National Security
  • Nuclear Proliferation
  • Petroleum
  • Security
  • United Nations
  • United States
  • Websites

Readers

  • Defense Financial Management and Audit.
  • Nuclear Non-Proliferation and International Security
  • Petroleum Engineering