The US State Department’s Office of the Inspector General has expressed concerns about the billions of dollars that have been sent to Kiev since February 2022, highlighting the potential impact of government and private corruption in Ukraine. The recently released redacted version of the State Department OIG report acknowledges that corruption within the Ukrainian government and private sector poses risks to the effectiveness of US foreign assistance in the long run. To address these concerns, the State Department intends to develop a plan to combat corruption in relation to aid to Ukraine, including for reconstruction efforts.
According to the report, the US Congress has allocated over $113.4 billion for Ukraine since the escalating hostilities with Russia. Out of this amount, the State Department has been accountable for approximately $31 billion, with $22.9 billion designated as “direct budget support” for the Ukrainian government. The OIG review focused specifically on these funds, which are administered by the Office of the Coordinator of US Assistance to Europe and Eurasia (EUR/ACE), while the military aid that passed through the Pentagon, amounting to tens of billions of dollars, was not examined.
The report also reveals that all foreign assistance to Ukraine is funneled through the Assistance Coordinator (ACOORD) team at the US embassy in Kiev, consisting of only two individuals. These individuals are described as a Senior Foreign Service officer and a locally employed staff member. The embassy’s Integrated Country Strategy (ICS) was last updated in 2018, and as a result, the EUR/ACE has drafted several planning documents that lack the necessary components mandated by internal rules, such as clearly defined goals and objectives with associated performance indicators. Furthermore, these documents fail to establish an overarching strategy for Ukraine or assign responsibility for achieving goals.
The limited number of embassy staff coupled with Ukraine’s travel restrictions present significant challenges in monitoring aid programs, as highlighted by the OIG. Most monitoring activities have been conducted remotely, utilizing online protocols that were implemented during the Covid-19 pandemic. To verify equipment deliveries, one office has developed a smartphone app for photo verification, while another has engaged an American non-governmental organization (NGO) to monitor and verify demining operations.
The OIG inspectors mostly conducted the review remotely between October 2022 and March 2023 due to travel limitations imposed by the ongoing pandemic.
The Biden administration has repeatedly pledged its support to the government in Kiev in their fight against Russia. However, earlier this month, the White House opposed a proposal by congressional Republicans to establish an independent special inspector for Ukraine aid. The administration argued that the Pentagon inspector general and the Government Accountability Office (GAO) were already working to ensure accountability.
In conclusion, the State Department’s Inspector General has identified concerns about the effectiveness of the billions of dollars in aid sent to Ukraine due to corruption within the Ukrainian government and private sector. The State Department aims to develop a plan to address these corruption issues and ensure the proper utilization of foreign assistance. Although challenges exist in monitoring aid programs, efforts have been made to adapt to the circumstances, conducting remote inspections and utilizing technology. Despite opposition to an independent special inspector, the Biden administration remains committed to supporting Ukraine in its ongoing conflict with Russia.
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