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U.S. Payments To Pakistan Face New Scrutiny

Little Accounting for Costs To Support Ally's Troops

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Washington Post Staff Writer
Thursday, February 21, 2008; Page A01

Once a month, Pakistan's Defense Ministry delivers 15 to 20 pages of spreadsheets to the U.S. Embassy in Islamabad. They list costs for feeding, clothing, billeting and maintaining 80,000 to 100,000 Pakistani troops in the volatile tribal area along the Afghan border, in support of U.S. counterterrorism efforts.

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No receipts are attached.

In response, the Defense Department has disbursed about $80 million monthly, or roughly $1 billion a year for the past six years, in one of the most generous U.S. military support programs worldwide. The U.S. aim has been to ensure that Pakistan remains the leading ally in combating extremism in South Asia.

But vague accounting, disputed expenses and suspicions about overbilling have recently made these payments to Pakistan highly controversial -- even within the U.S. government.

The poor showing in Monday's parliamentary election by the party of President Pervez Musharraf, whose government has overseen local disbursement of the money, may make Congress look closer at all U.S. financial assistance to the country. Questions have already been raised about where the money went and what the Bush administration got in return, given that pro-American sentiment in Pakistan is extremely low and al-Qaeda's presence is growing steadily stronger.

In perhaps the most disputed series of payments, Pakistan received about $80 million a month in 2006 and 2007 for military operations during cease-fires with pro-Taliban tribal elders along the border, including a 10-month truce in which troops returned to their barracks.

The Bush administration has acknowledged some problems, but still says that the program -- part of a costly military effort known as the Coalition Support Fund -- is worth every penny. "Yes, we may have overpaid, but it's still a good deal," said a senior administration official involved in Pakistan policy, noting that more than 1,000 Pakistani troops have been killed while assisting Operation Enduring Freedom.

"Padding? Sure. Let's be honest, we're talking about Pakistan, which has a legacy of corruption," added another U.S. official familiar with past U.S. payments. "But if they're billing us $5 billion and it's worth only $4 billion, the question is whether it's worth nickel-and-diming it if it's such a top national security objective. If it's in the ballpark, does the bigger picture call for continuing on with a process that does generate significant progress on the war on terror? They do get their hands on people we can't."

U.S. officials say the payments to Pakistan -- which over the past six years have totaled $5.7 billion -- were cheap compared with expenditures on Iraq, where the United States now spends at least $1 billion a week on military operations alone.

"My sense is that the Pakistani military would not be out on the border if not for the Coalition Support Funds. That's the baseline cost of getting them out on a mission that is really our mission," said Craig Cohen, a fellow at the Center for Strategic and International Studies and the author of a recent study on U.S.-Pakistan relations.

Yet the Bush administration has recently begun to scrutinize Pakistan's bills more closely. Washington delayed payment of about $78 million of $360 million for the March-June 2007 quarter now working its way through the reimbursement process. Pakistan will receive only $282 million later this month, U.S. officials said, with additional payment once it provides more detailed accounting.

It recently rejected a Pakistani bill, officials say, for "roads and tracks" -- for its Navy operations, U.S. officials said.


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