SEMIANNUAL REPORT

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 05500023
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 49
• Document Creation Date: March 8, 2023
• Document Release Date: January 7, 2019
• Case Number: F-2010-00143
• Publication Date: June 1, 2007

Approved for Release: 2018/12/17 005500023
IG 2007-0443
Central Intelligence Agency
Inspector General
SEMIANNUAL REPORT
TO THE DIRECTOR, CENTRAL INTELLIGENCE AGENCY
JANUARY - JUNE 2007
John L. Helgerson
Inspector General
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
2032063
(U) A Message From the
Inspector General
r37914 During this semiannual reporting period,
the Office of Inspector General (OIG) completed an audit of
the Terrorist Watchlisting Reviews of
_
Agency performance in the pre-9/11 period had highlighted
the failure to zvatchlist certain terrorists on a timely basis.
This audit assessed the effectiveness of improvements to the
watchlisting process in the intervening years.
(b)(1)
(b)(3)
(S//NT) The OIG completed one audit related to covert action activities in keeping (b)(1)
with the standing request of the Congress that OIG audit each covert action program no (b)(3)
less frequently than every three years.
managed by the National Clandestine Service
(NCS) Special Activities Division, undertaken at the request of the Senate Select
Committee on Intelligence (SSCI).
(b)(1)
(b)(3)
(b)(1)
(b)(3)
(S//NT) The Office also published audits of the Information Operations Network,
unused airline tickets, and the Imprest Fund Credit Card program. Five audits of field (b)(1)
activities were completed, Audit reports during this (b)(3)
1
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(WIT' OU ) The Inspection Staff published a comprehensive report on the
Agency' s foreign langua e capabilities.
(U//F U ) During this reporting period, the Inspection Staff also completed
reviews of two Agency-wide issues, two major Agency components, and a review of several
sensitive programs in a third.
(LII/TOU ) Investigations undertaken by the Office continued, in large measure,
to focus on fraud and corruption matters. Inquiries are underway involving cases of theft,
contract fraud, conflicts of interest, acceptance of gratuities, and conspiracy. One of these
investigations involves a former high-ranking official who, during the reporting period,
was indicted on 30 counts related to his handling of Agency contracts.
(LK OUO) A number of investigations involve embezzlement of funds by Agency
oj cers. In one case, the now-former employee pled guilty to theft of approximately
and awaits sentencing. A second case involves a lesser, yet substantial, amount
and is nearing resolution. Three other cases are in the early stages of investigation.
(U) OIG also continues to devote investigative resources to reviewing the
Agency s detention and interrogation activities associated with the conflicts in Iraq and
Afghanistan and the international war on terrorism. This work, in cooperation with the
Departments of Justice and Defense, as appropriate, is examining the circumstances
surrounding the movement, confinement, and, in some cases, alleged abuse of detainees.
2
SECRET//NOFORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET//NOFORN//20320630
Most recently, DIG has been asked to review the facts and circumstances surrounding
allegations of abuse by a number of high value detainees who are confined at Guantanamo
Bay, Cuba.
(S1/NT) Developments continued related to three cases in which detainees died. In
the case where a detainee died while being interrogated by Agency personnel at Abu
Ghurayb prison in Iraq, the Associate Deputy Director accepted the recommendations of
an Agency Accountability Board!
\In a second case, OIG completed an
investigation of events relevant to the Agency surrounding the death of a former Iraqi
Major General while in custody of the US military in Iraq. The investigation found that
CIA personnel were not involved in the specific actions that directly caused the General s
death,
\ In a third matter, a
former Agency contractor was tried in the Eastern District of North Carolina and found
guilty on four counts of assault of a detainee, who had died as a result of his injuries. In
February 2007, the contractor was sentenced to 100 months imprisonment.
(U) In conducting its audits, inspections, and investigations, OIG collects very
large amounts of data. The storage, retrieval, and analysis of that information is becoming
increasingly difficult. The efficiency and effectiveness of the work force would be greatly
enhanced by updated information technology systems. During the past year, OIG
implemented several relatively inexpensive automated tools to assist with the management
of data, including a and
search tools. We will continue our efforts to identify and evaluate applications for future
use and seek solutions for managing the volumes of data collected in our work. In its mark
on the FY-08 Authorization Bill, the SSCI expressed support for this initiative and
recommended additional resources that would greatly facilitate these efforts.
(U) OIG officers continued the Office' s outreach efforts in a variety of forms.
Audit Staff personnel played a significant role in planning and implementing the annual
IC Inspectors General Conference in May, which this year was hosted by the DNI/IG. In
February, seven inspectors from the Inspection Staffs of the OIGs of the National Security
Agency, the National Geospatial-Intelligence Agency, the Defense Intelligence Agency, the
ODNI, and the Department of State participated in OIG' s New Inspector Training
Course. The IG in June addressed the International Symposium on the Accountability of
Intelligence and Security Agencies and Human Rights, held in The Hague and sponsored
by the Dutch Review Committee on the Intelligence and Security Services.
John L. Helgerson
13 July 2007
3
OFeR
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(U) STATUTORY REQUIREMENTS
(U) This report is submitted pursuant to section 17 of the CIA Act of 1949,
as amended, which requires the Inspector General to provide to the Director,
Central Intelligence Agency (D/ CIA), not later than 31 January and 31 July of
each year, a semiannual report summarizing the activities of the OIG for the
immediately preceding six-month periods, ending 31 December and 30 June,
respectively.
(U) All audit activities of the OIG are carried out in accordance with
generally accepted government auditing standards. All OIG inspection and
investigation activities conform to standards promulgated by the President's
Council on Integrity and Efficiency.
(U) The OIG has had full and direct access to all Agency information
relevant to the performance of its duties.
(U) Subpoena Authority
(U/ /FOUO) During this reporting period, the IG did not issue any
subpoenas.
(U) Legislative Proposals
(U) OIG has no proposals for legislative changes.
4
SECRET/ / NOTORN/ / 20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET//NeFefett2133.206311-
(U) AUDITS
(U) AUDIT STAFF OVERVIEW
(U/ ) The Audit Staff conducts performance and financial audits
of CIA programs and activities. During this period, the Audit Staff completed 10
audits that addressed program management, covert action, financial
management, information technology, and field station administration.
(S//NP) The Audit Staff continues to pursue its program, as requested by
the Congress, to audit each covert action program (or an aspect of each program)
at least every third year and to provide the results of each audit to the Congress.
This reporting period, the Staff completed a covert action audit involving the
CIA's Special Activities Division (SAD). Other completed audits include the
Terrorist Watchlisting the Information Operations Network
(ION), and the Imprest Fund Credit Card Program. The Audit Staff completed
five audits of field station activities,
(U) This reporting period, Audit Staff members served on the committee
responsible for arranging the Intelligence Community Inspectors General
Conference. The conference, which traditionally has been hosted by the CIA
Office of Inspector General, was held on 10 May 2007 and was hosted by the
Office of the Director of National Intelligence (ODNI) CHG. CIA Audit Staff
members were recognized by the ODNI IG for their significant contributions to
the success of the conference.
(U) COMPLETED AUDITS
Imprest Fund Credit Card Program (2005-0031-AS, March 2007):
Imprest fund credit cards are CIA-sponsored credit and/or charge cards issued
to individual employees to pay for goods and nonpersonal services in lieu of
dispensing cash from imprest funds. Imprest fund credit cards enhance
purchasers' efficiency by enabling them to acquire goods and nonpersonal
services via the telephone or the Internet.
(U) In August 2005, the Office of Management and Budget (OMB) revised
OMB Circular No. A-123, Management's Responsibility for Internal Control, to
include Appendix B, Improving the Management of Government Charge Card
Programs, which establishes standard requirements and practices for improving
the management of government charge card programs. The provisions of this
guidance apply to all Executive Branch departments and agencies.
5
SECRET/ / NOFORN/ / 20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOFORN//20320630
(UHFOU0) Imprest fund credit card purchases made by CIA personnel
generally comply with procurement laws and regulations and cardholders
generally comply with usage guidelines. The audit found no instances of
cardholder fraud or misuse.
(UHECA:Ter) Nevertheless, the report identifies some weaknesses in the
administration and program management of the CIA's Imprest Fund Credit
Card program. Specifically, the CIA has not developed and implemented a
credit card management plan as called for in OMB Circular No. A-123, Appendix
B. In addition, many cardholders do not account for purchases in a timely
manner; risk assessment tools are not obtained from participating banks and
used; accountings for purchase transactions do not always contain sufficient
documentation to comply with Agency regulations; and the
does not contain
accurate cardholder information.
A recommendation that the Chief,
Finance clarify in existing policy that imprest fund credit card cardholders are to
use electronic vouchering to the maximum extent practicable and instruct
approving and certifying officers to monitor compliance with this policy has
been closed as a result of action taken to satisfy the recommendation./
6
SECRET/ NOFORNH 20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET/ / NOPORN/ / 20320630
-(Sj The Agency's Process for Obtaining Refunds or Credits for Unused
Airline Tickets (2005-0030-AS, April 2007): The CIA does not have processes in
place to ensure that refunds are obtained for all unused airline tickets charged to
the centrally billed accounts that are administered by the CIA's central travel
office. In FY 2003 and FY 2004, the CIA may have paid as much as
for airline tickets that were not used and were not refunded.
IS) Centrally billed credit card accounts used by CTS to pay for airline
tickets were not properly reconciled, resulting in a discrepancy of over
between the credit card vendor and CTS records. In addition, CTS did not have
procedures in place to dispute unrecognized charges on the centrally billed
credit card accounts.
(uHrouo) The CIA did not adhere to the provisions of the Prompt Pay
Act in paying credit card bills associated with the purchase of airline tickets.
Because the invoices for the centrally billed credit cards were not properly
processed in the CIA's accounting system, which incorporates Prompt Pay
procedures, the CIA did not pay Prompt Pay interest, even though monthly
payments were sometimes late.
(U/ ) Obligations established for airline tickets for which refunds
are received were not being deobligated in a timely manner.
(b)(3)
(b)(5)
(b)(3)
(b)(5)
7
5ECRETHNOITORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
-5teltET-ty-NefiSofeihi-2932436200�
(b)(3)
(2005-0032-AS, April 2007):
8
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET//NOFORN//20320630
(S/ /Nr) Terist Watchlistin 2000016.1ile 2007
9
5ECRETHNOFORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(b)(1)
(b)(3)
(b)(5)
ttLehifi Information Operations Network (2006-0001-AS, June 2007):
(b)(1)
(b)(3)
(b)(5)
10
�igErgI4E-T-1-74449F491032e6-J0-
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(b)(1)
(b)(3)
(b)(5)
(G// NF) Field Station Audits (January - June 2007): The Audit Staff
issued final reports for five field station audits:
The results of the audits and areas that needed
improvement were discussed with Chiefs of Stations, who took steps to address
the OIG's findings. Issues that were addressed included:
There
were no significant recommendations.
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING FROM
PREVIOUS SEMIANNUAL REPORTS
(tLi-141-F) Personal Defense Firearms Training (2004-0009-AS, April
2005):
11
ECRET//NOTORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SELRET//NOF
Intelligence Community Inspectors General Forum Review of
the National HUMINT Requirements Tasking Center (NHRTC) (2003-0017-AS,
June 2005):
June 2005):
(2004-0001-AS,
* (U) When a significant recommendation remains unsatisfied for five consecutive semiannual
reports, the fifth report contains a statement setting forth the IC's view of the impact of the
recommendation remaining unsatisfied. OIG then ceases efforts to track its implementation.
12
-SteRE-T-1' /lieFeRi+H-20-320630-
(b)(1)
(b)(3)
(b)(1)
(b)(3)
(b)(1)
(b)(3)
(b)(5)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(uhirouo) 2004 Independent Evaluation of the Central Intelligence
Agency Information Security Program and Practices Required by the Federal
Information Security Management Act (FISMA) (2004-0017-AS, June 2005):
One significant recommendation remained open at the beginning of the period.
It requested that CIA officials develop and maintain an inventory of information
systems for which the CIA has accreditation authority and denote which of these
systems are considered major information systems requiring annual testing. CIA
officials have developed an inventory of information systems, identifying those
systems considered to be major. Also, a FISMA working group meets monthly
and considers new systems to be added to the inventory of information systems
and the CIA's FISMA reporting to OMB. The recommendation and the audit are
closed.
(u/irouo) CIA Management of Laptop Computers (2004-0020-AS,
(b)(3)
December 2005):
(2004-0022-AS, April 2006):
13
-3EeRE-T-f-7449F49144{-7L242J.204344-
(b)(3)
(b)(5)
(b)(3)
(b)(5)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(b)(3)
2005 Independent Evaluation of the Central Intelligence Agency
Information Security Program and Practices Required by the Federal
Information Security Management Act (FISMA) (2005-0003-AS, April 2006):
One significant recommendation remained open at the beginning of this
reporting period. It called for the Chief Information Officer (CIO) to inform, in
writing, the responsible Principal AccreditinOuthority (PAA) of all non-CIA
systems that are interconnected to any of the HCIA systems waived from DCID
6/3 certification testing. The CIO has completed a review of all waived systems
The CIO has informed, in writing, the PAA
that certification testing was waived. The audit
is closed.
-(S7L744Fi-
(2005-0011-AS, May 2006):
(b)(1)
(b)(3)
14
SECRETHNOPORN//20320G30
(b)(1)
(b)(3)
(b)(5)
(b)(3)
(b)(3)
(b)(3)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET//NOFORN//20320630
(S//NFli
(2005-0017-AS, June 2006):
(G// NF) The Corporate Information Retrieval and Storage (CIRAS)
System (2005-0018-AS, September 2006):
S//NF
(2005-0029-AS, December 2006):
15
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
GLCRET/ /-NeFORNI-f211320643t
(b)
(b)
(b)
(S//NF) Information Security Practices in the Field (2005-0014-AS,
December 2006):
(U// Independent Audits of the Financial Statements of the
CIA (2003-0022-AS, 2005-0001-AS, and 2005-0033-AS):
16
SECRET! / NOFORN/ / 20320630
1)
3)
5)
(b)(1)
(b)(3)
(b)(5)
(b)(3)
(b)(5)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
btk...RET NO RN /2032063
(b)(3)
(b)(5)
(U) SUMMARIES OF SELECTED CURRENT AUDITS
Construction and Renovation Project
Management (2006-0021-AS): The objective of the audit is to determine whether
Facilities Support provides effective project management of (b)(1 )
construction and renovation projects. (b)(3)
(UHFOU0) CIA's Operational Use of Biometric Technology
(2007-0003-AS): The objectives of the audit are to determine whether the CIA's
use of biometric technology provides sufficient data collection, data
dissemination, and countermeasure capabilities to address CIA mission
requirements and whether the technology is used in compliance with applicable
laws and regulations.
(U//FOU0) Joint Audit of the Use of CIA Special Authorities in
Support of the National Geospatial-Intelligence Agency (2007-0011-AS): The
CIA and the National Geospatial-Intelligence Agency (NGA) Offices of Inspector
General have scheduled a joint audit of the use of CIA special authorities in
support of the NGA. The audit objective is to evaluate the effectiveness of the
policies, procedures, and controls over the use of CIA contracting authorities by
the NGA National Cell.
(S//NF)
(2006-0026-AS): The primary objectives of the audit are to determine whether
program activities are effective in meeting policy objectives, resources allocated
to the program are properly managed and used for authorized purposes, and
program activities are administered in compliance with applicable CIA
regulations and US laws.
(b)(1)
(b)(3)
17
SEChET// //
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(U) INSPECTIONS
(U) INSPECTION STAFF OVERVIEW
(U//TOU0) The Inspection Staff is responsible for conducting
inspections of CIA programs and operations to evaluate their efficiency and
effectiveness and their compliance with law, Executive orders, and regulations.
(U//FOU0) During the current reporting period, the Staff completed
inspections of the Counterintelligence Center (CIC) in the National Clandestine
Service (NCS)
the Office of the Associate Director for Military Affairs (ADMA) in
the Director's Area, Agency Language
Capabilities, and Human
Resources (HR). In addition, the Staff commenced inspections of the Near East
and South Asia Division in the NCS, the Office of Russian and European
Analysis in the Directorate of Intelligence (DI), Applications Services in the
Office of the Chief Information Officer (CIO), the Agency's Performance on
, and Training of New DI and NCS Officers, as well as a
follow-up inspection on Agency Targeting.
(U// ) The Inspection Staff continues to conduct a two-week course
for new inspectors and a seminar for team leaders before the start of each
inspection cycle. The Staff also provides instructional seminars for OIG
inspectors and research assistants during the course of each cycle.
(U//FOU0) In addition, the Staff closed five inspections�the Agency's
Performance on North Korea, the Leadership Analysis Follow-Up,
Retention in the Agency, and the Directorate of Science and Technology's
(DS&T's) Technical Support to the Directorate of Operations. In the case of the
first three, the relevant stakeholders have satisfied the remaining
recommendations.
* (U) When a significant recommendation remains unsatisfied for five consecutive semiannual
reports, the fifth report contains a statement setting forth the IG's view of the impact of the
recommendation remaining unsatisfied. OIG then ceases efforts to track its implementation.
18
.',ECRET/ / NOFORN/ / 20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOFORN//20320630
(U) COMPLETED INSPECTIONS
(5-/.15f)
(2006-0002-IN February 20071.
(b)(1)
(b)(3)
19
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOTORN//20320G30
.(S/-/-fIFT CIA Counterintelligence Center (2006-0004-IN, March 2007):
20
SECRET/&FORN//249328630
(b)(3)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOFORN//20320630
(b)(1)
(b)(3)
(b)(5)
21
/ //
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOFORN//20320630
22
SECRET//NOFORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOF RN//20320630
(t1"75'FG44) Office of the Associate Director for Military Affairs (2006-
0010-IN, April 2007): The D/CIA sought to improve CIA support to the military
in late 2006 by consolidating the former Office of Military Affairs (OMA) and the
Office of the Associate Director for Military Support, creating the Office of the
ADMA. The inspection report focused on those functions of the new Office of
the ADMA that were historically carried out by OMA.
23
SECRET/ / NOTORN/ / 20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET//NOFORN//20320630
24
SECRET//NOFORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
RN 20 20630 (b)(3)
-457474f17)
(2006-0007-IN, May 2007): \
(U// Agency Language Capabilities (2006-0008-IN, May 2007):
Although the Agency continues to have shortfalls in critical languages, the
Agency leadership's enhanced attention to language in recent years has led to an
overall strengthening of language capabilities. Thanks to the
the Agency is also better able to measure those capabilities. (b)(3)
In addition, the within CIA University (b)(3)
(CIAU) offers an impressive language training curriculum and has made strong
efforts to provide additional face-to-face instruction, self-instruction materials,
and testing opportunities to the work force.
(b)(1)
(b)(3)
(b)(5)
(b)(3)
(b)(5)
25
SECRETHNOFORN/ /20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
S'ECRET//NOFORN//20320630
26
SECRETHNOFORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
C-,
4_7
Sc-i-esfr)
0009-IN, June 2007):
(2006-
27
SECRET//NOFORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
.ICRET//NOFORN//20320G30
(U//E0) Human Resources (2006-0006-IN, June 2007): During the
course of this inspection, the D/CIA realigned Human Resources and launched a
new, broad strategic direction that had additional significant impact on HR. The
inspection uncovered a number of challenges that HR will need to confront as it
addresses these changes.
28
-51EeRE-T-ti-NefeRft(-7L243-32%30
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECPET// Nor RN//20320630
(b)(1)
(b)(3)
(b)(5)
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING FROM
PREVIOUS SEMIANNUAL REPORTS
(Wiz-F(3Tde) Retention in the Agency (2004-0011-IN, May 2005):
(b)(3)
(b)(5)
29
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(577"hif) The Directorate of Science and Technology's Technical
Support to the Directorate of Operations (2004-0010-IN, May 2005): Two of the
report's three remaining significant recommendations were recently closed. The
DS&T and NCS reported on the implementation of a framework for prioritizing
technical needs, tracking progress, and evaluating performance.
OIG will assess, as necessary,
aspects of DS&T support to operations in future inspections of DS&T
components and topics.
(U// CIA University (2005-00024N, October 2005):
(C//NF) Research and Development in the Central Intelligence Agency
(2005-0005-IN, December 2005):
2005)
-(C-7L7/44fi Leadership Analysis Follow-Up (2005-0009-IN, December
30
(b)(3)
(b)(5)
(b)(3)
(b)(5)
(b)(3)
(b)(5)
(b)(1)
(b)(3)
(b)(5)
(b)(1)
(b)(3)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
//
(S4-44) Agency Performance on North Korea (2005-0004-IN, June
2006):
(U// ) Office of Near East and South Asian Analysis (2005-0012-
IN, June 2006):
31
SECRET//NOPORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET/ / Nor RN/ / 20320630
(U/ /FOUO) Information Management Services (IMS) (2005-0013-IN,
June 2006): The report contains three significant recommendations, two of which
remain open. One requests that the Chief, IMS and the CIO produce a
development and implementation plan for an effective corporate electronic
records management system. A second recommendation requests that the
ADD/CIA review the plan for the electronic records management system and
facilitate a decision on if and how it should be funded and mandated. Actions
are underway to satisfy these recommendations. A third requested that the
Chief, IMS develop and implement a production plan for the Historical
Collection Program. In response to this recommendation, IMS has developed an
annual work plan, coordinated it with Agency directorates and the Historical
Review Panel, gained ADD/CIA approval for the plan, and provided the IG with
a status report noting program schedules, completed projects, and progress
achieved against the plan. These actions satisfy the third significant
recommendation. The inspection remains open.
( // ) CIA CounterTerrorism Center (2005-0006-IN, October 2006):
(c//Nr) Agency-Wide Performance on Russia (2005-0011-IN, October
2006):
32
(b)(3)
(b)(5)
(b)(1)
(b)(3)
(b)(5)
(b)(1)
(b)(3)
(b)(5)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOF RN//20320G30
(UHFOU0) Office of Iraq Analysis (2006-0005-IN, December 2006):
(..c-f-trqr) Office of Technical Collection (2006-00014N, December 2006):
(UHFOU0) Agency's Reliance on Contractors (2006-0003-IN, December
2006):
33
SECRET//NOFORN//20320630
(b)(1)
(b)(3)
(b)(5)
(b)(3)
(b)(5)
(b)(3)
(b)(5)
(b)(3)
(b)(5)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET//NOFORN//20320630
(b)(3)
(b)(5)
(U) SUMMARIES OF CURRENT INSPECTIONS
(UhLFetler) Near East and South Asia Division (2007-0003-IN):
(17/170U0) The Office of Russian and European Analysis (2007-0004-
IN): The inspection assesses mission performance, management effectiveness,
personnel and resource management, and customer and partner relationships.
(U/ /FOUO) Applications Services (2007-0001-IN): The inspection looks
at the overall office as well as a number of specific information technology
applications, assessing mission effectiveness, management performance,
personnel and resource management, and customer and partner relationships.
.4.C71-7'fcr) The Agency's Performance on
(2007-0002-IN):1
4C---/-/-Pd) Training of New DI and NCS Officers (2007-00054N): The
inspection focuses on several aspects of DI and NCS training of new officers,
including the quality of the DI's Career Analyst Program and other Essential
Skills courses, the quality of NCS's certification training for new
34
(b)(3)
(b)(3)
(b)(1)
(b)(3)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
and Headquarters-based officers, and the impact of the training on the
performance of DI and NCS officers.
41.1.7'ictr7 Agency Targeting Follow-Up (2007-0006-IN): The inspection�
a follow-up to OIG's 2003 inspection of Targeting Analysis�focuses on the
im act of the establishment of the Agency's targeting career tracks and
creation of mechanisms for sharing best practices
and enhancements to targeting training.
35
SECRET/ / NOFORN/ / 20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOF RN//20320630
(U) INVESTIGATIONS
(LI) INVESTIGATIONS STAFF OVERVIEW
(UHFOU0) The Investigations Staff is statutorily authorized to receive
and investigate complaints from any person concerning possible violations of
laws, regulations, policies, and procedures, as well as allegations of waste, fraud,
mismanagement, abuse of authority, and substantial dangers to public health
and safety related to Agency programs and operations. Investigations are
normally conducted unilaterally by OIG Special Agents, but other Federal
investigative elements can be called upon when law enforcement authorities are
necessary. The Staff also oversees the Agency's grievance system and conducts
proactive initiatives aimed at detecting and preventing fraud, waste, and abuse.
(uHrouo) The Staff conducted a range of other investigations,
including allegations of fraud by employees and contractors, possession of child
pornography, theft of US Government property, misappropriation of funds, and
false statements and claims.
(uHrouo) As a result of Staff investigations, three matters previously
referred to the Department of Justice (DoJ) for potential prosecution have been
resolved. In one matter, OIG Special Agents developed information that a now-
former employee may have embezzled approximately in cash from the
Agency. The former employee has entered a guilty plea in US District Court in
the Eastern District of Virginia and awaits sentencing. In another matter, OIG
Special Agents developed information regarding theft of government property
from an overseas location by an Agency contractor. The now-former contractor
has entered a guilty plea in the Northern District of Florida and awaits
sentencing. Finally, a former independent contractor entered a guilty plea in the
Northern District of California for falsifying background investigation reports on
potential employees. He also awaits sentencing.
The Staff continued resource-intensive investigations concerning
detention and interrogation activities. The Staff is nearing completion of an
investigation involving the rendition and detention of German citizen Khalid al-
Masri. The Report of Investigation will be issued shortly and will contain a
recommendation that the D/CIA convene an Accountability Board to consider
the actions of one former and two current Agency officers. In another completed
investigation�concerning the death of a detainee while under interrogation by
CIA personnel at Abu Ghurayb prison� senior Agency officers considered the
recommendations of an Agency Accountability Board
36
// //
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET/ Nor RN//20320630
Finally, a former Agency
contractor was sentenced to over eight years in prison following his conviction
on four counts of assault of a detainee in Afghanistan. Congressional oversight
committees are regularly informed of progress in these investigations.
(UHFOU0) The Staff's workload continues to grow. The Staffs
remaining investigative vacancies will be filled in the coming months with the
addition of three individuals who have substantial Federal law enforcement
experience.
(17 44917:Te) The nature of investigations faced by the Investigations Staff
has broadened dramatically in the past several years. The Staff has conducted
investigations of deaths, child pornography, significant thefts of money and
property, and numerous firearms-related matters. At the same time, the Staff has
had to become less reliant on assistance from the FBI and other traditional law
enforcement agencies.
(u/ /444T4e) The Staff continues to oversee the Agency-wide grievance
system, which seeks to resolve grievances at the lowest possible level in the
organization. In addition to sponsoring a yearly grievance counselor workshop
for component and directorate grievance officers, the Staff hosts regular meetings
of grievance officers to share issues of common interest, and it conducts
mandatory training for all new grievance officers. This training, together with
the emphasis on resolution at the lowest possible level, continues to contribute to
effective and timely grievance resolution.
(U) COMPLETED INVESTIGATIONS
(U/ /170U0) Death of Detainee in Afghanistan (2003-7285-IG): The Staff
completed an investigation into the June 2003 death of an Afghan national who
had been detained at a base collocated with a US Army contingent in Asadabad,
Afghanistan. In August 2006, a jury in the US District Court in Raleigh, North
37
SECRET/ / NOFORN/ / 20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(b)(3)
Carolina, convicted a former contractor on four counts of
assault for the beating of the detainee, who died shortly after the beating. On
13 February 2007, the former contractor was sentenced to 100 months of
confinement. The former contractor is the first American to be prosecuted under
the USA Patriot Act for actions against a foreign national in a foreign country. He
is also the first civilian convicted for mistreating a detainee in the wars in
Afghanistan and Iraq.
(U//FOU ) False Claims and False Statements (2004-75354G): The
Staff completed an investigation that found a former Agency contractor
fabricated security background reports and submitted false claims amounting
to The contractor confessed to these acts and has pled guilty to making
a false statement. He will make restitution to the government; sentencing is
scheduled for August 2007.
(uhfrouo) Embezzlement of Agency Funds (2006-8258-IG): The Staff
completed an investigation that established that an Agency finance officer
embezzled approximately of Agency funds by falsifying documents and
making false entries in the Agency's automated accounting system. The officer
resigned from the CIA, pled guilty to the felony charge of embezzlement, and
awaits sentencing in US District Court.
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING FROM
PREVIOUS SEMIANNUAL REPORTS
(S//NP) Death of Detainee in Afghanistan (2003-74024G): The Staff
completed an investigation in April 2005 concerning the death of an Afghan
detainee who died in November 2002 in CIA custody. DoJ declined prosecution
in September 2005.
* (U) When a significant recommendation remains unsatisfied for five consecutive semiannual
reports, the fifth report contains a statement setting forth the IG's view of the impact of the
recommendation remaining unsatisfied. OIG then ceases efforts to track its implementation.
38
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
Death of Manadal Al-Jamaidi (2003-7423-IG): The Staff
completed an investigation in November 2005 into the circumstances concerning
the 4 November 2003 death of an Iraqi detainee while under interrogation by
CIA personnel at Abu Ghurayb prison in Baghdad. The OIG Report of
Investigation was published on 3 November 2005; on 9 November 2006, DoJ
declined prosecution on this matter. CIA convened an Accountability Review
Board on 26 November 2006, as recommended by the OIG, to review the
performance
deliberations.
\ OIG was notified 011 11 July 2007 of the results of the
(b)(3)
Death of Iraqi Detainee (2003-7446-IG): The Staff completed an
investigation in July 2006 concerning the death of former Iraqi Major General
'Abid Hamad Mahawish Al-Mahalawi while in US military custody in Iraq. OIG
found that CIA personnel were not involved in the specific actions that directly
caused his death, during
a US Army-led interrogation the day before he died. The Report of Investigation
contains eight significant recommendations, one which remains open. It calls for
convening an Agency Accountability Board to review the performance of three
officers. In November 2006, an NCS Accountability Board was convened; OIG
has been informed that its findings and recommendations are under review by
Agency management.
39
SECRETHNOPORN//20320640
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(U) STATISTICAL OVERVIEW
(U) Audit Staff
(uhtrouo) During the period 1 January to 30 June 2007 the Audit Staff
issued 10 reports and made 36 recommendations to strengthen internal controls
over program management, covert actions, financial management, information
technology, and field station administration.
(U//trOU0) The Audit Staff had 31 audits ongoing at the end of the
reporting period.
(U) Inspection Staff
(U//FOU0) During the first six months of 2007, the Inspection Staff
completed seven inspections. At the end of the reporting period, the Staff also
had six ongoing inspections. In addition, the Staff closed five inspections.
(U) Investigations Staff
(U//l" OUe) The Investigations Staff completed work on 100 matters of
various types during this reporting period. Of this number, nine cases were of
sufficient significance to be the subject of a final report.
(UHFOU0) During this period, the IG formally referred eight matters to
DoJ based upon a reasonable belief that violations of Federal criminal law may
have been committed.
(uHrouo) As of 30 June 2007, 153 matters were in various stages of
review by the Investigations Staff.
SECRET/ / NOFORN/ / 20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET//NOFORN//20320G30
(U) COMPLETED AUDITS
1 January - 30 June 2007
(U) Financial Management
(U) The Agency's Process for Obtaining Refunds or Credits for Unused
Airline Tickets (2005-0030-AS)
(U) Information Technology
(U) Information Operations Network (2006-0001-AS)
(U) Operations
(S//NF)
(2005-0032-AS)
(U/ /FOUO) Terrorist Watchlisting (2005-0016-AS)
(U) Procurement
(U) Imprest Fund Credit Card Program (2005-0031-AS)
(U) Field Activities
2006-0006-AS)
(b)(1)
(2006-0007-AS) (b)(3)
(b)(1)
(2006-0005-AS) (b)(3)
(b)(1)
(2006-0010-AS) (b)(3)
(b)(1)
(b)(3)
(2006-0011-AS) (b)(1)
(b)(3)
FO RN
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(S//NF)
0026-AS)
(2006-
(U//...ECA:Tej
1(2007-0014-AS)
(2006-0029-AS)
(U) CURRENT AUDITS
30 June 2007
(U) Financial Management
(U) Independent Audit of the Central Intelligence Agency Fiscal Year 2007
Financial Statements (2007-0002-AS)
(U) Information Technology
(UHFOU0) Continuity and Contingency Planning for Critical CIA
Information Systems (2006-0023-AS)
(uHrouo)
(2006-0014-AS)
(U//FOU0) 2007 Independent Evaluation of the CIA's Information Security
Program and Practices Required by the Federal Information Security
Management Act (FISMA) (2007-0012-AS)
(U/ CIA's Operational Use of Biometric Technology (2007-0003-
AS)
(U) Operations
-(&)
(2006-0009-AS)
(b)(1)
(b)(3)
(U//FOU0)
(2007-0013-AS)
.',ECRET// NOFORN//20320630
(b)(3)
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
eitt-T-77944efeRftt20-3-28638�
(U) Procurement
(U//FOU0) Contract Award Process for the CASES Program (2006-0025-
AS)
(U//FOU0)
(2005-0027-AS)
(UHFOU0) Office of Technical Collection Contract Team (2007-0010-AS)
(C)
Construction and Renovation Project
Management (2006-0021-AS)
(UH-Fefie) Domestic Living Quarters Allowance Program (2006-0012-AS)
(uHrouo) Joint Audit of the Use of CIA Special Authorities in Support
of the National Geospatial-Intelligence Agency
(2007-0011-AS)
(U) Field Activities
(b)(1)
(2007-0005-AS) (b)(3)
(b)(1)
(2006-0031-AS)(b)(3)
(b)(1)
(2006-0020-AS)(b)(3)
(b)(1)
2007-0006-AS) (b)(3)
(b)(1)
(2007-0008-AS) (b)(3)
(b)(1)
2006-0027-AS) (b)(3)
(b)(1)
(2006-0030-A(b) (3)
(2006-0017-AS)
(b)(1)
2006-0019-AS) (b)(3)
(b)(1)
2006-0032-AS) (b)(3)
(b)(1)
(b)(3)
(2006-0016-AS) (b)(1)
(b)(3)
SECRET//NOFORN//29320630
Approved for Release: 2018/12/17 005500023
(b)(3)
(b)(3)
Approved for Release: 2018/12/17 005500023
(b)(1)
(2006-0015-AS) (b)(3)
(b)(1)
(2006-0028-AS) (b)(3)
(2007-0009-AS) ((bb))((31))
(2007-0007-AS) (b)(1)
(b)(3)
SECRETHNOTORN//20320630
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRETHNOFORN//2032000
(U) COMPLETED INSPECTIONS
1 January - 30 June 2007
(U/ /140:3�1444)
(UHVOU0)
(LW )
(U/
(U/ / FOUO)
(U/ /Tette)
(U//rouo)
(U//rouo)
(u//rouo)
(U//FOU0)
2006-0002-IN)
CIA Counterintelligence Center (2006-0004-IN)
Office of the Associate Director for Military Affairs (2006-0010-
IN)
(2006-
0007-IN)
Agency Language Capabilities (2006-0008-IN)
2006-0009-
IN)
Human Resources (2006-0006-IN)
(U) CURRENT INSPECTIONS
30 June 2007
Near East and South Asia Division (2007-0003-IN)
Office of Russian and European Analysis (2007-0004-IN)
Application Services (2007-0001-IN)
The Agency's Performance on
0002-IN)
Training of New DI and NCS Officers (2007-0005-IN)
Agency Targeting Follow-Up (2007-0006-IN)
SECRET//NOFORN//20320630
1,2007-
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(U) COMPLETED INVESTIGATIONS
1 January - 30 June 2007
(twrouo) Allegation of Misconduct by Senior Official
(2005-8166-IG*)
(U//FOU0) Allegation of Waste
(2004-7595-IG*)
Allegations of Detainee Abuse
(2005-8103-IG*)
(U) Alleged Conflict of Interest
(2005-8188-IG*)
(UHFOU0) Alleged Disclosure of Confidential Information
(2006-8374-IG*)
(U//FOU0) Alleged Medical Leave Bank Abuse
(2006-8416-IG*)
(UHFOU0) Alleged Misuse of Authority in the Directorate of Support
(2006-8463-IG*)
,(8') Alleged Use of Unauthorized Interrogation Techniques
(2006-8335-IG*)
(ty/EDI:fer, Conflict of Interest and Inappropriate Assignment of Contract
Requirements
(2005-7894-IG*)
* (U) These investigations resulted in a Disposition Memorandum rather than a Report of
Investigation.
-SteRef1'/4iEHRBTIK//20320640
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
SECRET//NOr RN//20320630
(U) CURRENT INVESTIGATIONS
As of 30 June 2007
(U) Category Number of cases
(U//FOU0) Grievances
Management and Supervision - Grievance
Other - Grievance
(U /F ) General Investigations
2
2
Criminal and Prohibited Acts
Conflicts of Interest 13
Embezzlement 3
False Claims - Other 8
False Claims/ Statements/ Vouchers 6
False Claims - Time & Attendance 24
False Claims - TBD 2
Firearms 4
Management and Supervision - Administrative 1
Megaprojects 3
Misconduct - Employee 4
Misconduct - Management 5
Procurement Fraud 19
Regulatory Violations 1
Retaliation 1
Theft/Misuse of Government Property 5
Other - Administrative/Criminal 35
Unauthorized Operation 1
Unsubstantiated Allegations 14
(uhi+eue)- Total Ongoing Cases 153
�SEC--RE-T-7474-1141�+05511-
Approved for Release: 2018/12/17 005500023
Approved for Release: 2018/12/17 005500023
(b)(3)
SECRET//NOFORN//20320630
Approved for Release: 2018/12/17 005500023