U.S. to enhance its control of funds allocation to Ukraine
21 December, 2022 M777 howitzers from the USA for Ukraine.
2022 year. Photo credits: U.S. Department of Defense
The Defense Criminal Investigation Service (DCIS) will strengthen oversight of contracts that are approved under an accelerated procedure in favor of Ukraine. With Congress on track to allocate billions of dollars to help Ukraine repel Russia, the Pentagon's law enforcement agency is watching for signs of fraud and abuse in the contracts being awarded. The DCIS focus is on the Pentagon's many speedy contracting actions and on the potential black market diversion of U.S. aid.
"The risk is very real by virtue of the fact that we're dealing with such an incredible volume of items," James Ives, principal deputy director for DCIS said. The Pentagon said this month it's so far inked Ukraine-related contracts worth £9 billion, with more coming.
James Ives, principal deputy director for DCIS.
Photo from open sources
The Defense Department "is working closely with industry to produce these systems ... as quickly as possible," using undefinitized contract actions, indefinite delivery, indefinite quantity contracts, and "other tools that accelerate acquisition timelines." In an effort to head off criminal exploitation in activities related to Ukraine assistance, Ives in September led a team of DCIS investigators on a trip to a special hub in Poland. This hub deals with the transfer of foreign military equipment and supplies to Ukraine.
"It's an effort to remind folks that although we understand there's a need to engage in this accelerated procurement that's going on, there's a need to bake oversight into the process," James Ives said. Reports could come from the Pentagon workforce, which Ives called the inspector general's "eyes and ears on the ground," as well as senior leaders. Meanwhile, according to him, investigators received assurances from the Ukrainian government that its officials take this issue seriously.
"They fully understand that accountability is expected. And they're certainly aware that any issues need to be brought to the U.S. government's attention," James Ives said. Ives said DCIS coordinates with the State Department and other U.S. law enforcement agencies.
While the Defense and State Departments say they haven't found credible evidence of diversion of U.S.-provided weapons, both say they are taking steps to increase security. Ives said the inspector general's office is particularly concerned about man-portable air-defense systems, which are typically in demand on the "black market."
Defense aid from the USA for Ukraine.
2022 year. Photo credits: U.S.
Department of Defense
"Any sort of U.S. technology will be a constant target given that our nation deploys the most advanced weapons systems," James Ives said. Accelerated contracting can lead to significant fraud, waste and abuse, so oversight is paramount. "We certainly saw in Afghanistan and Iraq that some of the most significant fraud schemes we've ever seen came in the early stages of those engagements, where oversight wasn't a prime consideration.
That lesson, I believe, has been learned," James Ives said.
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