Saturday, May 01, 2010
In order to provide airplane fuel to American military operations in Afghanistan and Kyrgyzstan, the Department of Defense’s logistics agency has been doing business with two companies that have questionable backgrounds. Approximately $1.4 billion in no-bid contracts were awarded to Mina Corp. Ltd. and Red Star Enterprises by the Defense Logistics Agency, even though the companies may have been involved with corrupt officials in Kyrgyzstan.
A subcommittee of the House Committee on Oversight and Government Reform is now investigating the deals and allegations that the companies have connections to relatives of two former Kyrgyz dictators, Kurmanbek Bakiyev and Askar Akayev, each accused of corruption. Bakiyev, who overthrew Akayev in 2005, fled his country just weeks ago after a popular uprising forced him from power. Because the United States has been dependent on Kyrgyzstan’s Manas Air Base for its war in Afghanistan, both Akayev and Bakiyev held great bargaining power to gain personal contracts from the Defense Department.
The new interim Kyrgyz government is also reportedly investigating alleged improper payments, including the involvement of a U.S. citizen, Eugene Gourevitch, who is also wanted for fraud in Italy, and who was detained in Kazakhstan two weeks ago.
-Noel Brinkerhoff, David Wallechinsky
Pentagon Confirms It Gave $1.4 Billion in No-Bid Fuel Contracts to Mysterious Companies (by Mark Hosenball, Newsweek)
Kyrgyzstan: Deconstructing Manas Fuel Suppliers’ Corporate Structures (by Deirdre Tynan, EurasiaNet)
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