Media Operations Centers in Afghanistan: $7.2Million Build/Suspend and Demolish Projects

— Domani Spero
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They’re called MOCs or Media Operations Centers (MOCs). We’re building them in Afghanistan.  One State Department grant was for the construction of one MOC at Balkh University for $3,782,980. A second grant was for the construction of another MOC at Nangarhar University for $3,482,348. The grant awards totaled $7,265,328, and the periods of performance for both grants were October 1, 2013, through December 31, 2014.   According to State/OIG, these grants were executed in Afghanistan by Omran Holding Group (OHG) with two subcontractors, Capitalize Omran—a company based in Washington, DC, responsible for managing the overall project—and TriVision Studios, the firm responsible for outfitting the MOCs with broadcasting equipment. Apparently, the contraction construction related to both grants was suspended in January 2014 and has not resumed. On September 18, State/OIG recommended the immediate termination of the two grant agreements. Why?

Based on preliminary results of the audited sample, OIG identified areas of concern related to two construction grants being executed in Afghanistan by Omran Holding Group (OHG) that require immediate attention. These areas of concern include misuse of Government funds, significant noncompliance with Federal regulations, and inaccurate financial reporting. Additionally, OHG failed to comply with the terms of one grant agreement by beginning construction without required design approval, and also began construction of the building in the wrong location. We therefore recommended, among other actions, that the Bureau of South and Central Asian Affairs (SCA) immediately terminate grant agreements S-AF200-13-CA-012 and S-AF200-13-CA-014 with OHG, and that the Bureau of Administration’s Office of the Procurement Executive (A/OPE) develop Department guidance regarding the use of Federal assistance funds for overseas construction.

 

So one MOC was constructed without the required design approval:

“The grants required that the recipient develop building designs for the MOCs and that these designs be approved by the Department prior to the commencement of construction. However, OHG “jumped” the construction schedule and began to construct the Balkh University MOC in December 2013, without prior approval from the Department. As a result, certain aspects of the newly constructed structure were not in accordance with the Department’s requirements for the building design.”

The same MOC was constructed in the wrong location, and had to be demolished no later than October 31, 2014.

“OHG began the Balkh University MOC construction in the wrong location, based on the direction of a local Afghan government official who did not have the authority to direct the grantee, resulting in the need to demolish the new structure.” 

How did we end up from design/build to build/demolish?

State/OIG may have an answer:

“OIG also noted concerns related to the Department’s oversight of construction grants, in general. Specifically, the Department had no policies or procedures for awarding or overseeing construction grants, which resulted in ineffective construction grant agreements. For example, the OHG grant agreements lacked details that are normally included in construction contracts, and the terms and conditions were created by the GOR without documented input or approval from Department legal representatives or construction specialists.”

The Bureau of South and Central Asian Affairs (SCA) and the Special Representative for Afghanistan and Pakistan (SRAP) concurred with the recommendations with the later noting that the termination letters for each award are currently in the clearance process. A response from the SRAP also notes that the Public Affairs Section (PAS) at embassy Kabul has “obligated more than 975 awards totaling over  $270,000,000  under extraordinarily challenging circumstances.”

Think about that for a moment.

We don’t know how many MOCs have been constructed in Afghanistan, but in January 2013, the State Department announced a $325,000 award for “the completion of the PAS-funded Media Operations Center (MOC) at Herat University”and a maximum award for $200,00 for the  the operation and maintenance of this facility for a period of up to 24 months.  In spring 2013, the US Embassy in Kabul also announced the inauguration of a state-of-the-art Media Operations Center (MOC) at Kabul University.  The Embassy provided a $2.67 million grant to the HUDA Development Organization, to build and equip the Media Operations Center there.

So just to round-up, our precise and active verbs for these Afghanistan projects now include: design, build, suspend,complete, equip, maintain, and demolish. Also terminate.

Although, possibly, terminate is only good until a new grantee can be located to complete these grants.

Read the audit here (pdf) and weep.

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