oversight

Counternarcotics Assistance: U.S. Agencies Have Allotted Billions in Andean Countries, but DOD Should Improve Its Reporting of Results

Published by the Government Accountability Office on 2012-07-10.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

             United States Government Accountability Office

GAO          Report to the Subcommittee on the
             Western Hemisphere, Committee on
             Foreign Affairs, House of
             Representatives

July 2012
             COUNTERNARCOTICS
             ASSISTANCE

             U.S. Agencies Have
             Allotted Billions in
             Andean Countries, but
             DOD Should Improve
             Its Reporting of
             Results




GAO-12-824
                                               June 2012

                                               COUNTERNARCOTICS ASSISTANCE
                                               U.S. Agencies Have Allotted Billions in Andean
                                               Countries, but DOD Should Improve Its Reporting of
                                               Results
Highlights of GAO-12-824, a report to the
Subcommittee on the Western Hemisphere,
Committee on Foreign Affairs, House of
Representatives



Why GAO Did This Study                         What GAO Found
Hundreds of metric tons of cocaine             No single U.S. counternarcotics strategy exists for the Andean region. In each
flow annually from South America to            country—Bolivia, Colombia, Ecuador, Peru, and Venezuela—the U.S. embassy’s
the United States, threatening the             mission strategic resource plan, developed in consultation with the country’s
security and well-being of U.S. citizens.      government, guides counternarcotics assistance provided by U.S. agencies.
South American cocaine production              Department of State (State) officials told GAO that these plans incorporate high-
and trafficking is centered in the five        level guidance from the Office of National Drug Control Policy’s (ONDCP) annual
countries in the Andean region. State,         National Drug Control Strategy.
USAID, DOD, and DEA provide
counternarcotics assistance to stem            In fiscal years 2006 through 2011, estimated allotments for counternarcotics
production and trafficking of narcotics        assistance to the Andean countries by U.S. agencies—State, the U.S. Agency for
in these countries. ONDCP oversees             International Development (USAID), the Department of Defense (DOD), and the
and coordinates this assistance.               Drug Enforcement Administration (DEA)—totaled about $5.2 billion. Total
In this report, GAO (1) describes the          allotments declined for each country during this time period.
U.S. strategic approaches to counter-          Total Estimated U.S. Allotments for Counternarcotics Support in Andean Countries, Fiscal
narcotics assistance in the Andean             Years 2006-2011
countries; (2) identifies amounts
allotted for such assistance by State,
USAID, DOD, and DEA in fiscal years
2006 through 2011; and (3) reviews
the agencies’ reporting on their
performance. GAO reviewed agency
and U.S. strategy documents,
analyzed available agency data, and
interviewed agency officials.

What GAO Recommends
The Secretary of Defense should
ensure that DOD submits performance
summary reports to ONDCP including
the Inspector General’s attestation that
the reported information is reliable to
facilitate good management and
oversight. DOD concurred with this
recommendation.



                                               Note: Allotments do not sum to total because of rounding.
                                               State, USAID, and DEA reported meeting or exceeding most annual targets for
                                               key measures of their counternarcotics activities in the Andean countries since
                                               2007. For instance, State reported assisting in the eradication of illicit crops,
                                               USAID reported promoting alternative development, and DEA reported disrupting
                                               drug trafficking organizations. In addition, State, USAID, and DEA complied with
                                               an ONDCP requirement that each agency’s Inspector General (IG) attest to the
                                               reliability of annual performance summary reports before submitting the reports
View GAO-12-824. For more information,         to ONDCP. DOD reported tracking several performance measures, but DOD’s IG
contact Charles Michael Johnson Jr. at (202)   was unable to attest to the reliability of DOD’s reporting to ONDCP. As a result,
512-7331 or johnsoncm@gao.gov.                 ONDCP lacks assurance of the accuracy of information it receives from DOD and
                                               in turn reports to Congress.
                                                                                                United States Government Accountability Office
Contents


Letter                                                                                    1
               Background                                                                 3
               Mission Plans Describe Strategic Approaches for U.S.
                 Counternarcotics Assistance to Andean Countries                          7
               U.S. Agencies Allotted Billions to Andean Countries for
                 Counternarcotics Assistance in Fiscal Years 2006-2011                  10
               State, USAID, and DEA Reported Meeting or Exceeding Many
                 Targets, but DOD’s Reporting Has Been Unreliable                       15
               Conclusions                                                              20
               Recommendation for Executive Action                                      20
               Agency Comments and our Evaluation                                       21

Appendix I     Scope and Methodology                                                    22



Appendix II    Agency Allotments and Program Goals for Counternarcotics
               Assistance                                                               27



Appendix III   U.S. Counternarcotics Efforts in Andean Countries                        36



Appendix IV    Western Hemisphere Initiatives to Combat Narcotics Trafficking and
               Related Crimes                                                           40



Appendix V     Sources of Funding for U.S. Counternarcotics Assistance in the
               Andean Region                                                            41



Appendix VI    Comments from the U.S. Agency for International Development              42



Appendix VII   Comments from the Department of Defense                                  44




               Page i                                     GAO-12-824 Andean Counternarcotics
Appendix VIII   GAO Contact and Staff Acknowledgments                                      45



Figures
                Figure 1: Countries in the Andean Region                                     4
                Figure 2: Total Estimated Allotments for U.S. Counternarcotics
                         Assistance in Andean Countries, Fiscal Years 2006-2011            11
                Figure 3: Total Estimated Allotments for U.S. Counternarcotics
                         Assistance in Andean Countries, Fiscal Years 2006-2011            12
                Figure 4: Total Estimated Allotments for U.S. Counternarcotics
                         Assistance in Andean Countries, Fiscal Years 2006-2011            14
                Figure 5: Total Estimated Allotments for U.S. Counternarcotics
                         Assistance in Bolivia, Fiscal Years 2006-2011                     27
                Figure 6: Hectares of Illicit Crops Eradicated in Bolivia, Fiscal
                         Years 2006-2010                                                   28
                Figure 7: Hectares of Alternative Crops Cultivated in Bolivia, Fiscal
                         Years 2006-2010                                                   28
                Figure 8: Total Estimated Allotments for U.S. Counternarcotics
                         Assistance in Colombia, Fiscal Years 2006-2011                    29
                Figure 9: Hectares of Illicit Crops Eradicated in Colombia, Fiscal
                         Years 2006-2010                                                   30
                Figure 10: Hectares of Alternative Crops Cultivated in Colombia,
                         Fiscal Years 2006-2010                                            30
                Figure 11: Total Estimated Allotments for U.S. Counternarcotics
                         Assistance in Ecuador, Fiscal Years 2006-2011                     31
                Figure 12: Kilos of Narcotics Seized in Ecuador, Fiscal Years 2006-
                         2010                                                              32
                Figure 13: Hectares of Alternative Crops Cultivated in Ecuador,
                         Fiscal Years 2006-2010                                            32
                Figure 14: Total Estimated Allotments for U.S. Counternarcotics
                         Assistance in Peru, Fiscal Years 2006-2011                        33
                Figure 15: Hectares of Illicit Crops Eradicated in Peru, Fiscal Years
                         2006-2010                                                         34
                Figure 16: Hectares of Alternative Crops Cultivated in Peru, Fiscal
                         Years 2006-2010                                                   34
                Figure 17: Total Estimated Allotments for U.S. Counternarcotics
                         Assistance in Venezuela, Fiscal Years 2006-2011                   35
                Figure 18: Disrupted Priority Target Organizations (PTOs), Fiscal
                         Years 2006-2011                                                   39
                Figure 19: Dismantled Priority Target Organizations (PTOs), Fiscal
                         Years 2006-2011                                                   39



                Page ii                                      GAO-12-824 Andean Counternarcotics
Abbreviations
ACI             Andean Counterdrug Initiative
ACP             Andean Counterdrug Program
CARSI           Central American Security Regional Initiative
CBP             Customs and Border Protection
CBSI            Caribbean Basin Security Initiative
CNP             Colombian National Police
CSDI            Colombian Strategic Development Initiative
CTA             Central Transfer Account for Counternarcotics
DA              Development Assistance
DASD-CN&GT      Deputy Assistant Secretary of Defense for
                Counternarcotics and Global Threats
DEA             Drug Enforcement Administration
DHS             Department of Homeland Security
DOD             Department of Defense
DOJ             Department of Justice
ESF             Economic Support Fund
FACTS           Foreign Assistance Coordination and Tracking System
FARC            Revolutionary Armed Forces of Colombia
FBI             Federal Bureau of Investigation
FMF             Foreign Military Financing
ICE             Immigration and Customs Enforcement
ICITAP          International Criminal Investigative Training Assistance
                Program
IG              inspector general
IMET            International Military Education and Training
INCLE           International Narcotics Control and Law Enforcement
MSRP            mission strategic resource plan
NADR            Nonproliferation, Anti-terrorism, Demining and
                Related Programs
ONDCP           Office of National Drug Control Policy
PTO             priority target organization
SIU             Sensitive Investigative Unit
State/INL       State Department Bureau of International Narcotics
                and Law Enforcement Affairs
USAID           U.S. Agency for International Development
USCG            U.S. Coast Guard




Page iii                                 GAO-12-824 Andean Counternarcotics
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Page iv                                              GAO-12-824 Andean Counternarcotics
United States Government Accountability Office
Washington, DC 20548




                                   July 10, 2012

                                   The Honorable Connie Mack, IV
                                   Chairman
                                   The Honorable Eliot L. Engel
                                   Ranking Member
                                   Subcommittee on the Western Hemisphere
                                   Committee on Foreign Affairs
                                   House of Representatives

                                   The United States provides assistance to several countries in the Andean
                                   region of South America—Bolivia, Colombia, Ecuador, Peru, and
                                   Venezuela—to help curb the supply of illicit drugs, primarily cocaine,
                                   entering the United States. According to U.S. government estimates, most
                                   of the cocaine entering the United States is produced in Colombia, while
                                   Peru and Bolivia are also significant producers of coca, the plant used in
                                   cocaine production. Ecuador and Venezuela serve mainly as transit routes
                                   for criminal drug trafficking organizations transporting drugs into the United
                                   States and other parts of the world from neighboring countries.

                                   Several U.S. agencies—the Department of State (State), the U.S. Agency
                                   for International Development (USAID), the Department of Defense
                                   (DOD), and the Drug Enforcement Administration (DEA)—are primarily
                                   involved in planning and executing counternarcotics assistance in the
                                   Andean countries, in collaboration with authorities in each country.1 The
                                   agencies’ assistance supports, among other things, the disruption of
                                   cocaine processing and trafficking and coca cultivation and the promotion
                                   of alternative livelihoods for coca farmers. The Office of National Drug
                                   Control Policy (ONDCP) coordinates and oversees these efforts to reduce
                                   the availability or use of drugs in the United States and abroad and
                                   reports on these efforts to Congress.2




                                   1
                                    In this report, “counternarcotics assistance” refers to funds provided in support of
                                   interdiction, eradication, alternative development, and counternarcotics-related military
                                   and law enforcement training and equipment. See appendix I and appendix V for more
                                   information on funding sources included.
                                   2
                                    See Pub. L. 105-277, Div. C, Title VII, §704(b)(3), (14), 21 USC 1703(b)(3), (14).




                                   Page 1                                                GAO-12-824 Andean Counternarcotics
In response to your request concerning the impact of the production and
trafficking of illicit drugs from the Andean region on the United States, we
undertook a review of U.S. counternarcotics assistance in the region. This
report

(1) describes the U.S. strategic approaches to counternarcotics
    assistance in the five Andean countries;

(2) identifies amounts allotted for this assistance by State, USAID, DOD,
    and DEA in fiscal years 2006 through 2011; and

(3) reviews State, USAID, DOD, and DEA reporting on their
    performance of counternarcotics activities in the Andean countries.

To address these objectives, we reviewed U.S. strategy documents
related to counternarcotics assistance and analyzed State, USAID, DOD,
and DEA budget and financial data. We also reviewed available agency
performance data and related documentation, including annual ONDCP
reports. To help assess the reliability of the financial and performance
data we received, we incorporated questions about the reliability of the
agencies’ data and information systems, conducted internal reliability
checks, and followed up as necessary with agency staff. We determined
that the data used in our report were sufficiently reliable for our purpose
of presenting estimated allotments of funding for counternarcotics
assistance. We also interviewed relevant officials from each agency to
corroborate information provided in agency documentation and discuss
each agency’s management of counternarcotics assistance in the Andean
region. (See app. I for a more detailed description of our scope and
methodology.) We conducted this performance audit from April 2011 to
July 2012 in accordance with generally accepted government auditing
standards. Those standards require that we plan and perform the audit to
obtain sufficient, appropriate evidence to provide a reasonable basis for
our findings and conclusions based on our audit objectives. We believe
that the evidence obtained provides a reasonable basis for our findings
and conclusions based on our audit objectives.




Page 2                                      GAO-12-824 Andean Counternarcotics
             The five countries in the Andean region—Bolivia, Colombia, Ecuador,
Background   Peru, and Venezuela—represent primary sources of or transit routes for
             cocaine entering the United States.

                Bolivia. Bolivia is the world’s third largest producer of cocaine as well
                 as a transit zone for cocaine products from Peru, primarily to
                 neighboring countries in South America and to Europe. Although
                 cocaine production is illegal in Bolivia, coca farming is permitted in
                 some parts of the country.

                Colombia. Colombia, within 3 hours flying time from Florida,
                 produces 90 percent of the cocaine entering the United States and
                 much of the heroin in the eastern United States. Several terrorist
                 organizations in Colombia, which commit wide-scale violence and
                 human rights abuses, engage in drug trafficking as a source of
                 income.

                Ecuador. Ecuador is a major transit route for cocaine produced
                 primarily in neighboring Colombia and Peru. Since it uses the U.S.
                 dollar as its currency, Ecuador is also an attractive venue for money
                 laundering by individuals and organizations engaged in criminal
                 activities.

                Peru. Peru is the world’s second largest producer of cocaine.3 Drug
                 trafficking also generates a significant amount of money laundering in
                 Peru.

                Venezuela. Venezuela is one of the major drug transit countries in the
                 Western Hemisphere. Cocaine produced in Colombia is trafficked
                 through Venezuela; transported to locations in the Caribbean, Mexico,
                 or Central America; and then subsequently brought to the United
                 States and other locations.

             The map in figure 1 shows the locations of the five Andean countries.




             3
              According to ONDCP, as of 2010, Peru was the world’s largest producer of potentially
             pure cocaine.




             Page 3                                              GAO-12-824 Andean Counternarcotics
Figure 1: Countries in the Andean Region




Several U.S. departments and agencies are involved in planning and
executing counternarcotics assistance in the Andean countries.4



4
 State, USAID, DOD, and DEA provide funding for counternarcotics assistance in the
Andean region. Other agencies and programs—such as the Department of Homeland
Security’s Customs and Border Protection (CBP) and the Department of Justice’s
International Criminal Investigative Training Assistance Program—manage
counternarcotics-related training efforts in the region using funding transferred from State
or DOD. In addition, the Federal Bureau of Investigations (FBI) collaborates with DEA in
Colombia through an agreement known as Resolution 6, whereby FBI agents posted in
DEA’s office in Colombia jointly conduct investigations of multijurisdictional and
international drug-trafficking activities. Because the Resolution 6 program is primarily
intended to pursue evidence for domestic U.S. court cases, rather than to provide
counternarcotics assistance to Colombia, we have excluded this program from the scope
of our review.




Page 4                                                 GAO-12-824 Andean Counternarcotics
   State. State manages and funds eradication, interdiction, and law
    enforcement assistance, including programs implemented by a variety
    of other U.S. agencies. State also funds security assistance programs
    generally implemented by DOD, including Foreign Military Financing
    and International Military Education and Training programs, which are
    intended to strengthen the overall capacity of foreign forces to
    address security threats such as the narcotics trade. In addition to
    these activities, State provides limited funding to the Department of
    Homeland Security (DHS) to implement counternarcotics assistance
    in the Andean region. DHS components that implement this
    assistance include Customs and Border Protection (CBP),
    Immigration and Customs Enforcement (ICE), and the U.S. Coast
    Guard (USCG).5 State also provides funding for the Department of
    Justice’s (DOJ) International Criminal Investigative Training and
    Assistance Program (ICITAP), which supports prosecution of
    members of paramilitary groups in Colombia.

   USAID. USAID supports the U.S. counternarcotics effort through its
    rule-of-law and alternative development programs in several of the
    Andean countries.

   DOD. DOD, primarily through its Office of the Deputy Assistant
    Secretary of Defense for Counternarcotics and Global Threats
    (DASD-CN&GT), provides oversight and funds for counternarcotics
    activities in the Andean region.

   DEA. DEA works, primarily through its Sensitive Investigative Unit
    (SIU) program, to dismantle and disrupt drug trafficking organizations
    that are active in the Andean region. DEA maintains SIU programs in
    three of the five Andean countries.

For more information about each agency’s counternarcotics assistance in
the Andean countries, see appendixes II and III.




5
 According to DHS officials, CBP implements counterdrug port security programs in
Colombia, Peru and Ecuador. ICE provides financial investigation training in Bolivia,
Colombia, Ecuador, and Peru to disrupt the ability of transnational narcotics trafficking
organizations to operate effectively. USCG provides training to the Colombian Navy and
collaborates with Colombia, Ecuador and Peru for maritime drug interdiction operations.
DHS reported that its components also receive funding from DOD, the U.S. Treasury, and
the Organization of American States for counternarcotics activities in the region.




Page 5                                              GAO-12-824 Andean Counternarcotics
ONDCP produces the National Drug Control Strategy, which outlines the
administration’s initiatives to reduce illicit drug use, manufacturing and
trafficking, drug-related crime and violence, and drug-related health
consequences. ONDCP is also responsible for evaluating, coordinating,
and overseeing U.S. agencies’ counternarcotics activities. In December
2006, Congress directed ONDCP to produce an annual report describing
the national drug control performance measurement system and
identifying the efforts of agencies carrying out activities under the National
Drug Control Program. In May 2007, ONDCP issued guidance requiring
these agencies to submit annual performance summary reports to the
ONDCP Director.6 According to the guidance, these reports must
describe, among other things, performance measures used by the agency
to assess its counternarcotics activities; the prior year’s performance
targets and results; current fiscal year performance targets and
methodology used to establish those targets; and procedures used to
ensure that performance data are accurate, complete, and unbiased.
Prior to submitting these reports to ONDCP, agencies must provide the
reports to their Inspector General (IG) for attestation to the reliability of
each assertion made in the report.

As part of its counternarcotics efforts in the Western Hemisphere, the
United States has launched several regional initiatives outside the
Andean region—the Mérida Initiative, the Caribbean Basin Security
Initiative (CBSI), and the Central American Regional Security Initiative
(CARSI)—to combat rising drug-related crime in Mexico, the Caribbean,
and Central America. See appendix IV for additional information about
these regional initiatives.




6
 ONDCP, ONDCP Circular: Drug Control Accounting (Washington, D.C.: May 1, 2007).
Section 7 of the circular contains the requirements of a performance summary report.




Page 6                                             GAO-12-824 Andean Counternarcotics
                       Although no single comprehensive U.S. counternarcotics strategy exists
Mission Plans          for the Andean region, mission strategic resource plans (MSRPs) for each
Describe Strategic     of the countries in the region delineate the strategic approaches guiding
                       U.S. counternarcotics assistance. According to State officials, the MSRPs
Approaches for U.S.    incorporate high-level guidance from ONDCP’s annual National Drug
Counternarcotics       Control Strategy, which also includes specific policy guidance for the
Assistance to Andean   Western Hemisphere. This strategy presents a broad framework for
                       reducing illicit drug use and its harmful effects on the United States.
Countries              Included in the strategy is a chapter on international partnerships focused
                       on reducing the supply of illicit drugs in the United States via U.S.
                       cooperative efforts, such as those with Colombia and Peru, the CBSI
                       countries, and the CARSI countries, and initiatives to combat trafficking
                       through transit countries such as Ecuador.

                       The MSRPs for the Andean countries, developed by interagency teams at
                       U.S. embassies in consultation with host country governments,
                       summarize conditions in each country, specify U.S. foreign assistance
                       goals, and describe in general terms the assistance planned to further
                       those goals.7 Following are highlights of the strategic approaches
                       described in MSRPs developed for each of the Andean countries in fiscal
                       years 2007 through 2011.


Bolivia                The MSRPs for Bolivia address counternarcotics assistance as one of the
                       U.S. mission’s highest priorities. The MSRPs generally focus on
                       developing the government of Bolivia’s capacity to interdict cocaine and
                       precursor chemicals, supporting multilateral cooperation, assisting the
                       government of Bolivia with demand reduction policies, and supporting
                       alternative development programs. Similarly, as part of U.S. public
                       diplomacy efforts to support understanding of U.S. policies, the MSRPs
                       call for U.S. support of drug-awareness programs to communicate the
                       damage done to Bolivian society caused by excess coca production, drug
                       trafficking and consumption, and the benefits of alternative development.

                       The MSRPs reflect a difficult bilateral relationship between the United
                       States and Bolivia, which has adversely affected counternarcotics
                       operations in that country. Bilateral ties were greatly strained in 2008,


                       7
                        The MSRPs typically contain several elements: a Chief of Mission statement, a summary
                       of the last fiscal year’s performance results, goal papers describing each of the mission’s
                       strategic goals, and summaries of State operations and foreign assistance provided.




                       Page 7                                                GAO-12-824 Andean Counternarcotics
           when coca growers expelled USAID from the Chapare region in June,
           followed by the Bolivian president’s declaring the U.S. Ambassador
           persona non grata in September and expelling DEA in November of that
           year.8 Although U.S. counternarcotics assistance in Bolivia has continued,
           State officials report that resources for interdiction have declined in the
           years since DEA’s departure.


Colombia   The MSRPs for Colombia characterize counternarcotics efforts as the
           cornerstone of the U.S. bilateral relationship with that country. The U.S.
           counternarcotics strategy in Colombia has focused on aerial eradication,
           alternative development, interdiction, counterterrorism, and
           demobilization of combatants. The MSRPs report a successful
           partnership with Colombia over a number of years, with Colombian
           authorities increasingly assuming responsibility for funding and sustaining
           counternarcotics programs. The MSRPs also note that Colombia has
           emerged as a provider of counternarcotics assistance to other countries
           in the region.

           Beginning in 2009, the MSRPs reflect the launch of the Colombian
           Strategic Development Initiative (CSDI). CSDI supports the government
           of Colombia’s National Territorial Consolidation Plan that aims to expand
           state presence in four priority geographic zones previously dominated by
           illegal armed groups. Many municipalities in the target areas suffer from
           weak local institutions, lack of civilian authority, limited police capabilities,
           and an ineffective or absent justice system, which undermine the rule of
           law and perpetuate a vicious cycle of drug trafficking and violence. CSDI
           supports the government of Colombia’s efforts by providing economic
           opportunities once security and basic public services are established.
           Through CSDI, the U.S. strategy intends to support the transfer of
           security responsibilities from the Colombian military to the police. The
           U.S. strategy also seeks to sharply curtail illicit crop cultivation and
           cocaine production in priority conflict zones, thereby removing a vital
           source of funding for illegal armed groups.




           8
            Since the Ambassador’s expulsion from Bolivia, the embassy has been overseen by a
           Charge-d’Affaires.




           Page 8                                            GAO-12-824 Andean Counternarcotics
Ecuador   The MSRPs for Ecuador describe a strategic approach that, owing to
          Ecuador’s role as a transit country for illicit drugs, has focused on
          improving security along the northern border with Colombia and other key
          transport choke points. The MSRPs generally reflect U.S. support in the
          form of technical and advisory assistance, as well as equipment and
          training for the Ecuadorian military and police forces to improve detection
          and interdiction of drug trafficking. The MSRPs also note efforts to
          provide licit employment opportunities for populations in regions
          vulnerable to penetration by drug traffickers, as well as advocacy of
          tougher penalties for money laundering. Until 2009, a key element of the
          U.S. counternarcotics strategy for Ecuador and the Andean Region was
          the Forward Operating Location at the Ecuadorian Air Force base at
          Manta.9 This facility allowed detection, monitoring, and tracking of drug
          trafficking activities in the Eastern Pacific Ocean. According to agency
          officials, since 2009 U.S. monitoring of drug trafficking has been moved to
          other locations in the region. For example, detection and monitoring are
          now primarily focused on areas of arrival in Central America rather than
          areas of departure in South America.


Peru      The MSRPs for Peru note a number of factors affecting the strategy for
          counternarcotics assistance. Foremost among these factors is the cross-
          border nature of drug trafficking throughout the Andean region, where
          successes in Colombia, for example, increase pressures on Peru. In
          addition, these documents highlight the lack of a Peruvian government
          presence in the principal areas of the country where coca production and
          trafficking takes place, which has allowed narcotics traffickers to move in
          to fill the vacuum.

          Under the strategic goal of combating terrorism, the United States has
          supported the government of Peru’s efforts against domestic terrorists,
          who fund their operations and recruitment through drug production and
          trafficking. U.S. assistance also has targeted efforts to bring greater
          government control to border areas where Colombian terrorist
          organizations have obtained a foothold. The most recent MSRPs identify
          Mexican and Colombian drug cartels among the entities that benefit from
          drug trafficking in Peru. Funding support for the Peruvian government’s
          drug strategy is designated a priority. The Peruvian strategy focuses on



          9
          In July 2009, the lease for U.S. use of the Manta air base expired and was not renewed.




          Page 9                                             GAO-12-824 Andean Counternarcotics
                         preventing and reducing consumption, disrupting production and
                         trafficking, and promoting alternative development, including helping
                         farmers grow licit, rather than illicit, crops. According to the MSRPs, the
                         eradication program combined with sustained alternative development
                         supported by USAID over the last several years has reduced coca
                         cultivation to nearly insignificant levels in San Martin department, once
                         one of the key coca growing areas of the world, and replaced it with licit,
                         high-value crops such as cacao, coffee, and oil palm. The U.S. strategy
                         seeks to replicate that model in other areas of Peru and to encourage
                         Peruvian authorities to assume greater responsibility for sustaining
                         counternarcotics programs. The MSRPs also reflect concerns over the
                         role that efforts to combat drug trafficking play in stemming other illicit
                         activities, such as money laundering, illegal logging, and trafficking in
                         wildlife.


Venezuela                The MSRPs for Venezuela reflect continuing concern over increased
                         trafficking of cocaine from neighboring Colombia, which apparently has
                         led to rising cocaine consumption in Venezuela. The MSRPs note that the
                         U.S. counternarcotics strategy for that country is constrained by the
                         Venezuelan government’s antagonism toward the United States. The
                         U.S. strategy has therefore aimed primarily at reducing demand for
                         cocaine, primarily through cooperation with local and regional law
                         enforcement.


                         State, USAID, DOD, and DEA allotted a combined estimated total of
U.S. Agencies Allotted   nearly $5.2 billion in counternarcotics assistance to Andean countries in
Billions to Andean       fiscal years 2006-2011. Of this amount, about $366 million (7 percent)
                         was allotted for Bolivia; $3.92 billion (76 percent) for Colombia; $233
Countries for            million (5 percent) for Ecuador; $659 million (13 percent) for Peru; and $7
Counternarcotics         million (less than 1 percent) for Venezuela (see fig. 2).
Assistance in Fiscal
Years 2006-2011




                         Page 10                                      GAO-12-824 Andean Counternarcotics
Figure 2: Total Estimated Allotments for U.S. Counternarcotics Assistance in
Andean Countries, Fiscal Years 2006-2011




Note: Percentages do not sum to 100 because of rounding. Amounts have been rounded to the
nearest million. The primary funding sources used for counternarcotics support in Andean countries
include the following foreign assistance accounts: Andean Counterdrug Program (ACP);
Development Assistance (DA); Economic Support Fund (ESF); Foreign Military Financing (FMF);
International Military Education and Training (IMET); International Narcotics Control and Law
Enforcement (INCLE); and Nonproliferation, Anti-Terrorism, Demining and Related Programs
(NADR). According to State, the FMF, IMET, and NADR accounts contribute to counternarcotics
efforts, but are also used for broader activities. In addition, DOD receives an annual appropriation for
counternarcotics activities and uses some of these funds to support operations in the Andean region,
and; DOD also provided an allotment from the Section 1207 Assistance program. DEA supports its
Sensitive Investigative Unit program from its annual appropriation. See appendix V for details on
sources of funding included in our analysis.


Total estimated allotments for counternarcotics assistance programs in
the Andean countries declined overall by about 51 percent from fiscal
year 2006 to fiscal year 2011. Allotments for Bolivia declined by about
$103 million (87 percent); for Colombia, by $377 million (45 percent); for
Ecuador, by $32 million (59 percent); for Peru, by $87 million (52
percent); and for Venezuela, by $2 million (88 percent). In fiscal year
2008, allotments for counternarcotics assistance programs declined in all
Andean countries. (See fig. 3.)



Page 11                                                      GAO-12-824 Andean Counternarcotics
Figure 3: Total Estimated Allotments for U.S. Counternarcotics Assistance in
Andean Countries, Fiscal Years 2006-2011




Note: Amounts have been rounded to the nearest million and thus may not sum totals shown.
Amounts of less than $1 million were rounded to nearest 2 decimal places. The primary funding
sources used for counternarcotics support in Andean countries include the following foreign
assistance accounts: Andean Counterdrug Program (ACP); Development Assistance (DA); Economic
Support Fund (ESF); Foreign Military Financing (FMF); International Military Education and Training
(IMET); International Narcotics Control and Law Enforcement (INCLE); and Nonproliferation, Anti-
Terrorism, Demining and Related Programs (NADR). According to State, the FMF, IMET, and NADR
accounts contribute to counternarcotics efforts but are also used for broader activities. In addition,
DOD receives an annual appropriation for counternarcotics activities and uses some of these funds to
support operations in the Andean region; DOD also provided an allotment from the Section 1207
Assistance program. DEA supports its Sensitive Investigative Unit program from its annual
appropriation. See appendix V for details on sources of funding included in our analysis.




Page 12                                                     GAO-12-824 Andean Counternarcotics
Of the agencies’ combined estimated assistance in fiscal years 2006
through 2011, State provided about $3 billion (60 percent), USAID
provided $1 billion (21 percent), DOD provided $956 million (19 percent),
and DEA provided $25 million (less than 1 percent). As figure 4 shows,
each agency’s allotments decreased during this time period. State’s
allotments for counternarcotics assistance declined the most, dropping by
about 60 percent from fiscal year 2006 to fiscal year 2011. According to
agency officials, this decline in funding for counternarcotics assistance
could be attributed to factors such as the ongoing nationalization of U.S.
counternarcotics programs and assets in Colombia as well as a general
reduction in available resources across the federal government in recent
fiscal years.10




10
  “Nationalization” refers to the transfer of operations and funding responsibilities for U.S.-
supported programs to the host country governments.




Page 13                                                 GAO-12-824 Andean Counternarcotics
Figure 4: Total Estimated Allotments for U.S. Counternarcotics Assistance in
Andean Countries, Fiscal Years 2006-2011




Note: Amounts have been rounded to the nearest million and thus may not sum to totals shown. The
primary funding sources used for counternarcotics support in Andean countries include the following
foreign assistance accounts: Andean Counterdrug Program (ACP); Development Assistance (DA);
Economic Support Fund (ESF); Foreign Military Financing (FMF); International Military Education and
Training (IMET); International Narcotics Control and Law Enforcement (INCLE); and Nonproliferation,
Anti-Terrorism, Demining and Related Programs (NADR). According to State, the FMF, IMET, and
NADR accounts contribute to counternarcotics efforts, but are also used for broader activities. In
addition, DOD receives an annual appropriation for counternarcotics activities and uses some of
these funds to support operations in the Andean region; DOD also provided an allotment from the
Section 1207 Assistance program. DEA supports its Sensitive Investigative Unit program from its
annual appropriation. See appendix V for detail on sources of funding included in our analysis. DEA
amounts are not visible due to the scale of the chart.




Page 14                                                   GAO-12-824 Andean Counternarcotics
                            State, USAID, and DEA reported meeting or exceeding most of their
State, USAID, and           annual targets related to key counternarcotics performance measures in
DEA Reported                the Andean countries, and each complied with the ONDCP requirement
                            that each agency obtain its IG’s attestation to the reliability of the
Meeting or Exceeding        agency’s performance summary reports before submitting the reports to
Many Targets, but           ONDCP.11 DOD also reported tracking counternarcotics performance
DOD’s Reporting Has         measures, but we could not confirm the reliability of its performance data.
                            Moreover, DOD did not comply with ONDCP’s requirement that the IG
Been Unreliable             attest to the reliability of reported data.


State, USAID, and DEA       State, USAID, and DEA reported meeting or exceeding many
Reported Meeting or         performance targets related to key measures since 2007, when ONDCP
Exceeding Targets for Key   called for these targets to be set.12 Performance measures are important
                            in helping managers assess progress toward goals and promoting
Measures
                            accountability by communicating agency performance to Congress and
                            the public. In addition, in compliance with ONDCP’s 2007 requirement,
                            each agency submitted IG attestations to the reliability of the data
                            reported.

State Department            State reported meeting or exceeding more than half of its annual targets
                            for two key measures of its counternarcotics activities: (1) hectares of
                            illicit crops eradicated and (2) kilos of narcotics seized.13 State reported
                            meeting or exceeding a total of 16 of 28 annual targets related to these
                            measures. State reported assisting in the eradication of about 915,000
                            hectares of illicit crops in Bolivia, Colombia, and Peru in fiscal years 2006
                            through 2010, meeting or exceeding its annual targets in those countries
                            about half the time in the 4 years for which data are available.14 State also
                            reported assisting in the seizure of approximately 2,300,000 kilos of



                            11
                              ONDCP, ONDCP Circular: Drug Control Accounting (Washington, D.C.: 2007).
                            12
                              In fiscal year 2007, State’s Bureau of Foreign Affairs began reporting State’s and
                            USAID’s performance targets, and DEA began reporting its performance targets. Prior to
                            this year, the agencies reported results but not targets.
                            13
                              Although State has several counternarcotics performance measures, the two key
                            measures that State reports to the ONDCP for the Andean countries are hectares of coca
                            eradicated and kilos of narcotics seized.
                            14
                               State reported assisting the Bolivian government in eradicating 32,462 hectares of illicit
                            crops in 2006 through 2010. State’s results for fiscal year 2011 have not yet been
                            finalized.




                            Page 15                                                GAO-12-824 Andean Counternarcotics
        narcotics in Bolivia, Colombia, Ecuador, and Peru in fiscal years 2006
        through 2010, meeting or exceeding more than half of its annual
        interdiction targets in the four years for which data are available.15 State is
        currently revising its performance measurements. Officials told us that
        they are making efforts to develop more performance measures that do
        not focus on eradication, because eradication is not the sole factor
        influencing cultivation levels. State is also making efforts to develop
        metrics that demonstrate progress toward turning over control of
        counternarcotics programs to partner countries. (See app. II and app. III
        for further details of State’s counternarcotics efforts in each of the Andean
        countries.) State’s IG attested to the reliability of the department’s
        reporting of performance results for fiscal years 2007 through 2010, in
        accordance with ONDCP’s requirement.

        In January 2010, State’s Bureau of International Narcotics and Law
        Enforcement Affairs [State/INL] issued guidelines for program monitoring
        and evaluation. These guidelines were intended to help program
        managers determine whether projects are achieving their goals and
        adjust projects as necessary; plan effective programs; report program
        results to key stakeholders and oversight entities; justify resource
        requests; promote necessary changes in partner support, and contribute
        to constructive policy dialogue within the U.S. government and
        internationally. Departmentwide program evaluation guidance followed in
        November 2010, when State announced its first-ever evaluation policy for
        improving program management.

USAID   USAID reported generally exceeding annual targets related to two key
        measures for its counternarcotics efforts in the Andean countries: (1)
        hectares of land devoted to cultivating licit crops in areas receiving USAID
        assistance and (2) number of jobs created by alternative development
        projects each year.16 USAID reported exceeding a total of 26 of 32 annual
        targets related to these measures. According to USAID data, 804,314



        15
          In fiscal years 2006 and 2007, State reported assisting with the seizure of approximately
        550,000 kilos of narcotics in Bolivia but reported no interdiction assistance after fiscal year
        2008.
        16
          These two measures are the key performance measures that USAID reports to ONDCP
        for the Andean countries. USAID monitors a range of additional metrics that vary by
        country, such as sales of licit farm and non-farm products, number of families benefited by
        alternative development, and number of municipalities strengthened by U.S. government
        programs.




        Page 16                                                 GAO-12-824 Andean Counternarcotics
      hectares were devoted to alternative crops and 761,031 full-time jobs
      were created in Bolivia, Colombia, Ecuador, and Peru in fiscal years 2006
      through 2010.17 (See app. II and app. III for further details of USAID’s
      counternarcotics efforts in each of the Andean countries.) In accordance
      with ONDCP’s 2007 requirement, USAID’s IG attested to the reliability of
      the agency’s reporting of performance results for fiscal years 2007
      through 2010.

      USAID conducts evaluations of its counternarcotics and development
      programs in the Andean countries. These evaluations provide historical
      and regional context for USAID projects, detailed descriptions of program
      activities and results, findings, conclusions, recommendations, and
      lessons learned. Some of the achievements reported in these evaluations
      include the following:

          USAID’s alternative development program has met and surpassed
           annual targets for voluntary eradication of illicit crops in Peru.

          USAID contributed to Plan Colombia, which reduced opium poppy
           cultivation by 50 percent and improved security by suppressing
           illegally armed groups.

          USAID’s activities in Bolivia have contributed to improved poverty
           indicators, and hectares of principal alternative crops—such as
           bananas and citrus—have increased more than coca.

DEA   DEA reported generally exceeding regional targets related to two key
      performance measures for its international counternarcotics efforts:(1)
      number of drug trafficking organizations, or priority target organizations
      (PTO), disrupted and (2) number of PTOs dismantled.18 DEA reported



      17
        USAID reported supporting the cultivation of 39,834 hectares of alternative crops and
      the creation of 22,386 jobs in Bolivia in fiscal years 2006 through 2010. USAID’s results
      for fiscal year 2011 have not yet been finalized.
      18
        DEA defines PTOs as drug trafficking organizations with an identified hierarchy engaged
      in the highest levels of drug trafficking or drug money laundering operations, having a
      significant international, national, regional, or local impact upon drug availability. DEA
      defines disrupting as significantly interfering with the normal and effective operation of a
      targeted organization, as indicated by changes in, for example, organizational leadership,
      trafficking patterns, and drug production methods. DEA defines dismantling as destroying
      the organization’s leadership, financial base, and supply network such that the
      organization is incapable of operating or reconstructing itself.




      Page 17                                               GAO-12-824 Andean Counternarcotics
                            meeting or exceeding 8 of 10 annual targets related to these measures.
                            DEA reported disrupting 73 PTOs and dismantling 144 in Colombia,
                            Ecuador, Peru, and Venezuela in fiscal years 2006 through 2011,19
                            meeting or exceeding its regional targets for every year except 2007 and
                            2011.20 (See app. II and app. III for country-level details on the results of
                            DEA’s counternarcotics activities in Colombia, Ecuador, Peru, and
                            Venezuela.) DOJ’s IG attested to the reliability of DEA’s reporting of its
                            performance results for 2007 through 2010, in accordance with ONDCP’s
                            requirement.


DOD Reported Various        DOD reported a number of performance measures for its
Performance Measures,       counternarcotics efforts in the Andean countries in fiscal years 2007
but Its Reporting Has Not   through 2011, such as training and military support. However, we could
                            not confirm the reliability of the counternarcotics performance data DOD
Been Reliable               reported during these years. DOD is working to improve its
                            counternarcotics performance measurement system, but DOD officials
                            have reported challenges in measuring the performance of its
                            counternarcotics activities, such as difficulty in creating performance
                            measures that assess program outcomes, as well as dependence on host
                            nations and third parties for the collection and reporting of data related to
                            these results.

                            DOD’s efforts to develop counternarcotics performance measures are
                            long-standing. We reported in 1999 that DOD had taken initial steps to
                            develop better counternarcotics performance measures.21 In a
                            subsequent review, we found that DOD did not have an effective
                            performance measurement system to track the progress of its




                            19
                              According to DEA, although all formal counterdrug investigations between DEA and the
                            government of Venezuela were discontinued in 2005, the agency has continued to disrupt
                            and dismantle Venezuelan PTOs through efforts in other countries. DEA reported that no
                            data for its activities in Bolivia were available because its Bolivia offices were closed by
                            January 2009.
                            20
                              DEA measures its performance in each country but sets performance targets at the
                            regional level rather than the country level.
                            21
                             See GAO, Drug Control: Assets DOD Contributes to Reducing the Illegal Drug Supply
                            Have Declined, GAO/NSIAD-00-9 (Washington, D.C.: Dec. 21, 1999).




                            Page 18                                               GAO-12-824 Andean Counternarcotics
counternarcotics activities.22 ONDCP also reported holding, since 2006,
numerous consultations with DOD regarding the department’s
development of a performance measurement system for its
counternarcotics efforts. In 2010 we recommended that (1) DOD review
the department’s performance measures for counternarcotics activities
and revise the measures, as appropriate, to include the key attributes of
successful performance measures that we had previously identified and
(2) apply practices that we had identified to facilitate the use of
performance data.23 In response to these recommendations, DOD issued
standard operating procedures for the development and documentation of
counternarcotics performance metrics.24 This guidance outlines
procedures for selecting and evaluating counternarcotics performance
measures, setting performance targets, and assessing the reliability and
limitations of performance data with the purpose of using this information
to provide oversight and guide management decisions about the
allotment of counternarcotics resources. According to ONDCP, as a result
of this standard operating procedure, DOD revised its performance
measurement system in fiscal year 2011 to improve the system’s quality
and usefulness. According to DOD officials, the department is currently
developing its counternarcotics performance measures and plans to
transition to a web-based system for reporting its performance metrics by
fiscal year 2013.

DOD did not submit IG statements attesting to the reliability of the
department’s performance data as required by ONDCP. DOD IG cited a
number of reasons for not attesting to the reliability of DOD’s performance
data. For example, according to the IG, DOD’s performance reports for
fiscal years 2007 through 2009 did not meet ONDCP requirements that
the reports clearly describe the meaning and relevance of performance
measures and explain why any targets were not met. In addition,
according to information we obtained during a 2010 interview with the IG,
DOD’s 2008 performance report did not include 4 consecutive years of
data required for tracking improvements. Further, targets for several


22
  GAO, Drug Control: DOD Needs to Improve Its Performance Measurement System to
Better Manage and Oversee Its Counternarcotics Activities, GAO-10-835 (Washington,
D.C.: July 21, 2010).
23
 GAO-10-835.
24
 DOD, Counternarcotics and Global Threats Performance Metrics System Standard
Operating Procedures (Washington, D.C.: 2012).




Page 19                                          GAO-12-824 Andean Counternarcotics
                     performance measures in the 2008 report appeared to have been set
                     after the actual results for these measures were determined, therefore
                     throwing the reliability of all the data into question. DOD IG saw no
                     changes in DOD’s 2009 performance report and therefore decided not to
                     dedicate resources to conducting a review for the 2009 report. ONDCP
                     confirmed that DOD again failed to comply with the IG review requirement
                     in fiscal year 2010. In June 2012, DOD IG stated that it was unable to
                     attest to the reliability of DOD’s fiscal year 2011 performance report.


                     Given the strategic importance of reducing drug production and trafficking
Conclusions          in the Andean countries—the source of more than 95 percent of the
                     cocaine seized in the United States and much of the heroin available east
                     of the Mississippi River—accurate and reliable information on the results
                     of this assistance is essential. State, USAID, and DEA have reported the
                     required information, with attestations of its reliability, regarding the
                     combined $4 billion in assistance that they provided in fiscal years 2006
                     through 2011. However, lacking attestations by DOD’s IG, ONDCP has
                     minimal assurance of the reliability of DOD’s reporting on its estimated
                     $956 million in counternarcotics assistance in those years. Without
                     reliable information, ONDCP may be limited in its ability to carry out its
                     responsibility for coordinating and overseeing implementation of the
                     policies, goals, objectives, and priorities established by the national drug
                     control program and to report accurately to Congress on counternarcotics
                     assistance provided by agencies under ONDCP’s purview. Moreover,
                     without reliable information, Congress and other decision makers,
                     including ONDCP, may lack information that is essential to assessing
                     progress toward the U.S. goal of curtailing illicit drug consumption in
                     America, making decisions on the allocation of resources, and conducting
                     effective oversight.


                     To strengthen ONDCP’s ability to coordinate, oversee, and report to
Recommendation for   Congress on U.S. counternarcotics assistance in the Andean countries,
Executive Action     we recommend that the Secretary of Defense ensure that DOD complies
                     with the ONDCP requirement to submit to ONDCP performance summary
                     reports that are accompanied by IG attestations of the reliability of the
                     information reported.




                     Page 20                                     GAO-12-824 Andean Counternarcotics
                     We provided a draft of this report to State, USAID, DOD, DEA, and
Agency Comments      ONDCP. State, DOD, DEA, ONDCP, and DHS provided technical
and our Evaluation   comments, which we incorporated as appropriate. USAID and DOD also
                     provided written comments, which are reproduced in appendixes VI and
                     VII, respectively. In its written comments, DOD stated that it concurred
                     with our recommendation.


                     As discussed with your offices, unless you publicly announce the contents
                     of this report earlier, we plan no further distribution until 30 days from the
                     report date. At that time, we will send copies to the Secretary of State, the
                     USAID Administrator, the Secretary of Defense, the Attorney General,
                     and the Director of National Drug Control Policy. In addition, the report
                     will be available at no charge on the GAO website at http://www.gao.gov

                     If you or your staff members have any questions about this report, please
                     contact me at (202) 512-7331 or johnsoncm@gao.gov. Contact points for
                     our Offices of Public Affairs and Congressional Relations may be found
                     on the last page of this report. GAO staff who made key contributions to
                     this report are listed in appendix VIII.




                     Charles Michael Johnson, Jr.
                     Director
                     International Affairs and Trade




                     Page 21                                       GAO-12-824 Andean Counternarcotics
Appendix I: Scope and Methodology
             Appendix I: Scope and Methodology




             To identify U.S. agencies that provided counternarcotics assistance in the
             Andean region during fiscal years 2006 through 2011, we reviewed past
             GAO reports and relevant legislation. To identify counternarcotics
             assistance activities, we reviewed funding amounts reported to us by
             agencies, congressional budget submissions, agency annual reports, and
             other program documents. We also interviewed officials from the
             Department of State (State), the Department of Defense (DOD), the U.S.
             Agency for International Development (USAID), and the Drug
             Enforcement Administration (DEA).

             To describe the U.S. strategic approaches to counternarcotics assistance
             in the five Andean countries, we examined multiple U.S. government
             documents and interviewed U.S. government officials. Specifically, we
             obtained and analyzed State’s mission and bureau performance plans to
             understand U.S. foreign policy and security goals and priorities and the
             executive branch’s approach to formulating those goals. We also
             obtained State’s and USAID’s joint strategic 5-year plan, DOD’s
             Counternarcotics and Global Threats strategy, and DEA’s agency
             strategic plan. We interviewed officials from State, USAID, DOD, and
             DEA in Washington, D.C., who are responsible for administering and
             implementing the assistance programs to the five Andean countries. We
             reviewed department and agency planning, reporting, and budgeting
             documents and obtained and reviewed the various strategy documents
             produced by the United States that are the basis for overall drug control
             efforts, such as the Office of National Drug Control Policy’s (ONDCP)
             annual National Drug Control Strategy and the U.S. embassy’s mission
             strategic resource plans for fiscal years 2007 through 2011.

             We defined “counternarcotics assistance” as all funding provided primarily
             for the purpose of eradicating drug crop cultivation, interdicting trafficked
             narcotics, supporting alternative livelihoods and alternative crop
             cultivation, or training and equipping military and law enforcement for
             counternarcotics operations. In addition, we included small amounts of
             funding for assistance efforts in the region intended to support U.S.
             counternarcotics goals in the region, such as legal sector reform and drug
             demand reduction programs in Andean countries. The funding information
             presented in this report is based on allotment data. We used GAO’s
             definition of “allotment” as funds authorized by the head of an agency to
             be used for obligations. Each agency provided their funding amounts
             using internal, agency-specific budget terminology. This terminology
             varied among agencies; for example, some agencies referred to their
             funding amounts as ‘budget levels’ where other agencies referred to their
             funding amounts as ‘allocations.’ We discussed our definition of the term


             Page 22                                      GAO-12-824 Andean Counternarcotics
Appendix I: Scope and Methodology




“allotment” with cognizant officials at each agency. At each agency, those
officials stated that the funding amounts they provided could be
characterized using our definition of allotment and thus could be
presented in this report as funds available for obligation in support of
counternarcotics efforts in each of the Andean countries.

To identify the amounts of U.S. government funding allotted for
counternarcotics, we requested funding data for counternarcotics
assistance in the Andean region for fiscal years 2006 through 2011. We
also interviewed cognizant agency officials and examined past GAO
reports and congressional budget submissions, including State’s Bureau
of International Narcotics and Law Enforcement Affairs (State/INL)
program and budget guides for fiscal years 2006 through 2011. In
addition, we obtained technical comments from DHS to confirm that all
DHS counternarcotics efforts in the region are implemented using funds
from other U.S. agencies and international organizations. We collected
data for fiscal years 2006 through fiscal year 2011 to show trends in
counternarcotics assistance funding in the region. Each agency provided
funding data organized by country (Bolivia, Colombia, Ecuador, Peru, and
Venezuela) and by fiscal year (2006-2011). Based on our review of the
data and discussions with agency officials, we determined that the data
were sufficiently reliable for a broad estimate of U.S. government
counternarcotics program allotments the Andean region, and to provide
an indication of general trends over time as well as differences in funding
provided by country and agency.

The agencies took different steps and queried different systems to
provide the funding data we requested.

•   State. Officials from State’s Office of the Director of Foreign
    Assistance provided data from the Foreign Assistance Coordination
    and Tracking System (FACTS) database, which houses funding data
    on U.S. foreign assistance programs. 1 The FACTS funding data
    included amounts from fiscal year 2006 through 2011 from the
    following foreign assistance accounts: Andean Counterdrug Initiative
    (ACI); Foreign Military Financing (FMF); International Military
    Education and Training (IMET); International Narcotics Control and


1
 FACTS is used to collect foreign assistance planning and reporting data, including plans
for implementing current-year appropriated budgets and performance planning and
reporting data.




Page 23                                              GAO-12-824 Andean Counternarcotics
Appendix I: Scope and Methodology




    Law Enforcement (INCLE); and Nonproliferation, Anti-terrorism,
    Demining and Related Programs (NADR). We requested the funding
    amounts for these accounts after determining, through discussions
    with State officials, that these accounts were the most relevant to our
    scope. In addition, we requested specific amounts allotted for security
    sector reform and combating transnational crime in the region from
    the Development Assistance (DA) and Economic Support Fund (ESF)
    accounts. In addition, State’s Bureau of International Narcotics and
    Law Enforcement (INL) provided records on appropriations,
    allotments, obligations, expenditures, and other budget categories.
    We used these records to provide data on funding allotted for
    assistance in Ecuador through DOD’s Section 1207 Assistance
    program; we did not obtain any additional data on 1207 program
    funding in the region.

•   USAID. USAID’s Office of Latin America and the Caribbean consulted
    internal records and submitted a spreadsheet that combined (1)
    amounts of ACI assistance provided in fiscal years 2006 and 2007,
    which were not included in the State/F data and (2) data pulled by a
    query of the FACTS database to provide amounts allotted for
    counternarcotics assistance through the DA and ESF accounts for
    fiscal years 2008 through 2011.

•   DOD. DOD’s Deputy Assistant Secretary of Defense for
    Counternarcotics and Global Threats (DASD-CN&GT) provided a
    document with funding data from the CTA for Counternarcotics.
    DASD-CN&GT provides oversight of CTA funding through a Web-
    based database. DASD-CN&GT compiled funding data from this
    database— which tracks funds by project code— and then asked
    knowledgeable officials to provide estimated amounts of funds used in
    support of each Andean country.

•   DEA. DEA reviewed interagency agreement documents with State to
    obtain data on allotments for DEA’s SIU program. DEA provided a
    spreadsheet with detail from those agreements on funding provided in
    support of the program.

We combined the funding data provided by State, USAID, DOD, and DEA
to obtain total estimated U.S. government funds allotted. These amounts
are estimates because, according to agency officials, funding databases
may have imperfect or incomplete information, and some agencies relied
on manual estimates or manual review of agency documentation rather
than a central data management system to provide funding information.
Because State’s FACTS database was in the process of being created


Page 24                                     GAO-12-824 Andean Counternarcotics
Appendix I: Scope and Methodology




and launched in fiscal years 2006 and 2007, some data may be missing
for those years. In addition, State officials told us that although assistance
provided through the FMF and IMET accounts is often used for
counternarcotics purposes, the main intent of these accounts is to provide
assistance to partner nation militaries. Some of the FMF and IMET
assistance included in this report may not have provided direct support to
counternarcotics efforts of Andean countries. In addition, State/INL’s
records on the allotments for the 1207 program may not be complete,
because the program was originally managed by DOD; authority for the
1207 program expired on September 30, 2010. According to State,
because State does not maintain separate records for the uses of funds
in the ACI account, State was not able to provide complete data specific
to this account. According to USAID, USAID’s Office for Latin America
and the Caribbean relied on internal records that had been maintained by
the staff since 2006 to provide GAO with data on ACI funding amounts
allotted by USAID in each country for counternarcotics programs.
Similarly, DOD provided manual estimates of amounts by country,
because according to DOD, the department tracks CTA funding by project
code—which indicates the general purpose of the funding—rather than by
country. According to DOD, there is no standard procedure for estimating
these amounts by country. Unlike funding data provided by other
agencies, DEA amounts were obtained by a manual review of agency
documentation, not pulled by query from a data management system,
according to DEA officials.

To assess State, USAID, DOD, and DEA reporting on their performance
of counternarcotics activities in the Andean countries, we reviewed
agency planning and reporting documents related to counternarcotics
performance measures and targets. We also met with State, USAID,
DOD, and DOJ officials to identify the most significant performance
measures for their counternarcotics activities in the Andean countries. For
the focus of our review, we selected two key measures for each agency
that were identified by agency officials as significant indicators of the
results of their counternarcotics activities, included in the agencies’
annual performance reports to ONDCP, and consistently reported to
ONDCP over the past 5 years for all Andean countries. We assessed the
reliability of agency performance data for these key measures by
interviewing cognizant agency officials about the methods used to gather
and verify this data. We also reviewed related documents, such as
independent data quality assessments and statements from agency
Inspector Generals (IG) attesting to the reliability of agency performance
data. We found limitations with some of the performance data for these
key measures, including (1) lack of available State and USAID data in


Page 25                                       GAO-12-824 Andean Counternarcotics
Appendix I: Scope and Methodology




Venezuela, and of DEA data in Bolivia, due to limited U.S. presence in
these countries; (2) reliance on partner nations and third parties for
collection and reporting of certain performance data; and (3) lack of IG
authentication of DOD’s reported performance data. We used these data
to describe each agency’s counternarcotics performance measures and
the results related to these measures, as reported by the agencies, in
relation to their counternarcotics performance targets. With the exception
of DOD’s performance data, we determined that the performance data
provided by the agencies were sufficiently reliable for our purposes.

We conducted this performance audit from April 2011 through July 2012
in accordance with generally accepted government auditing standards.
Those standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our work objectives.




Page 26                                     GAO-12-824 Andean Counternarcotics
                                            Appendix II: Agency Allotments and Program
                                            Goals for Counternarcotics Assistance

                                            Bolivia
Bolivia:
                                            Figure 5: Total Estimated Allotments for U.S. Counternarcotics Assistance in
Counternarcotics Assistance                 Bolivia, Fiscal Years 2006-2011
Department of State (State)
In fiscal years 2006 through 2011,
State allotted about $237 million for
counternarcotics assistance in Bolivia,
despite the deterioration of diplomatic
relations (see fig. 5). This assistance
supported manual eradication efforts
and an aviation program. The
program’s aircraft are used to provide
transportation for manual eradication
teams and interdiction operations.
State also supports eradication and
interdiction in Bolivia through logistics
support to law enforcement.
Since fiscal year 2006, State has
reported assisting the Bolivian
government in eradicating 32,462
hectares of illicit crops (see fig. 6).
State began setting annual
eradication targets for Bolivia in 2007
but first met its target in 2010. State
reported assisting the government of
Bolivia in seizing 550,024 kilos of
narcotics in 2006 and 2007.
U.S. Agency for International
Development (USAID)
In fiscal years 2006 through 2011,
USAID allotted about $118 million for
alternative development assistance
to Bolivia (see fig. 5). Alternative
development assistance provides
opportunities for farmers to transition
from coca production to other viable
products. USAID provides support to
farmers who are vulnerable to
entering into the coca economy.
USAID also partners with Bolivian
government agencies to address
infrastructure needs.
Since fiscal year 2006, USAID has
reported supporting the cultivation of
39,834 hectares of alternative crops
in Bolivia, exceeding annual targets in
2007 and 2010 (see fig. 7). USAID
reported that its alternative
development activities created 22,386
jobs, exceeding USAID’s annual
targets every year except 2007.

                                            Page 27                                        GAO-12-824 Andean Counternarcotics
                                        Figure 6: Hectares of Illicit Crops Eradicated in Bolivia, Fiscal Years 2006-2010




Bolivia:
Counternarcotics Assistance
Department of Defense (DOD)
In fiscal years 2006 through 2011,
DOD allotted about $9 million for
counternarcotics-related security
assistance in Bolivia (see fig. 5).
Most funding has supported training
for individuals who are sent to
receive instruction at U.S. military
service schools. This has included
training in counterdrug operations
and equipment maintenance, as well      Figure 7: Hectares of Alternative Crops Cultivated in Bolivia, Fiscal Years 2006-
as officer professional development.    2010
Drug Enforcement
Administration (DEA)
In fiscal years 2006 through 2011,
DEA allotted about $2 million to
support the Sensitive Investigative
Unit (SIU) program in Bolivia, which
maintained a team of vetted
counterdrug investigative and
intelligence experts (see fig. 5). In
November 2008, the SIU program
ended and DEA staff were expelled
from the country on the order of
President Morales.
DEA performance data for Bolivia
are not available.




                                        Page 28                                            GAO-12-824 Andean Counternarcotics
                                         Colombia
                                         Appendix II: Agency Allotments and Program
                                         Goals for Counternarcotics Assistance

                                         Colombia
Colombia:
Counternarcotics Assistance              Figure 8: Total Estimated Allotments for U.S. Counternarcotics Assistance in
                                         Colombia, Fiscal Years 2006-2011
State
In fiscal years 2006 through 2011,
State allotted about $2.4 billion for
counternarcotics assistance in
Colombia (see fig. 8). This
assistance supported aerial and
manual coca eradication, including
aviation support. State maintains a
fleet of fixed-wing aircraft that are
used for aerial eradication. State
also maintains rotary-wing aircraft
that provide security for manual
eradication teams and support
interdiction missions. In addition,
State provides support to an elite
interdiction force within the
Colombian National Police (CNP)
and supports police in rural areas
Since fiscal year 2006, State has
reported assisting the government of
Colombia in eradicating 832,395
hectares of illicit crops and seizing
1,649,561 kilos of narcotics,
exceeding half of its annual
eradication targets and all of its
interdiction targets in Colombia since
2007 (see fig. 9).
USAID
In fiscal years 2006 through 2011,
USAID allotted about $718 million for
alternative development and local
government support programs (see
fig. 8). These programs were
intended to strengthen linkages
among governmental institutions,
markets, and local producers and to
strengthen the government’s
legitimacy in target areas (see map).
Since fiscal year 2006, USAID has
reported supporting the cultivation of
502,645 hectares of alternative crops
in formerly coca growing areas of
Colombia, exceeding its annual
targets every year except 2007 (see
fig. 10). USAID also reported that its
alternative development activities
created 584,803 jobs in Colombia,
exceeding annual targets every year
except 2007.
                                         Page 29                                          GAO-12-824 Andean Counternarcotics
                                         Each U.S. agency involved in CSDI has a designated area of
                                         responsibility. State focuses on eradication, USAID focuses on land
                                         reform and restitution, and DOD focuses on anti-insurgency support.
                                         DEA’s SIU program is not part of CSDI but provides training and
                                         equipment to a vetted unit within the Colombian National Police (CNP).
                                         State, USAID, DOD, and DEA coordinate counternarcotics efforts in
                                         country.
Colombia:                                Some counternarcotics programs and assets are being transferred to
Counternarcotics Assistance              Colombian control. For example, State’s Plan Colombia Helicopter
                                         Program, initiated in 2002, provides rotary-wing aircraft to develop
DOD                                      Colombian Army aviation. State officials estimated that the last aircraft
In fiscal years 2006 through 2011,       provided by the program would be transferred to the government of
DOD allotted about $752 million for      Colombia by the end of 2012. Similarly, State’s Colombian National
counternarcotics-related security        Police Aviation program has nationalized the cost of fuel to the CNP and
assistance in Colombia (see fig. 8).
                                         plans for the nationalization of rotary-wing aircraft in 2012. The CNP also
DOD has provided training and
equipment for the Regional
                                         plans to assume financial responsibility for the purchase, transport, and
Helicopter Training Center and pilot     mixing of glyphosate, the chemical used in aerial eradication, in 2011 and
training program in Melgar. DOD has      2012.
also provided rotary-wing aircraft
support to the Colombian Joint Task      Figure 9: Hectares of Illicit Crops Eradicated in Colombia, Fiscal Years 2006-2010
Force-Omega, which is the main
Colombian task force charged with
confronting the Revolutionary Armed
Forces of Colombia (known by its
Spanish acronym, FARC). DOD
counternarcotics funds have also
developed maritime interdiction
capacity through the purchase of
boats and construction of related
infrastructure in Santa Marta,
Cartagena and other locations.
DOD reported training helicopter
pilots and mechanics in Colombia
and supporting the government in
maintaining the operational
readiness of its air assault division.
DEA
In fiscal years 2006 through 2011,
DEA allotted about $15 million to        Figure 10: Hectares of Alternative Crops Cultivated in Colombia, Fiscal Years 2006-
support the Sensitive Investigative      2010
Unit (SIU) program in Colombia (see
fig. 8). The program maintains a
team of vetted counterdrug
investigative and intelligence experts
in the national police.
Since fiscal year 2006, DEA has
reported disrupting 31 priority target
organizations in Colombia and
dismantling 121.




                                         Page 30                                           GAO-12-824 Andean Counternarcotics
                                         Appendix II: Agency Allotments and Program
                                         Goals for Counternarcotics Assistance
                                         Ecuador
Ecuador:                                 Figure 11: Total Estimated Allotments for U.S. Counternarcotics Assistance in
Counternarcotics Assistance              Ecuador, Fiscal Years 2006-2011

State
In fiscal years 2006 through 2011,
State allotted about $64 million for
counternarcotics assistance (see fig.
11). This assistance focused on
improving the institutional
capabilities of Ecuador’s police and
military to combat narcotics
trafficking and money laundering. In
addition, State provided port security
assistance.
Since fiscal year 2006, State has
reported assisting the government of
Ecuador in seizing 45,897 kilos of
narcotics (see fig. 12). Actual
seizures exceeded State’s annual
target only in 2009.
USAID
In fiscal years 2006 through 2011,
USAID allotted about $45 million for
alternative development assistance
in Ecuador (see fig. 11). This
assistance, focused in part on
Ecuador’s border areas (see map),
has included water and sanitation
infrastructure improvements as well
as technical assistance, training, and
small grants to stimulate agricultural
investment.
Since fiscal year 2006, USAID has
reported supporting the cultivation of
81,682 hectares of alternative crops
in formerly coca growing areas of
Ecuador, exceeding its annual
targets for Ecuador every year since
2007 (see fig. 13). According to
USAID, alternative development
activities have created 55,304 jobs in
Ecuador, exceeding USAID’s annual
targets in 2007 through 2010, the
years for which data were available.




                                         Page 31                                         GAO-12-824 Andean Counternarcotics
                                         Figure 12: Kilos of Narcotics Seized in Ecuador, Fiscal Years 2006-2010




Ecuador:
Counternarcotics Assistance
DOD
In fiscal years 2006 through 2011,
DOD allotted about $121 million for
counternarcotics-related security
assistance in Ecuador (see fig. 11).
DOD has focused on providing
military training and equipment to
enhance interdiction capacity,
particularly along the northern border
with Colombia.
                                         Figure 13: Hectares of Alternative Crops Cultivated in Ecuador, Fiscal Years 2006-
DOD reported supporting Ecuador in       2010
maintaining the operational
readiness of its tactical vehicles and
river boats.
DEA
In fiscal years 2006 through 2011,
DEA allotted about $2 million to
support the Sensitive Investigative
Unit (SIU) program in Ecuador,
which maintains a team of vetted
counterdrug investigative and
intelligence experts in Ecuador (see
fig. 11).
Since 2006, DEA reported disrupting
15 priority target organizations in
Ecuador and dismantling 10.




                                         Page 32                                          GAO-12-824 Andean Counternarcotics
                                         Appendix II: Agency Allotments and Program
                                         Goals for Counternarcotics Assistance

                                         Peru
Peru:
                                         Figure 14: Total Estimated Allotments for U.S. Counternarcotics Assistance in
Counternarcotics Assistance              Peru, Fiscal Years 2006-2011
State
In fiscal years 2006 through 2011,
State allotted about $379 million for
counternarcotics assistance in Peru
(see fig. 14). This assistance
included coca eradication,
interdiction support. In addition,
State provided aviation support,
maintaining a fleet of State-owned
helicopters for interdiction and
eradication missions.
Since fiscal year 2006, State has
reported assisting in eradicating
50,387 hectares of illicit crops in
Peru, exceeding its annual
eradication targets in Peru in 2008
through 2010 (see fig. 15). Although
State assisted the government of
Peru in seizing 82,311 kilos of
narcotics since 2006, annual
narcotics seizures in Peru have
remained below State’s interdiction
targets every year since 2007.
USAID
In fiscal years 2006 through 2011,
USAID allotted about $203 million for
alternative development in Peru (see
fig. 14). USAID’s alternative
development program provides
assistance to help coca-producing
communities transition to cultivating
licit crops. Licit crops fostered by
USAID programs include cacao,
palm oil, and coffee.
Since fiscal year 2006, USAID has
reported supporting the cultivation of
180,153 hectares of alternative crops
in formerly coca growing areas of
Peru, exceeding its annual
alternative-development targets for
Peru in 2007, 2008, and 2010 (see
fig. 16). USAID also reported that its
alternative development activities
created 98,538 jobs in Peru,
exceeding its annual targets every
year, according to USAID.



                                         Page 33                                         GAO-12-824 Andean Counternarcotics
                                          Figure 15: Hectares of Illicit Crops Eradicated in Peru, Fiscal Years 2006-2010




Peru:
Counternarcotics Assistance
DOD
In fiscal years 2006 through 2011,
DOD allotted about $71 million for
counternarcotics-related security
assistance in Peru (see fig. 14).
DOD has supported maritime drug
interdiction efforts of the Peruvian
coast guard, and has provided
equipment and training to Peru’s
special forces to enhance their ability
to combat narcoterrorism along            Figure 16: Hectares of Alternative Crops Cultivated in Peru, Fiscal Years 2006-2010
rivers in illicit coca growing regions.
DEA
In fiscal years 2006 through 2011,
DOJ allotted about $6 million to
support DEA’s Sensitive
Investigative Unit program in Peru
(see fig. 14). DEA maintains a team
of vetted counterdrug investigative
and intelligence experts in the
Peruvian national police. During this
time period, DEA reported disrupting
19 priority target organizations in
Peru and dismantling 11.




                                          Page 34                                           GAO-12-824 Andean Counternarcotics
                                         Appendix II: Agency Allotments and Program
                                         Goals for Counternarcotics Assistance

                                         Venezuela
Venezuela:
                                         Figure 17: Total Estimated Allotments for U.S. Counternarcotics Assistance in
Counternarcotics Assistance              Venezuela, Fiscal Years 2006-2011
State
State allotted about $4 million for
counternarcotics and related security
assistance in Venezuela in fiscal
years 2006 through 2011 (see fig.
17). This assistance has provided
port security measures and law
enforcement training.
USAID
USAID did not provide
counternarcotics assistance to
Venezuela in fiscal years 2006
through 2011.
DOD
DOD allotted about $3 million for
counternarcotics and related security
assistance in Venezuela in fiscal
years 2006 through 2011 (see fig.
17). Through 2009, this assistance
was used in part to provide tactically
actionable intelligence to both US
and select Venezuelan law
enforcement agencies.
DEA
DEA did not maintain a Sensitive
Investigative Unit in Venezuela in
fiscal years 2006 through 2011.
However, during this time period, the
agency reported disrupting eight,
and dismantling two, Venezuelan
priority target organizations through
efforts in other countries.




                                         Page 35                                         GAO-12-824 Andean Counternarcotics
                                         Appendix III: U.S. Counternarcotics Efforts in
                                         Andean Countries
                                         Department of State

U.S. Counternarcotics                    Bolivia
Assistance Activities                    State supports manual eradication efforts in Bolivia by providing training
                                         and equipment to military and police and through aviation programs that
Funding allotted by State, USAID,
                                         provide aircraft with related training and maintenance to support
DOD, and DEA in the Andean
countries primarily supported,           transportation and logistics.1 State also makes aviation assets available
respectively, eradication and            for interdiction purposes, transporting manual eradication teams,
interdiction, alternative development,   supplies, and equipment to otherwise inaccessible regions of the country.
military assistance, and law             Colombia
enforcement capacity building in
Andean countries in fiscal years         State supports aerial and manual eradication in Colombia and provides
2006 through 2011.                       assistance to enhance the country’s interdiction capacity. State supports
                                         aerial eradication primarily by hiring a private U.S. contractor to aerially
State Department: Eradication
                                         spread herbicide over areas of coca cultivation. State supports manual
and Interdiction                         eradication, planned by the Colombian government, by providing
State leads drug crop eradication        protective equipment for manual eradicators. State has also provided
efforts in Bolivia, Colombia, and Peru   helicopters and related training and equipment to both the Colombian
and supports law enforcement in
                                         Army and the Colombian National Police to enhance the eradication and
each of these countries with training
and equipment to enhance drug            interdiction capabilities of those institutions.2
interdiction capacity. State’s primary   Ecuador
effort in Ecuador supports training
and equipment for Ecuador’s              Because Ecuador is a major transit route for narcotics passing from
counternarcotics police. State           Colombia and Peru to the United States, State’s counternarcotics
provided limited assistance In           assistance in Ecuador focuses on interdiction efforts and law enforcement
Venezuela in fiscal years 2006           training. State supports programs to improve the institutional capabilities of
through 2011. However, State has         Ecuador’s military, police, and judicial sectors to combat narcotics
used recently reprogrammed funds         trafficking, money laundering, and other transnational crimes.
for administrative costs associated
with closing its counternarcotics        Peru
programs in Venezuela.




                                         1
                                           Bolivia does not allow aerial eradication.
                                         2
                                           These State efforts include the Plan Colombia Helicopter Program and the Colombian
                                         National Police Aviation Program.
                                         3
                                           Peru does not allow aerial eradication.

                                         Page 36                                            GAO-12-824 Andean Counternarcotics
                                         Appendix III: U.S. Counternarcotics Efforts in
                                         Andean Countries
                                         U.S. Agency for International Development
U.S. Counternarcotics                    Bolivia
Assistance Activities                    USAID works with the government of Bolivia to diversify the economies of
                                         coca-growing regions, strengthen productive capacities, improve access to
The funding allotted by State,           essential social services, and improve rural road infrastructure. USAID’s
USAID, DOD, and DEA in the               alternative development program provides opportunities for farmers to
Andean countries primarily               transition from production of coca to other viable productive activities.
supported, respectively, eradication
and interdiction, alternative            Colombia
development, military assistance,        In Colombia, USAID’s primary focus is supporting the stabilization efforts of
and law enforcement capacity             the Colombian government to establish and reinforce the government’s
building in Andean countries in fiscal
                                         credibility and legitimacy in regions where illegal armed narcotics-trafficking
years 2006 through 2011.
                                         organizations are active. At the U.S. embassy in Bogotá, USAID leads CSDI,
USAID: Alternative                       which coordinates U.S. programs in Colombia to support the Colombian
Development                              government in establishing control over high-priority areas of the country that
USAID focuses on alternative             have been affected by drug-related conflict. This effort includes providing
development in Bolivia, Ecuador,         support to improve the management of Colombian institutions, such as the
and Peru and leads stabilization and     land-titling system.43
alternative development programs in
Colombia. Alternative development
                                         Ecuador
programs provide assistance to           In Ecuador, USAID’s counternarcotics effort includes a local business
individuals and communities to           development program to generate licit employment and increase income for
facilitate the transition away from      families along Ecuador’s northern and southern borders by supporting a
drug crop cultivation as a source of     market-driven expansion of private enterprises linked to rural producer
income. CSDI, the stabilization          groups and associations. Through local business development projects,
program in Colombia, supports the        USAID provides technical assistance, training, and small grants to stimulate
counternarcotics efforts of the          investment in agribusinesses that are linked to both small producers and
government of that country. USAID        larger markets.
reported that it did not provide
assistance in Venezuela in fiscal        Peru
years 2006 to 2011.                      USAID supports efforts to help communities to transition from growing coca
                                         to cultivating licit crops. According to USAID, approximately 1 to 3 months
                                         after eradication of illicit crops in an area, communities are offered the
                                         opportunity to sign agreements with the government of Peru, in which the
                                         communities commit to remaining coca free. USAID and DEVIDA, the
                                         Peruvian drug control agency, commit to support the coca-free communities
                                         with a package of assistance tailored to each community’s priorities and
                                         needs. This assistance includes planting new crops, increasing farmers’
                                         access to financial services, and strengthening producer associations and
                                         cooperatives to facilitate access to local and international markets.




                                         4
                                           USAID supports land titling as a way to consolidate government control over areas
                                         previously controlled by drug trafficking groups, enhance security, and promote
                                         investment.
                                         Page 37                                             GAO-12-824 Andean Counternarcotics
                                         Appendix III: U.S. Counternarcotics Efforts in
                                         Andean Countries
                                         Department of Defense
U.S. Counternarcotics                     Bolivia
Assistance Activities                     DOD reported providing minimal counternarcotics-related military
                                          support to members of the Bolivian armed forces since 2006. Generally,
The funding allotted by State,            this support has been provided as training for selected members of the
USAID, DOD, and DEA in the
Andean countries primarily
                                          armed forces who receive instruction at U.S. military service schools.
supported, respectively, eradication
and interdiction, alternative             Colombia
development, military assistance,         DOD counternarcotics funding in Colombia supports development of
and law enforcement capacity              military air, maritime, river-based, and ground capabilities. For example,
building in Andean countries in fiscal    DOD provides funding for the Regional Helicopter Training Center pilot
years 2006 through 2011.                  training program in Melgar, which has provided helicopter pilot training to
DOD: Military Support and                 counternarcotics forces throughout Latin America. DOD has also supported
Training                                  the helicopter capability of the Colombian Joint Task Force – Omega,
DOD leads counternarcotics-related        responsible for countering the FARC. Similarly, DOD has purchased and
military support and training             funded the maintenance infrastructure necessary for boats used in the
programs in all countries in the          Colombian military’s maritime interdiction operations.
region. DOD reported minimal
engagement with the armed forces          Ecuador
of Bolivia. In Colombia and Peru,         DOD counternarcotics funding supports the Ecuadorian military in their
DOD provides support to fight armed
                                          operations against transnational criminal organizations, principally in the
groups that engage in narcotics
                                          country’s northern border region with Colombia. DOD funding provides
production and trafficking in these
countries. In Ecuador, DOD works
                                          spare parts and tools to support a fleet of tactical vehicles used in
jointly with the military to counter      operations to destroy narcotics processing locations. DOD also provides
transnational criminal organizations      support for efforts to improve river-based patrol capabilities in the same
operating in the Ecuador-Colombia         northern border region.
border region. DOD reported minimal
engagement with the armed forces          Peru
of Venezuela.                             The U.S. Military Assistance Advisory Group focuses DOD
                                          counternarcotics support in the interior of Peru and along the northern
                                          coast. In the interior, DOD has provided communications and surveillance
                                          equipment to improve Peruvian forces’ ability to deploy for counternarcotics
                                          patrols. DOD’s assistance in these regions is intended to enhance the
                                          Peruvian military capacity to conduct operations against criminal and
                                          terrorist organizations in the region. Along the coast, DOD provides fuel,
                                          information sharing, training, and equipment to enhance detection and
                                          monitoring capabilities in Peru’s coastal areas.

                                          Venezuela
                                          DOD reported providing limited counternarcotics support to Venezuela
                                          since 2006. Until 2009, this support included a tactical analysis team that
                                          provided actionable intelligence to both U.S. and select Venezuelan law
                                          enforcement agencies. Since 2009, DOD resources in the area have been
                                          used primarily in support of U.S. law enforcement.




                                         Page 38                                        GAO-12-824 Andean Counternarcotics
                                         Appendix III: U.S. Counternarcotics Efforts in
                                         Andean Countries
                                         Drug Enforcement Administration
U.S. Counternarcotics                    Figures 18 and 19 show DEA’s targets for disrupting and dismantling priority
Assistance Activities                    target organizations (PTOs) as well as the actual numbers of PTOs
                                         disrupted and dismantled in the Andean region from fiscal year 2006 through
The funding allotted by State,           2011.
USAID, DOD, and DEA in the
Andean countries primarily               Figure 18: Disrupted Priority Target Organizations (PTOs), Fiscal Years 2006-2011
supported, respectively, eradication
and interdiction, alternative
development, military assistance,
and law enforcement capacity
building in Andean countries in fiscal
years 2006 through 2011.
DEA: Sensitive Investigative
Unit (SIU) Program
The SIU program, an international
drug enforcement initiative managed
by DEA, is currently active in three
countries of the Andean region—
Colombia, Ecuador, and Peru. SIU
members work with the relevant DEA
country office to disrupt and
dismantle drug-trafficking
organizations. DEA operated the SIU
program in Bolivia through 2008 but
ended the program after DEA was
expelled from the country by a
declaration of President Morales.
DEA has had no formal relationship
with Venezuela since 2005.
                                         Figure 19: Dismantled Priority Target Organizations (PTOs), Fiscal Years 2006-2011




                                         Page 39                                          GAO-12-824 Andean Counternarcotics
                                           Appendix IV: Western Hemisphere Initiatives
                                           to Combat Narcotics Trafficking and Related
                                           Crimes

Coordinator of Citizens                    State reported that since 2008, it has allocated more than $1.6 billion for
Security Initiatives in the                the Merida Initiative in law enforcement support for Mexico. The Merida
Western Hemisphere                         Initiative guides U.S.-Mexico collaboration against violent drug trafficking
State describes the Coordinator for        organizations. The initiative aims to increase Mexican counter-drug
Citizens Security Initiatives in the       capacity and to institutionalize the partnership focused on four goals or
Western Hemisphere as being                pillars: (1) disrupt organized criminal groups, (2) strengthen law
responsible for coordination of four       enforcement and judicial institutions, (3) advance global competitiveness
initiatives: the Merida Initiative, the    while providing for security along the U.S.-Mexico border, and (4) build
Caribbean Basin Security Initiative        strong and resilient communities.
(CBSI), the Central American
Security Initiative (CARSI), and the       CBSI is an initiative focused on citizen safety that brings all member
Colombian Strategic Development            countries of the Caribbean Community (CARICOM) and the Dominican
Initiative (CSDI).                         Republic together to collaborate on regional security with the United
According to State, the Coordinator
                                           States as a partner. To date, Congress has appropriated $203 million to
presides over a series of interagency      CBSI. CBSI aims to strengthen Caribbean partner nations’ capabilities,
executive committee meetings               including maritime security, law enforcement, information sharing, border
focused on counternarcotics efforts        and migration control, transnational crime, and criminal justice.
in the Hemisphere, including the four
                                           CARSI seeks to address the corrosive impact of narcotics and weapons
initiatives, as well as programs and
activities in the Andean countries         trafficking, gangs, and organized crime that exist in many Central
(see map.) The Coordinator has no          American countries. Congress has appropriated $491 million for CARSI
dedicated staff or budget. Although        to integrate U.S. security efforts from Guatemala to Panama. The pillars
the coordination meetings may result       of CARSI include (1) fostering streets free of violence and crime; (2)
in adjustments in the implementation       disrupting the movement of criminals and contraband; (3) supporting
of programs, they do not determine         strong and accountable governments willing to combat the drug threats
policy, which is the purview of the        with trained and resourced law enforcement; and (4) building state
National Security Council.                 presence in communities at risk.
The National Drug Control Strategy         Beginning in 2009, U.S. counternarcotics assistance to Colombia has
includes information on the
                                           focused on supporting the Colombian government’s National
coordination of the regional initiatives
as well as efforts in Colombia.            Consolidation Plan through CSDI. The plan represents the centerpiece of
                                           Colombian regional development and reform programs by responding to
                                           issues of rural poverty, violence, human rights, the needs of vulnerable
                                           groups, and the country’s internally displaced population. CSDI provides
                                           integrated support for civilian institution-building, rule of law, and
                                           alternative development programs coupled with security and
                                           counternarcotics efforts in Colombia. The initiative is intended to support
                                           the Colombian government’s goal of establishing and building state
                                           presence in areas contested by terrorist groups linked to narcotics
                                           trafficking, thereby integrating these priority regions into the country’s
                                           broader political, economic, social, and institutional fabric.




                                           Page 40                                      GAO-12-824 Andean Counternarcotics
                                        Appendix V: Sources of Funding for U.S.
                                        Counternarcotics Assistance in the Andean
                                        Region

Counternarcotics Assistance                                                                                                         Andean region
in the Andean Region                                                                                                                   allotments,
                                         Agency            Funding source                          Primary uses                      FY2006-2011
U.S. agencies use a variety of           State             Economic Support Fund                   Used for stabilization               $55 million
                                                           (ESF)                                   operations and security
funding sources to provide
                                                                                                   sector reform in Colombia
counternarcotics support to countries
in the Andean region.                                      Foreign Military Financing              Facilitates the acquisition of      $391 million
                                                           (FMF)                                   U.S. defense equipment by
State Department                                                                                   partner nations
State’s primary funding sources for                        International Military                  Provides professional                $14 million
counternarcotics assistance in the                         Education and Training                  training to partner nations’
                                                           (IMET)                                  militaries
Andean region include the ESF,
FMF, IMET, INCLE, and NADR                                 Andean Counterdrug                      Supports eradication,             $2,625 million
foreign assistance accounts. State                         Program (ACP)                           interdiction, and partner
                                                           International Narcotics                 nation law enforcement
also allotted about $600,000 from
                                                           Control and Law                         training
the DA account for counternarcotics                        Enforcement (INCLE)
assistance to combat transnational
                                                           Nonproliferation, Anti-                 Provides anti-terrorism              $30 million
crime in Ecuador in fiscal years 2009
                                                           terrorism, Demining, and                training to partner nation
and 2010.                                                  Related Programs (NADR)                 law enforcement
USAID                                    USAID             Andean Counterdrug                      Provide technical and             $1,085 million
                                                           Program (ACP)                           infrastructure assistance to
USAID’s primary funding sources for                                                                support cultivation of licit
counternarcotics assistance in the                         Development Assistance
                                                           (DA)                                    crops; also used for
Andean region included the DA,                                                                     strengthening government
ESF, and ACP accounts.                                     Economic Support Fund                   capacity in post-conflict
                                                           (ESF)                                   areas of Colombia
Department of Defense
                                         DOD               Central Transfer Account                Support training and                $956 million
DOD’s primary funding source for                           (CTA) for Counternarcotics              equipment for
counternarcotics assistance in the                         Section 1207 Assistance                 counternarcotics and
Andean region is the Central                                                                       security assistance
Transfer Account for                                                                               purposes
counternarcotics. DOD also allotted      DEA               Annual agency                           Supports equipment and               $25 million
funds for stability assistance in                          appropriation                           salary bonos for SIU
Ecuador in fiscal year 2010 through                        Sensitive Investigative Unit            members
the Section 1207 Assistance                                (SIU)
program.                                Source: GAO analysis of State, USAID, DOD, and DEA data.

Drug Enforcement                        Notes:
Administration                          Totals have been rounded to the nearest million.
                                        Licit crops supported in the Andean region include cacao, coffee, and oil palm.
DEA’s primary funding source for
counternarcotics assistance in the
Andean region is annual agency
appropriations used to support the
Sensitive Investigative Unit (SIU)
program.




                                        Page 41                                                             GAO-12-824 Andean Counternarcotics
Appendix VI: Comments from the U.S.
              Appendix VI: Comments from the U.S. Agency
              for International Development



Agency for International Development




              Page 42                                      GAO-12-824 Andean Counternarcotics
Appendix VI: Comments from the U.S. Agency
for International Development




Page 43                                      GAO-12-824 Andean Counternarcotics
Appendix VII: Comments from the
             Appendix VII: Comments from the Department
             of Defense



Department of Defense




             Page 44                                      GAO-12-824 Andean Counternarcotics
Appendix VIII: GAO Contact and Staff
                  Appendix VIII: GAO Contact and Staff
                  Acknowledgments



Acknowledgments

                  Charles Michael Johnson, Jr., (202) 512-7331 or johnsoncm@gao.gov
GAO Contact
                  In addition to the contact named above, key contributors to this report
Staff             were Juan Gobel (Assistant Director), Claude Adrien, Joshua Akery,
Acknowledgments   Martin de Alteriis, Bruce Kutnick, Reid Lowe, and Cristina Ruggiero.
                  Etana Finkler, Ernie Jackson, and Jena Sinkfield provided technical
                  support.




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                  Page 45                                     GAO-12-824 Andean Counternarcotics
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