U.S. Contract Fraud and Abuse in Afghanistan

in Business Risk

Between the start of combat operations in Afghanistan in 2001 and 2011, the United States Government has lost $360 Million from government contracts.Most of the losses were from bribery and corruption, with a small portion of the money ending up in the hands of the Taliban and insurgents.

In addition, a report by the Congressional Research Service in the United States reported that contracted projects in Afghanistan are 30 percent higher than necessary, and that the 30 percent increase in costs is due to corruption and bribe payments.

Source: Justin Elliot, “Corruption in Afghanistan: Worse than you thought,” Salon, November 17, 2011.

 Source: Associated Press, “$360M Lost to Insurgents, Criminals in Afghanistan,” ABC News, August 16, 2011.

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