Over at Informed Consent, Juan Cole writes:
The [Kerry-Lugar Pakistan] aid bill is also controversial in Washington, where a US AID official has complained about the plan to funnel it through Pakistani contractors rather than through American ones. The Agency for International Development official maintained that Pakistani organizations cannot be monitored effectively by the US, raising the possibility that the money will be embezzled…
I understand the difficulty of auditing NGOs in dangerous places like the FATA tribal areas. But it seems to me that it must be possible to audit the Pakistani pass-through organizations elsewhere regularly, and that the shell game of Congress giving foreign aid to a country in a way that actually just benefits US corporations and contractors is counter-productive.
The original complaint came in the form of a “sensitive but unclassified” internal memo from US AID Development Economist C. Stuart Callison, Ph.D., criticizing the U.S. State Department’s shifts in the routing of Pakistan aid: