(EST PUB DATE) SEMIANNUAL REPORT

• Document Type: FOIA
• Keywords: INSPECTOR GENERAL
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0001311516
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 75
• Document Creation Date: June 24, 2015
• Document Release Date: April 14, 2011
• Case Number: F-2007-00194
• Publication Date: December 1, 2005

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Central Intelligence Agency
Inspector General
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(b)(2)
(b)(3)
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SEMIANNUAL REPORT
TO THE DIRECTOR, CENTRAL INTELLIGENCE AGENCY
JULY - DECEMBER 2005
APPROVED FOR RELEASED DATE:
25-Feb-2010
"SEC,14,0.%
John L. Helgerson
Inspector General
Copy 0024
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TABLE OF CONTENTS
PAGE
(U) A MESSAGE FROM THE INSPECTOR GENERAL 1
(U) STATUTORY REQUIREMENTS 5
(U) AUDITS 7
(U) AUDIT STAFF OVERVIEW 7
(U) SIGNIFICANT COMPLETED AUDITS 8
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS
OUTSTANDING FROM PREVIOUS SEMIANNUAL REPORTS 15
(U) SUMMARIES OF SELECTED CURRENT AUDITS 40
(U) INSPECTIONS 41
(U) INSPECTION STAFF OVERVIEW 41
(U) SIGNIFICANT COMPLETED INSPECTIONS 42
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS
OUTSTANDING FROM PREVIOUS SEMIANNUAL REPORTS 53
(U) SUMMARIES OF CURRENT INSPECTIONS 56
(U) INVESTIGATIONS 59
(U) INVESTIGATIONS STAFF OVERVIEW 59
(U) SIGNIFICANT COMPLETED INVESTIGATIONS 61
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS
OUTSTANDING FROM PREVIOUS SEMIANNUAL REPORTS 62
(U) SUMMARIES OF SELECTED CURRENT INVESTIGATIONS 63
(U) SPECIAL REVIEWS 69
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS
OUTSTANDING FROM PREVIOUS SEMIANNUAL REPORTS 69
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(U) ANNEX SECTION
(U) STATISTICAL OVERVIEW
(U) COMPLETED AUDITS
(U) CURRENT AUDITS
(U) COMPLETED INSPECTIONS
(U) CURRENT INSPECTIONS
(U) COMPLETED INVESTIGATIONS
(U) CURRENT INVESTIGATIONS
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(U) A Message From the
Inspector General
The work of the Office of Inspector
Genera (OIG) during this reporting period
continued to concentrate on Agency activities in
Iraq and the war on terrorism. Ongoing Iraq
investigations focus on the circumstances
surrounding the movement, confinement, and in
some cases, alleged mistreatment of detainees.
OIG also is investigating a number of incidents concerning
the extraterritorial transfers of individuals and alleged abuse during
detentions outside Iraq. As a result of an investigation of a case in
Afghanistan, a former Agency contractor has been indicted on four felony
charges of assault of a detainee, who died. The trial, which has been
rescheduled for early 2006, will represent the first US prosecution of a
civilian for abuses committed in Afghanistan. OIG continues to work
closely with the Departments of Justice and Defense, as appropriate, and has
briefed the intelligence oversight committees regularly on developments in
these inquiries.
OIG is working with relevant Agency components to ensure
implementation of recommendations stemming from several
counterterrorism-related inquiries. In May 2004, OIG completed a special
review of management practices associated with a '.:overt
action program Ten
significant recommendations concerning review, revalidation, or
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modification of the program resulted. Action has been completed on most of
the recommendations, and Agency managers continue to work to complete
action on the two outstanding recommendations.
A second recommendation has been
satisfied with issuance of updated guidelines on medical care for detainees.
One other recommendation remains outstanding. As a result of a separate
investigation into the circumstances surrounding
Iwo recommendations have been closed.
(U As a result of investigations, an employee reimbursed
the government /800 for embezzlement of funds after the Department of
Justice declined prosecution. Another employee reimbursed $4,500 for
receipt of duplicate funds for training. In a third case involving civil service
annuity fraud investigated in conjunction with the Inspector General of the
Office of Personnel Management, the government recovered $107,958. In a
fourth case, the government recovered $45,045 for unauthorized cell phone
use. In two other cases, a contractor reimbursed the government $11,217 for
hours mischarged by an employee and an independent contractor made
reimbursement of $10,724 for mischarged hours. The Investigations Staff is
conducting a variety of other investigations, including possession of child
pornography, unauthorized shipments of firearms, misappropriation of
funds, fraud, and false statements and claims.
(U Personnel recruitment for the Investigations Staff
remains a priority, owing to Staff turnover and the continually expanding
workload. Three experienced Agency officers have been hired as
investigators, and employment offers have been extended to six other
individuals with Federal law enforcement experience.
(U As reported in the previous Semiannual Report, in late
June the OIG completed a special review of accountability issues identified
in the findings and recommendations of the Congressional Joint Inquiry
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Report on 9/11. While that review found that Agency officers worked hard
against the al-Qa'ida target, it concluded that, with respect to certain
matters, the Agency and its officers did not discharge their responsibilities in
a satisfactory manner. It recommended that the Director, CIA establish an
Accountability Board to review the performance of some individuals in
regard to these failures. In September, the IG briefed the report's findings to
the Senate Select Committee on Intelligence, the House Permanent Select
Committee on Intelligence, and the House Minority Leader.
(U/ In October, the Director, CIA announced that he would
not convene an Accountability Board as the IG had recommended. The
Director expressed appreciation for OIG's work, crediting in particular, its
assessment of pre-9/11 systemic problems within the Agency. Agency
Information Review Officers are currently reviewing the report in response
to several Freedom of Information Act requests.
During this reporting cycle, the Inspection Staff completed
inspections of three components and four issues. The Staff issued reports on
Europe Division in the National Clandestine Service; the Office of Asian
Pacific, Latin American, and African Analysis in the Directorate of
Intelligence (DI); and CIA University. It also completed inspections on
Research and Development in the Agency, Leadership Analysis in the DI,
and the DI's Senior Analytic Service, as well as a "Review of CIA's
Pre-9/11 Reporting on the Relationship Between Saddam's Regime and
al-Qa'ida," which Congress had requested. In the latter case, the review
found that relevant CIA reporting in the decade before 9/11 was limited to
66 reports and generally involved isolated occurrences that do not establish
patterns suggesting an organized or centrally managed relationship.
(LI/ The Inspection Staff continued its outreach program to
inspection and evaluation staffs in other agencies. Inspectors from the
Defense Intelligence Agency and the Department of Defense completed the
Staff's New Inspector Training Course in August. In addition, the
Inspection Staff has met several times with the Office of the Director of
National Intelligence IG to discuss inspection practices and procedures.
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The Audit Staff completed the first audit that is a part of an
initiative started during the last reporting period to provide more oversight
on the effectiveness of project management throughout the Agency. The
audit evaluated Facilities Support's project management practices at the
(U) The Staff completed its second annual audit of the CIA's
financial statements (for fiscal year 2005). The Staff is currently performing
audits of four covert action programs. In the information technology area,
the Staff completed an audit of the Agency's management of laptop
computers, and is performing a review of information security at field
stations.
17 January 2006
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(U) STATUTORY REQUIREMENTS
(U) This report is submitted pursuant to section 17 of the CIA
Act of 1949, as amended, which requires the Inspector General to
provide to the Director, CIA, not later than 31 January and 31 July of
each year, a semiannual report summarizing the activities of the OIG
for the immediately preceding six-month periods, ending
31 December and 30 June, respectively.
(U) All audit activities of the OIG are carried out in accordance
with generally accepted government auditing standards. All OIG
inspection and investigation activities conform to standards
promulgated by the President's Council on Integrity and Efficiency.
(U) The OIG has had full and direct access to all Agency
information relevant to the performance of its duties.
(U) Subpoena Authority
(U/
any subpoenas.
During this reporting period, the IG did not issue
(U) Legislative Proposals
(U) OIG has no proposals for legislative changes.
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(U) AUDITS
(U) AUDIT STAFF OVERVIEW
(U/ The Audit Staff conducts performance and
financial statementaudits of Agency programs and activities, and
participates with other agencies in joint reviews of Intelligence
Community (IC) programs and activities. During this period, the
Audit Staff completed 11 audits of Agency facilities management,
financial management, information technology, field stations, and
other CIA activities.
The Audit Staff completed the first audit that is a part of an
initiative started during the last reporting period to provide more
oversight of the effectiveness of project management throughout the
Agency. The audit evaluated Facilities Support's project
management practices at
While Facilities Support's management requested the audit, the Staff
is proactively performing and planning additional audits that focus
on project management.
(U) The Staff completed work on the statutory audit of the
CIA's financial statements for fiscal year (FY) 2005. The Staff
completed the second audit of this annual requirement on schedule
in November 2005. The report contains 18 recommendations, and it
encompasses the status of management's progress on
recommendations from the FY 2004 audit.
(U) The Audit Staff also continues to pursue its program, as
requested by Congress, to audit each covert action program (or an
aspect of each program) at least every third year. The Staff is
currently performing audits of four covert action programs. In the
information technology area, the Staff completed an audit of the
Agency's management of laptop computers and is performing a
review of information security at field stations.
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(U) SIGNIFICANT COMPLETED AUDITS
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(ID STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING
FROM PREVIOUS SEMIANNUAL REPORTS
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(U) SUMMARIES OF SELECTED CURRENT AUDITS
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(U) INSPECTIONS
(U) INSPECTION STAFF OVERVIEW
(U/ The Inspection (INS) Staff is responsible for
conducting inspections of Agency programs and operations to
evaluate their efficiency and effectiveness and their compliance with
law, Executive orders, and regulations.
(U/ During the current reporting period, the Staff
completed inspections of the Office of Asian Pacific, Latin American,
and African Analysis (APLAA) in the Directorate of Intelligence (DI);
CIA University (CIAU); Europe (EUR) Division in the Directorate of
Operations (D0);4 Research and Development (R&D) in the CIA;
Leadership Analysis in the DI (a follow-up to the Staff's inspection of
that issue in 2001); the DI's Senior Analytic Service; and a Review of
CIA's Pre-9/11 Reporting on the Relationship Between Saddam's Regime
and al-Qa'ida, which was mandated by Congress. In addition, the
Staff continued its inspection on Agency Performance on North
Korea and began inspections of the CounterTerrorism Center (CTC)
in the National Clandestine Service (NCS), the DI's Office of Near
East and South Asian Analysis, Information Management Services in
the Directorate of Support (DS), and Agency Performance on Russia.
(U/ I he Inspection Staff continues to conduct a two-
week course or new inspectors and a seminar for team leaders before
the start of each inspection cycle. The Staff also provides
instructional seminars for OIG inspectors and research assistants
during the course of each cycle, instituted in response to the
increasing sophistication of the Staff's methodology.
4 (U) While the titles of CIA's directorates and directorate heads recently changed, this section of
the report uses the titles in effect at the time that the inspections took place.
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(U In addition, the Inspection Staff continues to
utilize an mu epen ent contractor to track, monitor, and pursue
compliance with recommendations. The Staff has closed five
inspections?Global Support; the Office of
Transnational Issues in the DI; Director of Central Intelligence (DCI)
Center for Weapons Intelligence, Nonproliferation, and Arms
Control (WINPAC); and Latin America (LA) Division in the DO ?
that were open as of 1 July 2005. INS closed the Global Support
inspection because the period covered by five semiannual reports has
elapsed and several recommendations?none of which are
significant?remain unsatisfied.
(U) SIGNIFICANT COMPLETED INSPECTIONS
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(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING
FROM PREVIOUS SEMIANNUAL REPORTS
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(U) SUMMARIES OF CURRENT INSPECTIONS
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(U) INVESTIGATIONS
(1I) INVESTIGATIONS STAFF OVERVIEW
(U/ The Investigations Staff investigates possible
violations o statutes, regulations, policies, and procedures, as well as
allegations of waste, fraud, mismanagement, abuse of authority, and
substantial dangers to public health and safety related to Agency
programs and operations. The Staff oversees the Agency's grievance
system and conducts proactive initiatives aimed at detecting and
preventing fraud, waste, and abuse.
A majority of the Staff's personnel continue to be
devo e o resource-intensive investigations concerning detention
and interrogation activities in Iraq, Afghanistan, and elsewhere.
These investigations focus on the circumstances surrounding the
detention, movement, confinement, and alleged abuse of detainees.
?Two investigations completed in this period concerned the
Other ongoing
investigations are bein.g conducted in conjunction with the
Departments of Defense and Justice, as appropriate. The trial of a
former Agency contractor indicted on four felony counts of assault of
a detainee, who died, has been rescheduled for early 2006. This
matter is the first US prosecution of a civilian for abuses committed
in Afghanistan. The Inspector General regularly informed the
Congressional oversight committees of progress in these
investigations.
(U The Staff conducted a range of other
investigations, including allegations of fraud by employees and
contractors, possession of child pornography, misuse of a
government intelligence collection system, unauthorized shipments
of firearms, misappropriation of funds, and false statements and
claims. Judicial proceedings are under way in several cases. The
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Staff, additionally, tracks the progress by Agency components in
fulfilling outstanding recommendations from completed
investigations.
(U/ As a result of Staff investigations, one employee
reimbursed the government $8,800 for embezzlement of funds after
the Department of Justice (DoJ) declined prosecution. Another
employee reimbursed $4,500 for receipt of duplicate funds for
academic training. In a third case involving civil service annuity
fraud investigated in conjunction with the Office of Personnel
Management (OPM) OIG, the government recovered $107,958. In a
fourth case, the government recovered $45,045 for unauthorized cell
phone calls. In two other cases, a contractor reimbursed the
government $11,217 for hours mischarged by an employee and an
independent contractor made reimbursement of $10,724 for
mischarged hours.
(U/ As the Staff's workload continues to expand, it
has hired three experienced Agency officers as investigators and has
issued conditional offers of employment to six other individuals with
Federal law enforcement experience. Staff recruitment remains a
priority. Advancing the information technology arena remains an
equally critical priority for the Staff, as it seeks to identify and deploy
software to manage its workflow and organize and search the
voluminous records received in investigations. Outreach efforts?in
the form of regularly scheduled lectures at CIA and Intelligence
Community courses and liaison with other Federal Assistant
Inspectors General for Investigation?continued to reap positive
benefits.
(U/ The Staff continues to oversee the Agency-wide
grievance system, which seeks to resolve grievances at the lowest
possible level in the organization. In addition to sponsoring a yearly
grievance counselor workshop for component and directorate
grievance officers, the Staff hosts quarterly meetings of grievance
officers to share issues of common interest, and it conducts
mandatory training for all new grievance officers. This training,
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together with the emphasis on resolution at the lowest possible level,
continues to contribute to effective and timely grievance resolution.
(LI) SIGNIFICANT COMPLETED INVESTIGATIONS
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(U) SPECIAL REVIEWS
(U Special reviews are undertaken by ad hoc teams
under the ea s ers ip of a senior OIG officer to address issues of
special concern identified by the Congress, senior CIA leaders, or the
Inspector General.
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING
FROM PREVIOUS SEMIANNUAL REPORTS
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""SEGREIZ.
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(U) STATISTICAL OVERVIEW
(U) Audit Staff
(U/ During the period 1 July to 31 December 2005, the
Audit Sta issue 1 reports and made 48 recommendations to
improve accounting and financial management, facilities
management, and general management.
(U) The Audit Staff had 18 audits and reviews ongoing at the
end of the reporting period.
(U) Inspection Staff
(U) During the last six months of 2005, the Inspection Staff
completed seven inspections. At the end of the reporting period, the
Staff also had five ongoing inspections. In addition, the Staff closed
five inspections.
(U) Investigations Staff
(U/ The Investigations Staff completed work on 139
matters of various s es during this reporting period. Of this
number, 21 cases were of sufficient significance to be the subject of a
final report-7 Reports of Investigation and 14 Disposition
Memoranda.
(U/ During this period, the IG formally referred 10
matters to I o ased upon a reasonable belief that violations of
Federal criminal law may have been committed.
(U/ Recoveries on behalf of the US Government
during this reporting period, as a result of the Investigations Staff's
efforts, totaled $188,343.
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(U) As of 31 December 2005, 153 matters were in various stages
of review by the Investigations Staff.
(U) Special Reviews
(U) During the period, the office closed two special reviews.
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(U) COMPLETED AUDITS
1 July -31 December 2005
(U) Financial Management
(U) Central Intelligence Agency Fiscal Year 2005 Financial
Statements
(U) Information Technology
(U) CIA Management of Laptop Computers
(U) Procurement
Facilities Support Project Management Practices at the
(U) Field Activities
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(U) COMPLETED INSPECTIONS
1 July ?31 December 2005
(U) Office of Asian Pacific, Latin American, and African Analysis
(U) CIA University
(U) Europe Division
(U) Research and Development in the CIA
(U) Leadership Analysis Follow-Up
(U) The DI's Senior Analytic Service
(U) Review of CIA's Pre-9/11 Reporting on the Relationship
Between Saddam's Regime and al-Qa'ida
(U) CURRENT INSPECTIONS
31 December 2005
(U) Agency Performance on North Korea
(U) CounterTerrorism Center
(U) Office of Near East and South Asian Analysis
(U) Information Management Services
(U) Agency Performance on Russia
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(U) COMPLETED INVESTIGATIONS
1 July ?31 December 2005
(U) Conversion of Government Funds
U Alle ed Contract Improprieties
(U) Potential False Claims - False Statements
(U) Fraudulent Reimbursement for Academic Training
U Possible Conflict of Interest
(U) Alleged Fraud Concerning Separate Maintenance Allowance
Alle? ed Conflict of Interest - Contract Improprieties
(U) Allegations of Time and Attendance (T&A) Abuse
* (U) These investigations resulted in a Disposition Memorandum rather than a Report of
Investigation.
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A enc Internet Personal Use for Adult Pornography
(U) Counterfeit Goods
(U//
Statements
Embezzlement of Government Funds and False
(U) Alleged Contract Improprieties
Alleged Abuse of Iraqi Prisoners
(U) Alleged Medical Leave Bank Abuse
U Potential False Claims and False Statements
(U) Theft of Government Funds
Misuse of a Government Intelligence Collection System
T&A Abuse by ontractor
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(U) CURRENT INVESTIGATIONS
As of 31 December 2005
Category Number of cases
Grievances
Assignment 2
Promotion 1
Other ? Grievance 5
Board Appeals 2
General Investigations
Criminal and Prohibited Acts
Conflicts of Interest 8
Embezzlement 4
False Claims ? Other 10
False Claims /Statements /Vouchers 8
False Claims - Time & Attendance 13
False Claims ? Visa/Passports 1
Firearms 3
Megaprojects 5
Misconduct ? Employee 6
Misconduct ? Management 6
Obstruction of Justice 2
Procurement Fraud 16
Theft/Misuse of Government Property 4
Waste 2
Other - Administrative/Criminal 38
Unsubstantiated Allegations 17
Total Ongoing Cases 153
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