http://alongthemalecon.blogspot.com/2013/01/the-redacted-usaid-shell-game.html#more


SATURDAY, JANUARY 26, 2013
The [redacted] USAID shell game
<http://1.bp.blogspot.com/-mx2WKuhc_ec/UQSHKyMUEgI/AAAAAAABd8s/r8fEz4DiHMY/s1600/shell-game.jpg>
A U.S. government force with a reputation for speed and daring plans to
spend as much as $2.5 billion over the next eight years to try to bring
peace and democracy to trouble spots and flash points around the world.
The Office of Transition
Initiatives<http://transition.usaid.gov/our_work/cross-cutting_programs/transition_initiatives/>,
or OTI, has a long list of potential targets, including Cuba.
OTI, which is part of the Agency for International
Development<http://usaid.gov/>,
or USAID, operates some programs openly, but disguises others so the
American government role is not readily apparent.
During a meeting with contractors in June 2012, Stephen Lennon, chief of
OTI’s Field Program Division, highlighted the group’s ability to cloak its
activities while in Colombia from 2007 to 2011.

<http://3.bp.blogspot.com/-BvhRC8BBL68/UQSKUsRxGII/AAAAAAABd9k/M31IOzBdNsA/s1600/soccer-ball.jpg>
OTI was asked to go in and we did. And we didn’t go in as the U.S.
government. In Colombia, nothing was branded. Nothing was branded USAID. It
was all - that’s right, soccer balls from the Colombian government, Acción
Social (a Colombian government agency). We had a couple of different brands.
What we did was create entities that looked, smelled, acted like they were
the Colombian government and we worked very very closely with the Colombian
government and the Colombian military to project their presence. (See 78-page
transcript<https://docs.google.com/file/d/0B6Mo1c2bIFLWdF83RFItQXg2SmM/edit> of
the meeting).

Perceptions matter, Lennon told the group.

For example, OTI might support an activity with the local government to
repair a school. OTI would measure its success based on how that activity
improved attitudes and perception toward the government in that community
rather than how the refurbished school impacts educational outcomes.

OTI was created in 1994 as "a small experimental
office<http://en.wikipedia.org/wiki/Office_of_Transition_Initiatives>
managing
$10 million in program funds in two countries." Its annual budget has since
grown to more than $56 million and it has spent some $2 billion in dozens
of countries.
OTI operated in Cuba from September 2007 to September 2011, but public
documents don’t give detailed or complete descriptions of its work or how
much was spent.
Finding the money is like following the pea in a shell game.
USAID’s website in 2007 showed that the agency had set aside $8.63 million
for an OTI program in Cuba described as “support youth-led independent
media initiatives.”
<http://2.bp.blogspot.com/-Qnv0qz1waYY/UQQHQmUUjhI/AAAAAAABd1c/mqFWhl_G-_4/s1600/crs-page.jpg>Fleeting
evidence of OTI's $8.63 million Cuba programA Congressional Research
Service report noted the $8.63 million in May 2009.
But by October 2009, USAID's website no longer listed the program. It had
vanished.
So what happened to the $8.63 million?
Only traces of OTI’s Cuba spending appeared in the State Department’s
Congressional Budget Justification for Foreign Operations reports released
in 2010 <https://docs.google.com/file/d/0B6Mo1c2bIFLWaXdwa2c3UHpZblk/edit>
(page
74 <https://docs.google.com/file/d/0B6Mo1c2bIFLWYk9tR3BjaGNxQVU/edit>);
2011<https://docs.google.com/file/d/0B6Mo1c2bIFLWMjdPc0JhRTZCQm8/edit>
 (page 105<https://docs.google.com/file/d/0B6Mo1c2bIFLWWVRmSFViUnMtVWc/edit>)
and2012 <https://docs.google.com/file/d/0B6Mo1c2bIFLWM3hlanJfVDVOcHc/edit>
(page
103 <https://docs.google.com/file/d/0B6Mo1c2bIFLWaDV0dks2T2JRTEE/edit>). The
amounts listed were:

   - $174,000, 2009
   - $198,000, 2010
   - $202,000, 2011
   - $125,000, 2012

That comes to $699,000 - nowhere near the now-you-see-it, now-you-don’t
$8.63 million.
So what happened to the rest of the money?
<http://4.bp.blogspot.com/-kCnlSVqE7Dc/UQRcsry3KyI/AAAAAAABd3Q/MV8FS6PFM3s/s1600/usaid-2009.jpg>
A July 2009 
report<https://docs.google.com/file/d/0B6Mo1c2bIFLWSUxpZnBfSjFHdDg/edit>
to
Congress dropped a few clues, revealing that OTI’s Cuba program had two
parts.

   1. A pilot program aimed at boosting the flow of information on the
   island, expanding Internet access, developing networks and training
   activists. This contract went to Freedom House, a non-profit organization
   in Washington, D.C.
   2. A program to create "people-to-people" links between “non-traditional
   civil society actors” and “like-minded regional organizations.” Creative
   Associates International, a private contractor in Washington, D.C., ran
   this program.

<http://4.bp.blogspot.com/-YMbhr6t5xA8/UQRimVwUbUI/AAAAAAABd4g/aO6V8oKkKRQ/s1600/oti-graphic.jpg>From
one of three audits:
Freedom House reported $563,931 in OTI money in January 2009Let's start
with part 1: We pick up the money trail by digging into federal audits that
Freedom House is required to file.
In 2009 and 2010, Freedom House reported spending $1,460,541 on an OTI
program called New Media Initiatives in Cuba (see
audits<https://docs.google.com/file/d/0B6Mo1c2bIFLWb2NLWlBGcHJTYjg/edit>
).
In October 2011, I requested further information about the New Media
Initiatives program under the Freedom of Information Act, or FOIA.
In response, USAID in May 2012 released a
document<https://docs.google.com/file/d/0B6Mo1c2bIFLWR1RFUlp1YXAwTzA/edit>
showing
that Freedom House had operated the $1.47 million Cuba project from
September 2007 to June 2009.
<http://1.bp.blogspot.com/-HEQ2G1vY6Yk/UQReJICQ1sI/AAAAAAABd3s/4gAbGlRDX64/s1600/1-million.jpg>Breakdown
of spending is redactedThe agency redacted key details, including a cost
breakdown showing how much was spent on:

Consultants, travel and transportation, subgrants, other direct costs,
salaries and wages, fringe benefits, supplies, communications, printing,
bank transfer fees, overhead.

Also blacked out were the names of personnel. USAID withheld the project
proposal in its entirety, and heavily censored the program description.
(See USAID's 
explanation<https://docs.google.com/file/d/0B6Mo1c2bIFLWbmJrWkVfdThBOEE/edit>
).
The censored program description read:

Through New Media Initiatives for Cuba, Freedom House seeks to blend its
recent successes in strengthening [*redacted*] for reform [*redacted*]
created [*redacted*] Cuban audience. Recognizing the achievements of Cuba's
[*redacted*] Freedom House identifies an opportunity for Cuba's [*redacted*]
to proactively reach out to an information starved population with [*
redacted*].

<http://1.bp.blogspot.com/-96WQoqhkl8Y/UQRdRkH2ZpI/AAAAAAABd3g/j3D2dVpF8Hw/s1600/program.jpg>USAID:
Redacted "R" UsOTI’s agreement with Freedom House said the organization
wasn't required to include its usual branding with material it distributed.

...due to the political sensitivity of the program, USAID will not require
any attribution to USAID or to the U.S. Government in any materials that
will be distributed on the island.

Moving on to part 2: Creative International's money trail is harder to
follow because it is a for-profit company with fewer reporting
requirements. The company isn't obliged, for instance, to submit reports to
the Federal Audit Clearinghouse <http://harvester.census.gov/sac/>. And
Creative's website <http://www.creativeassociatesinternational.com/> doesn't
say diddly about Cuba, although it does mention Costa Rica - more on that
in a moment.

<http://2.bp.blogspot.com/-AKd04f1Oc-c/UQSBIBpXl0I/AAAAAAABd70/zJx6-TyQlXA/s1600/creative1.jpg>

A required State Department notification to Congress in March 2011
contained some basic information about Creative's OTI contract, called
“Outreach to New Sectors of Cuba Society.”
The document<https://docs.google.com/file/d/0B6Mo1c2bIFLWX3JLa0t5SElCRkk/edit>
 stated:
<http://4.bp.blogspot.com/-Viaib7_Q58Y/UQRq7iDQLgI/AAAAAAABd5Y/Dz7yAVlHrDY/s1600/charito.jpg>Creative
CEO Charito Kruvant

These funds will support OTI's existing contract, which seeks to reach out
to new sectors of Cuban society to expand the network of independent actors
working together toward positive, democratic change on the island. The
program identifies emerging leaders and groups and creates
"people-to-people" linkages between nontraditional civil society actors on
the island and NGOs in the region.
Organized as a regional exchange program, these organizational linkages
facilitate the
strengthening of grassroots participation, organization and networking
designed to coalesce citizens to work together at the local level on issues
of common interest and concern to average Cubans.
These funds will also be used to encourage initiatives and programming that
support the development of economic rights, especially among marginalized
populations such as women and Afro-Cubans. Such civic-based programs will
have the added benefit of promoting individual economic initiatives,
thereby reducing reliance on the state.

The document also listed $250,000 for oversight, but that certainly didn't
mean public oversight.
In 2011 - 468 days ago - I filed a FOIA request with USAID for documents
related to Creative’s programs in Cuba. USAID acknowledged the request, but
has not provided any documents.
Records show the agency in 2008 gave Creative the first installment of what
was to be a three-year $15,535,979 contract to carry out a sensitive OTI
operation.
The mission involved establishing a secret base in Costa Rica that would
support democracy activists in Cuba.
<http://3.bp.blogspot.com/-tsJ10lSflDU/UQR-AJ0w9yI/AAAAAAABd7Y/8yBG-CEWIa0/s1600/raul-castro.jpg>Raúl
CastroOTI had rushed to launch its Cuba program in 2007 because U.S.
officials thought the country was on the verge of change. A program
document stated:

With President Fidel Castro’s resignation after 49 years in power and the
recent selection of Raul Castro as his successor, Cuba is, at the very
least, undergoing a symbolic transition that might signal a broader
democratic political transition in the near future...
>From a political development perspective, the “debate critico” may be
creating an important political opening for the people of Cuba and for
USAID/OTI engagement. Nearly six years later, Raúl Castro remains in power.

Contract documents show that Creative eventually received around $11
million, falling $4,365,308 short of the $15.5 million contract amount.
<http://1.bp.blogspot.com/-cvqaS0FDEXc/UQR8VpecDyI/AAAAAAABd68/foGqQUcQazE/s1600/Satellite_Image_Photo_Costa_Rica_Central_America.jpg>Costa
RicaRecords also show that the company shut down its Costa Rica office.
Neither Creative nor USAID has ever explained why or acknowledged the
existence of the operation.
OTI's work sometimes leads to "political entanglements," according to a May
2009 CRS report entitled, “USAID’s Office of Transition Initiatives After
15 Years: Issues for
Congress<https://docs.google.com/file/d/0B6Mo1c2bIFLWZ3BqSlpITU00MGc/edit>
."
Marian Leonardo Lawson, a foreign aid specialist at CRS, wrote:

While OTI is subject to the same restrictions on political activities as
other USAID programs, such as the prohibition on activities designed to
influence election outcomes, its work often lends itself to political
entanglements that may have diplomatic implications. This appears to
be particularly true when OTI activities support pro-democracy groups
opposed to the existing government. In such instances, critics sometimes
accuse OTI of destabilizing rather than stabilizing civil society.

<http://3.bp.blogspot.com/-ICfZLZq_QMw/UQSCBNkRFRI/AAAAAAABd8A/FP6a06Vow6g/s1600/wash-post.jpg>Evo
Morales, left, with Hugo Chavez. Photo: Washington PostHugo Chavez in
Venezuela and Evo Morales in Bolivia have both accused USAID of meddling in
their internal affairs. Lawson wrote:

Though the allegations may be unsupported, they exemplify possible risks:
OTI programs can be problematic both because they raise concerns about the
appropriateness of U.S. involvement in foreign politics, and because they
make it easier for leaders such as Chavez and Morales to undermine popular
support for opposition groups by labeling them as American agents. That OTI
is not always forthcoming about its politically sensitive activities may
have the unintended consequence of making all claims about U.S. ties to
foreign organizations seem credible.

It’s unclear if OTI has pushed Cuba any closer to democracy. Its Cuba
programs are largely hidden from public view, unaccountable to taxpayers
and Congress.
USAID is more open about its work in such countries as Tunisia and Sri
Lanka. The agency's website shows OTI activities, dollars spent and even
program 
evaluations<http://transition.usaid.gov/our_work/cross-cutting_programs/transition_initiatives/pubs.html>.
But Cuba doesn't appear anywhere.
Now, OTI is again seeking out daring souls to carry out its operations in
far-flung spots around the globe.
OTI expects to award as many as 14 contracts totaling as much as $2.5
billion under its new program, “Support Which Implements Fast Transition
IV,” or SWIFT IV. (See OTI's 29-page
pre-solicitation<https://docs.google.com/file/d/0B6Mo1c2bIFLWUHAyM1FaYlhkZk0/edit>
 document).
*Much of the money will likely go to established, politically connected
contractors. Big names include Casals & Associates, AECOM, DynCorp
International, Chemonics International, Creative Associates International,
DAI, International Resources Group and dTS.*
The contractors would carry out the projects over five years, then there
would be a three-year period for follow-up work.
Some of the work may be classified. The OTI contract states:

Task orders under this contract may involve classified performance... In
order to be considered for a classified task order, the contractor must
obtain and maintain a "Facility Clearance" at the "Secret" level.

Some 176 countries - practically all but the most developed nations - are
listed as potential targets of OTI programs.
When deciding where to establish programs, OTI considers four questions:

   - Is the country important to U.S. national interests?
   - Is there a window of opportunity?
   - Can OTI’s involvement significantly increase the chances of success?
   - Is the operating environment sufficiently stable?

<http://3.bp.blogspot.com/-KyuXrMMAHpg/UQR6mk0bekI/AAAAAAABd6g/8zWTQufx8cw/s1600/farc_female_fighter_2011_05_25.jpg>FARC
soldier. Photo: GlobalPostOTI’s goal in Colombia was to help the Colombian
government reestablish control over territories once dominated by the
Revolutionary Armed Forces of Colombia, or FARC, which began fighting the
government in 1964.
Projects included:

   - Scholarships for children of war veterans
   - Technical assistance to farmers
   - Health centers, roads and drainage systems

A USAID program
evaluation<https://docs.google.com/file/d/0B6Mo1c2bIFLWN0JRSUM3MWJjd2s/edit>
 stated:

The relative anonymity of the OTI programs made it possible for the GoC
(government of Colombia) to be seen as a credible provider of services.

During the June meeting with contractors,
Lennon<https://docs.google.com/file/d/0B6Mo1c2bIFLWdkdxMDBubEFFZ2c/edit>
said
OTI carried out a counter insurgency program in Colombia.

I truly believe that OTI does the best counter insurgency work on the
civilian side in U.S. government. And if you read counter insurgency
doctrine, it’s 80 percent civilian. And we did it in Colombia.

OTI Director Rob Jenkins said his office has a "unique culture."
<http://2.bp.blogspot.com/-F1OlP-NgWvw/UQR4uprXpOI/AAAAAAABd50/8KHiidqEAO0/s1600/Jenkins.jpg>Rob
Jenkins

It’s a culture of innovation. It’s a culture of challenging what you think
is the truth. It’s a culture of learning.
We consider ourselves a learning organization before that phrase became
something that everyone started using.
We’re a very small office trying to do very big things. Without partners,
we cannot do anything.
Now what is it that we are implementing together? It’s simple: We try to
change the world. That’s it. And we’ve attracted an amazing team of very
motivated fantastic people.
Now you’ll see our mission statement... is to advance U.S. foreign policy.
And we take that very seriously. It’s a huge responsibility.
Our unofficial mission statement that I use is that, OTI makes a critical
difference in the most critical places at the most critical times. Our job
is to assault the impossible to make it possible and then consider it
achieved. Our job is to go into the darkest places and shed some light. Our
job is to find places that need hope and provide it.

Posted by Tracey Eaton
<https://plus.google.com/111602208738806329244>at Saturday,
January 26, 
2013<http://alongthemalecon.blogspot.com/2013/01/the-redacted-usaid-shell-game.html>


[Non-text portions of this message have been removed]



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