DAI yesterday terminated the employment of 10 Afghan employees for engaging in schemes to defraud the U.S. Government. Conducted in close collaboration with the U.S. Agency for International Development’s Office of the Inspector General (IG), this action—the culmination of several months’ investigation—underscores DAI’s commitment to deal with any staff member, Afghan or expatriate, whose unethical behavior can undermine good-faith efforts to stabilize and develop Afghanistan.

“Without the superb cooperation of DAI, we would not have been able to act against these corrupt individuals, whose actions were harming our development efforts at a critical time,” said IG Special Agent in Charge Dan Altman. 

“Our commitment to a strong ethics policy is non-negotiable,” said DAI President and Chief Executive Officer James Boomgard. “We do not tolerate dishonest behavior on the part of our staff and partners and we make every effort to educate them on the standards we uphold. Those that perpetrate fraud cast an unfair shadow over the vast majority of our local Afghan staff who work honorably and passionately in pursuit of their country’s development, risking and in some cases even sacrificing their lives in the process.”

All 10 staff worked for the Local Governance and Community Development (LGCD) project in the city of Kabul and the provinces of Gardez, Kandahar, Kunar, and Nangarhar. Funded by USAID, LGCD engages local governments and communities in promoting their own development, thereby building the credibility of local authorities and contributing to stabilization by offering a viable governance alternative in places susceptible to the influence of anti-government elements.

The project, which employs some 725 full-time Afghan staff nationwide, has funded thousands of small infrastructure and development initiatives such as roads, bridges, culverts, and irrigation works. These initiatives are typically subcontracted to local Afghan construction firms, and the work is monitored by LGCD staff. Many of the employees terminated today are staff members accused of demanding kickbacks from local subcontractors. Some of the terminated staff set up companies that won subcontracts to do LGCD work, without disclosing their interest in those enterprises. 

“In bringing the perpetrators of these abuses to the IG’s attention—and collaborating with the IG throughout our investigation—DAI has sent an unambiguous message that anyone trusted with the disbursement of U.S. Government funds, expatriate or Afghan, will be held to the highest ethical standards,” said Boomgard. “Deviations from those standards will not be tolerated.”

DAI first became aware of suspect transactions in 2009, and quickly communicated its concerns to the IG. DAI and the IG worked in close partnership on the investigation, using the IG’s investigative capacities to secure compelling evidence of corruption.

On June 16, staff implicated by the investigation were terminated from DAI’s employment. The terminated employees will be banned from further employment with DAI, and their names—and firms associated with them—will be shared with U.S. and Afghan Government agencies to ensure that they cannot resume their activities elsewhere. The IG will provide local authorities with all appropriate evidence with an intent to prosecute. Additional measures are also being taken to prevent further abuses of this nature.

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About DAI

DAI is an independent, employee-owned, mission-driven development organization. Since 1970, DAI has worked in 150 developing and transition countries, providing development solutions in areas including democratic governance and public sector management, agriculture and agribusiness, private sector development and financial services, economics and trade, water and natural resources management, HIV/AIDS and avian influenza control, crisis mitigation and stability operations, and energy and climate change.