NIGERIA: ALLEGATIONS OF DOS CONTRACTOR FRAUD FOR

UNCLAS ABUJA 002990

SIPDIS


NOFORN
SENSITIVE


DEPARTMENT FOR AF/RA:BITTRICK, AF/W, AF/EX


E.O. 12958: N/A
TAGS: MARR MASS ASEC NI
SUBJECT: NIGERIA: ALLEGATIONS OF DOS CONTRACTOR FRAUD FOR
OPERATION FOCUS RELIEF


SENSITIVE BUT UNCLASSIFIED - PROTECT ACCORDINGLY



1. (U) This is an action request. Please see para 5.



2. (SBU/NF) A Pacific Architects and Engineers (PA&E)
contract employee has alleged significant contract fraud on
the part of PA&E contract employees in Nigeria. PA&E is the
Department of State contractor for Operation Focus Relief
logistics.



3. (SBU/NF) According to the employee, both expatriate and
host nation employees are involved in significant contract
fraud. Specifically, the PA&E in-country headquarters
(Abuja) accountant, a Nigerian national, and her brother, are
alleged to have colluded with other Nigerian employees of
PA&E, as well as expatriate employees, to defraud the U.S.
government. This is achieved by: overcharging for services
and equipment and pocketing the surplus; arranging for the
accountant,s extended family to be awarded contracts for
services and equipment in order to effect the overcharges;
ordering the destruction of receipts; and, threatening
expatriate employees with bodily harm if they blow the
whistle.



4. (SBU/NF) The person who made the above allegations has
been hurriedly removed as a PA&E employee and has left the
country. Other PA&E expatriate employees will leave over the
next three weeks.



5. (SBU/NF) ACTION REQUEST: Embassy requests that the
Department quickly send a joint PA&E/Department of State
audit team to investigate the matter. Time is of the
essence. Operation Focus Relief ends December 15. PA&E
Nigeria has begun shutting down operations and transferring
personnel. The nature of the allegations, given the
extensive relationship between PA&E and the department, makes
this a serious issue. END ACTION REQUEST.
Jeter