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Report | May 30, 2017

DoD OIG Semiannual Report to the Congress | October 1, 2016 to March 31, 2017

The Semiannual Report to the Congress summarizing the work of the Department of Defense Office of Inspector General (DoD OIG) from October 1, 2016, through March 31, 2017, has been issued.

During this reporting period, the OIG issued 68 audit, inspection, and evaluation reports, including an Investigation on Allegations Related to U.S. Central Command (USCENTCOM) Intelligence Products.

We assembled a multi-disciplinary team of more than 30 DoD OIG employees to investigate allegations that senior officials at USCENTCOM falsified, distorted, delayed, or suppressed intelligence projects related to its effort to degrade and destroy the Islamic State of Iraq and the Levant (ISIL). This was one of the most extensive investigations in the DoD OIG’s history, resulting in a 542-page classified report. We also prepared a 190-page unclassified version of this report that we publicly released.

Our Audit Component issued 49 reports that identified $131 million in questioned costs and $802 million in funds put to better use. The DoD OIG also achieved $11.5 million in financial savings based on management-completed corrective actions related to reports issued in previous reporting periods.

Our Defense Criminal Investigative Service (DCIS) has 1,593 ongoing investigations and has opened 227 cases and closed 250 cases. DCIS investigations, conducted jointly with other law enforcement organizations, resulted in $557.7 million in civil judgments and settlements; $44.6 million in criminal fines, penalties, and restitution ordered; and $55.4 million in administrative recoveries, such as contractual agreements and military nonjudicial punishment. During the reporting period, DCIS and our law enforcement partners made 108 arrests, filed 140 criminal charges, and had 105 criminal convictions. Of particular note, an indictment was unsealed on March 14, 2017, in our Glenn Defense Marine Asia case (also known as the “Fat Leonard” case), charging a retired Navy rear admiral and eight other officers with accepting travel and entertainment expenses, the services of prostitutes, and lavish gifts from a contractor in exchange for helping to steer lucrative contracts.

In addition to the report on USCENTCOM, our Administrative Investigations (AI) Component issued two key reports of investigation of senior official misconduct. Overall, during the reporting period, AI completed 24 senior official and reprisal investigations and oversaw 231 senior official and reprisal investigations completed by the Services and Defense agencies OIGs.

We also issued several important evaluations during this reporting period. Our Intelligence and Special Program Assessments Component released five classified reports that evaluated intelligence, nuclear, and oversees contingency operations matters. Our Policy and Oversight Component released seven evaluation reports addressing its oversight of audit, investigative, and technical issues throughout the DoD, including a summary of health and safety inspections of DoD‑occupied facilities and military housing documenting a total of 3,783 deficiencies in electrical system safety, fire

protection systems, and environmental heath an safety. Our Special Plans and Operations Component issued three reports that evaluated the Warriors in Transition programs and initiatives; the effectiveness of the U.S. and Coalition efforts to train, advise, assist and equip the Kurdish Security Forces; and the DoD Voting Assistance Program.

In addition, the DoD OIG continues its important work as the Lead IG for two overseas contingency operations, Operation Inherent Resolve and Operation Freedom’s Sentinel in Afghanistan. This reporting period, I and two other IGs who have Lead IG responsibilities for oversight of these two overseas contingencies traveled together to Afghanistan, Iraq, and Jordan. We had an opportunity to talk to the commanders on the ground, the Ambassadors in country, and the chiefs of the U.S. Agency for International Development missions to better understand the progress and challenges involved with these two overseas contingency operations.