by David Phinney
Thursday January 18th 2018

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Iraq’s Police Training Program Records in Disarray

by David Phinney

Oct. 23, 2007 — The State Department so terribly managed a $1.2 billion contract for Iraqi police training that it can’t figure out what it got for the money spent, a new report says (pdf).

Total Disarray: in invoices and records on the project — and because the government is trying to recoup money paid inappropriately to contractor DynCorp International, LLC — auditors have temporarily suspended their effort to review the contract’s implementation, said Special Inspector General for Iraq Reconstruction Stuart W. Bowen Jr.

Maybe investigators should look into DynCorp’s relationship with its prime subcontractor, Corporate Bank, aka, The Sandi Group, aka, TSG.

This is what I found in Sandi documents:

When DynCorp hired Sandi’s Corporate Bank in October 2004 to build a regional camp with 24 living trailers at Ad Diwaniyah, Corporate Bank billed $1,194,197. One month later, Corporate Bank then hired the Hozan General Construction Company of Baghdad for $605,000 to do the work. Similarly, DynCorp agreed to pay $833,680 for a 16-trailer camp at Al Kut. Corporate Bank then hired Hozan for $388,000. In Karbala, DynCorp agreed to pay $809,520. Corporate Bank turned to Hozan for $388,000.

Here’s a taste of those documents….

Where to Look: Other than my thumb drives, perhaps Sandi’s new office. Sources confirm that a fire broke out in Sandi’s old office in December 2006. Some say all the records disappeared. Others say the records were untouched by flames because the fire took place in the basement and first floor and all of accounting and proposals were kept on floors 2 through 4.

According to Bowen’s Report:
Records prior to October 2006 could not be validated at the State Department. However, since October 2006, incoming invoices from DynCorp have been validated.

Sandi’s Interesting Staffing:
Tim Crawley: Left DynCorp as vice president of contracting last June (2005), joined Sandi as executive vice president and general manager. At DynCorp, Crawley was responsible for “making sure that any subcontracts awarded were in compliance with all laws, regulations, and company policies — including (where required) competitive bidding, cost-price analysis, and eligibility for award of government contracts,” according to a DynCorp source. Crawley has since left Sandi, I am told.

“There’s a lot of confusion about this,” Crawley said of the contracts between DynCorp and Sandi.

Russell Hugo: Served as the Regional Director for Oversight and Support for the Department of State, Bureau for International Narcotics and Law Enforcement Affairs. In this role, he was responsible for financial controls and oversight for over twenty-five countries in Asia, Africa, Middle East and Europe — presumably including DynCorp contracts. He is now Sandi’s chief financial officer and senior vice president.
See: Marking Up the Reconstruction:

Of the seven major regional training camps … none were visited by the State Department. The government contracting officer who authorized the spending on the projects told Bowen’s investigators that he “never visited the sites” because of security concerns and that he relied on reports from others regarding the status of the camps.

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