| From the DoD IG ... | February 2012 |
 The purpose of the “DoD IG Update” is to make the organization more transparent. Transparency is one of the ways we can demonstrate how we live up to our core values of accountability, integrity, efficiency, and excellence. If you have any questions or suggestions, please reply to IGUpdate@dodig.mil.
UPCOMING REPORTS Significant reports expected to be released within the next 30 days include:
Recently Released Reports of Interest (to view report, if available, please click on title) Afghan National Police: Assessment of U.S. Government Efforts to Train, Equip, and Mentor the Expanded Afghan National Police (ANP) – Metrics (Report No. DODIG-2012-034). The Afghan government and international community set the goal of having the Afghan army and police take the lead in their security operations in all Afghan provinces by the end of 2014. This assessment captures indicators (metrics) that address three key areas concerning ANP development: Growth, Quality, and Afghan Transition. This report is Classified. Interagency Coordination Group of Inspectors General for Guam Realignment Annual Report for Calendar Year 2011. The report summarizes the activities of the Interagency Coordination Group during calendar year 2011 and the activities under programs and operations funded with amounts appropriated or otherwise made available for military construction on Guam. The report includes a detailed statement of all obligations, expenditures, and revenues associated with such construction. This report is required by Section 2835 of the FY 2010 National Defense Authorization Act. Evaluation of DoD Contracts Regarding Combating Trafficking in Persons (CTIP): U.S. European Command and U.S. Africa Command (Report No. DODIG-2012-041). The DoD IG reviewed a sample of 267 Department of Defense contracts for compliance with the “Trafficking Victims Protection Act of 2000.” This is the third in a series of congressionally directed reports examining contract performance in Combatant Command geographic areas with a heightened risk for trafficking in persons. This report focused on the U.S. European Command and U.S. Africa Command areas of responsibility, specifically Germany, Italy, and the United Kingdom.
Summary Report on DoD's Management of Undefinitized Contractual Actions (Report No. DODIG-2012-039). The DoD IG concluded DoD contracting personnel did not consistently comply with statutory and DoD requirements for managing undefinitized contractual actions, resulting in the Government assuming additional risk in the award and negotiation process and possibly paying more profit than necessary. This summary report is the sixth and final report in a series of reports and is part of a congressionally mandated periodic review of DoD use of undefinitized contractual actions. Army Needs to Identify Government Purchase Card High-Risk Transactions (Report No. DODIG-2012-043). The objective was to determine whether Army Government Purchase Card (GPC) transactions, identified as high-risk by the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics using the Purchase Card On-Line System (PCOLS), were made in compliance with applicable laws and regulations. This audit uncovered prohibited item procurement and purchase splitting resulting in non-competition. DODIG identified that 17 noncompliant transactions valued at $1.2 million were made on cards issued by eight Army contracting offices. The Army detected only one of the transactions. Two of the transactions resulted in more than $1 million in potential Antideficiency Act violations. The Army did not detect these noncompliant transactions because they did not use a data mining system, such as PCOLS, to identify high risk transactions. First Whistleblower Reprisal Complaint under American Recovery Act Substantiated – Fort Worth, TX. Officials within the DoD IG Whistleblower Reprisal Investigations directorate substantiated that a contractor employee, who made a disclosure protected under the American Reinvestment and Recovery Act (ARRA), Section 1553, "Protecting State and Local Government and Contractor Whistleblowers,” was wrongfully terminated from employment for disclosing contractor personnel, pay, and benefits discrepancies in the contract directly to a Government official. The report of investigation was provided to the Recovery Accountability and Transparency Board as required by statute. This report is marked For Official Use Only. DEFENSE CRIMINAL INVESTIGATIVE SERVICE HIGHLIGHTS (to view DoJ press release, if available, please click on title)
Whistleblower Lawsuit Results in $702,000 Settlement. Engineering Systems Solutions, Inc. and its owner and CEO, Vishnampet Jayanthinathan, allegedly overbilled the U.S. Army for work performed by ESS employees. ESS was subcontracted to provide mobile communication systems that it designed, integrated, and assembled. A former ESS employee filed a whistleblower lawsuit under the civil False Claims Act alleging some of the work was performed by employees who lacked the qualifications and expertise required by the contract. On January 10, 2012, Engineering Systems Solutions, Inc. and Jayanthinathan agreed to pay the U.S government $702,000 to settle these allegations. DoD Contractor Sentenced for Fraud Related to Iraqi Reconstruction Contracts. Richard Lopez Razo, a former DoD contractor, allegedly solicited kickbacks and bribes from Iraqi companies in exchange for confidential bid information and assistance in obtaining reconstruction contracts in Iraq. On January 19, 2012, Razo was sentenced in federal court to 33 months confinement for two counts of conspiracy and committing wire fraud. In addition to the jail time, Razo was ordered to pay $106,820 in restitution. This was a joint investigation by DCIS, FBI, and Special Inspector General for Iraq Reconstruction. Former TRICARE Doctor Jailed for $42 Million Healthcare Fraud Scheme. Anthony Francis Valdez, owner of the Institute of Pain Management, allegedly submitted false claims for payment to Medicare, Medicaid, and TRICARE over a period of five years for which he was paid an estimated $42 million. The procedures were either not performed or were not reimbursable under those programs. On July 1, 2011, Valdez was convicted on multiple counts including conspiracy, health care fraud and money laundering. On January 6, 2012, Valdez was sentenced to 25 years in federal prison in connection with the fraudulent billing scheme. In addition to losing his medical license, Valdez was ordered to pay over $13 million in restitution, forfeit more than $1.7 million in cash and property, and pay a judgment of more than $9 million. This case was investigated by DCIS, FBI, the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, and the U.S. Postal Inspection Service.
Assessment of the Afghan National Security Forces Command and Control System. The objective of this project is to assess Department of Defense plans and efforts to develop the Afghan National Security Forces Command and Control (C2) System and to make recommendations to improve the effectiveness of these endeavors and functions to the commands, Joint Staff, and OSD. Assessment of U.S. Military Cemeteries. In accordance with the National Defense Authorization Act for Fiscal Year 2012, the objective of this assessment is to determine the adequacy of and adherence to the statutes, policies, and regulations governing the management, oversight, operations, and interments or inurnments (or both) by those cemeteries, less those of the U.S. military academies, under the jurisdiction of the military departments. Audit of Procedures for Recovery of Organizational Clothing and Individual Equipment. The objective of this audit is to determine whether the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics established a working group and developed and implemented procedures to recover organizational clothing and individual equipment from contractors and civilians. Audit of Building Institutional Capacity Through the Defense Institution Reform Initiative. The objective of this audit is to determine the effectiveness of the Defense Institution Reform Initiative (DIRI) in identifying and sustaining the defense capabilities of its partner nations. Specifically, the audit will determine whether the DIRI process effectively supplies partner nations through country coordination, requirements determination, and program management. Audit of the U.S. Army Corps of Engineers, Civil Works, Information Systems Supporting Critical Infrastructure. The objective of this audit is to determine whether U.S. Army Corps of Engineers, Civil Works, personnel implemented effective procedures and security controls over critical infrastructure to protect against unauthorized access to information systems that support water control structures from physical and cyber threats F-22A Mishap. This project will assess the U.S. Air Force Aircraft Investigation Board (AIB) accident report of the F-22A mishap of November 16, 2010. Evaluation of the Military Criminal Investigative Organization (MCIO) Sexual Assault Investigative Training. This review will evaluate whether MCIO sexual assault investigative training adequately supports the Department. Specifically, the reivew will focus on: the content of the MCIOs training regarding sexual assault investigations; how the MCIOs ensure sexual assault investigative training is effective; and whether the MCIOs leverage resources and expertise with one another. ____________________________________________________ |
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Joint Investigation Prevented Iran from Obtaining U.S. Jet Engines. Amparo Echeverri-Valdes and Carlos Pantoja-Coral allegedly conspired to sell a total of 22 J-85 jet engines for export to Iran, and to help export the engines from Miami to Iran through Panama. The U.S. Iran Embargo prohibits exportation of any goods, technology, or services from the U.S to Iran, with limited exceptions. On September 2, 2011, both defendants pleaded guilty to one count a piece of conspiring to export fighter jet engines from the U.S. to Iran. On December 16, 2011, Echeverri-Valdes and Pantoja-Coral were each sentenced to 24 months incarceration. This investigation was conducted jointly by DCIS and Homeland Security Investigations.