US embassy cable - 01ABUJA2990

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