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USAID anti-fraud hotline bags first high-profile case

Published: June 7, 2012

US decision to cancel funding for the program comes amid unrelenting tension between Islamabad and Washington. PHOTO: REUTERS

KARACHI: 

Corruption is an issue that has long plagued the country and one that every political party at some point in time has campaigned to end.

Little did one realise that dialing a nine-digit toll free number can lead to exposure of potential fraud cases – at least ones funded by the United States Agency for International Development (USAID).

The recent stoppage of funds by USAID to the Rafi Peer Theatre Workshop for Pakistan’s version of Sesame Street ‘Sim Sim Hamara’ was a result of one such call.

“A while back we received a phone call on our anti-fraud hotline and the person reported discrepancy in the “Sim Sim Hamara” project with credible evidence, as a result of which we started an investigation into the matter,” said Robert Raines, the spokesperson for USAID in Pakistan.

USAID immediately stopped funds for the $20million project, out of which $6.7 million had already been released to the Rafi Peer Theatre workshop. However, the agency is yet to label it as a fraud case.

”Since the matter is still under investigation we can’t conclude whether it is a fraud case or not and something substantial can only be said after the completion of the investigation,” the spokesperson said.

The Rafi Peer Theatre Workshop, however, denied the reports as baseless.

“There have been false and baseless allegations that USAID funding for Sim Sim Hamara has been terminated owing to allegations of corruption and financial mismanagement,” according to a statement released on Wednesday. “No written information, letter or notice of any inquiry or other investigation concerning the said allegations has been received by us from USAID or any other organisation or entity till date. “

Hotline project

According to the website of the anti-fraud hotline, USAID and Transparency International Pakistan (TIP) signed a five-year cooperative agreement on September 22, 2010 on the “Anti-Fraud Hotline” project.

The objective of the project is to ensure transparency and prevent corruption.

“This hotline is an integral part of the anti-fraud mechanism. It is a critical tool for making sure that there is no fraud in our project and to make sure that our assistance reaches those we are trying to help in Pakistan, “ Raines said.

He further said that “Sim Sim Hamara” case was probably the biggest high-profile case reported so far on the hotline, adding that he hoped this would encourage others to report fraud cases.

Funding for PCTV also ends

Before the launch of “Sim Sim Hamara” in December 2011, the Pakistan Children’s Television (PCTV) was inaugurated by US Ambassador Cameron Munter in October, 2011. The project was a collaboration between USAID and the Rafi Peer Theatre Workshop to facilitate learning through culturally- sensitive educational messages.

According to the PCTV’s website, the project was supposed to produce 78 Urdu-language episodes of PCTV’s flagship television series, “Sim Sim Hamara”. With USAID suspending its funding for the project, the future of other programmes that were supposed to be produced as part of the PCTV hangs in the balance.

“All I know is that we have only terminated the funding of the Sim Sim Hamara and that is it. I can’t say much about the future of PCTV,” Raines told The Express Tribune.

However, Faizan Peerzada, PCTV chief of party and representative of the Rafi Peer Theatre Workshop, said the withdrawal of funds for “Sim Sim Hamara” also means that USAID support for PCTV has come to an end as well.

“I know that Sim Sim Hamara and PCTV were launched as separate projects but they are actually one and the same. The two different names are misleading,” Peerzada told The Express Tribune.

Published In The Express Tribune, June 7th, 2012. 

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Reader Comments (37)

  • faraz
    Jun 7, 2012 - 9:00AM

    20 million dollar for a stupid theatre in a country where hundreds of thousands die of diseases related to unclean water. Americans are utterly clueless about PakistanRecommend

  • Jun 7, 2012 - 9:56AM

    People would have benefited from this program. If only pakistanis realized how much such initiatives would help the education of our children. sigh, another great opportunity potentially lost…

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  • Tahseen Shah
    Jun 7, 2012 - 11:15AM

    It is interesting that a phone call can terminates funding to a mega project without investigation. just want to say no sign of termination. we have to see the achievement of Rafi Peer last 35 years.

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  • S
    Jun 7, 2012 - 11:24AM

    @faraz: The USA has given billions of dollars in aid over the past ten years. Most of it went into the pockets of our politicians and generals. The aim of this particular programme was entertainment and education.

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  • hasan
    Jun 7, 2012 - 11:29AM

    a sad moment indeed….
    but USAID should not have put the allegations across unless they have the evidence for such a thing…. terminating a worthwhile project like this, could have long lasting effects on Pakistani children, and if there is evidence it shall be shared with all the pakistani nation and US citizens that they shall act accordingly….
    The pakistani company denies all the charges on them, if they are not gulity then this whole episode will just put yet another wrong and unfair label on Pakistan,
    I hope the investigations will be shared with everyone just like the allegations…. did USAID gave any timeline for such details?

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  • ajmal
    Jun 7, 2012 - 11:31AM

    @faraz: Americans may be clueless about Pakistan, but this was NOT ‘for a stupid theatre’, but an educational project and every bit as important as, say, a water filtering plant. There are lots of areas that need development in Pakistan, not just unclean water. While one may nitpick the actual TV program (Sim Sim Hamara), it cannot be denied that there have been NO locally produced programs for children that can be compared to it, at least in the last decade or so. In such a huge void, Sim Sim Hamara is a heaven-sent blessing.

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  • Dr. Doolittle
    Jun 7, 2012 - 12:14PM

    US has only recently become interested in doing something for education in Pakistan. Probably after realizing that their was a void that was conveniently filled in by the madrasah system. But then the madrasah system helped the US run down the Soviets! Well the madrasah wallas come home to roost and woke up the US. Now USAID which has wounded up its offices in Pakistan after driving the soviets out of Aghanistan finally came back. You cannot expect them to get going so soon.

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  • Anonymous
    Jun 7, 2012 - 12:23PM

    Finally, some clarity to the issue. Seems as if USAID doesn’t have much on these guys. Their statements have changed over the past 2 days.

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  • Pk
    Jun 7, 2012 - 1:06PM

    It takes 188 crores to make a childrens show with puppets? The biggest scam was convincing the US it would take much money in the first place!

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  • faraz
    Jun 7, 2012 - 1:18PM

    @ajmal

    People can DIE without clean water. You are comparing a matter concerning life and death with a theatre for children of the elites. Are poor people sub-human? Imagine a poor child who drinks water, falls ill and dies. 100,000 die each year in Pakistan from common preventable diseases related to water. Try to convince about this Sim Sim void to those tens of millions of children who don’t go to school or attend shabby government schools. USAID funding for a theatre is a cruel cruel joke

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  • Mohammad Kashif
    Jun 7, 2012 - 1:24PM

    @ Hasan,

    Ask me the evidence, since every copy is available for irregularity in procurement. Provide your e-mail address.

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  • Allah Ditta Pakistani
    Jun 7, 2012 - 1:54PM

    @ Faraz & @ Ajmal

    Thank you Faraz for sharing the harsh reality of Paksitan and i don’t know Ajmal has the ears to listen it.

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  • Anonymous
    Jun 7, 2012 - 2:35PM

    @Pk:
    The Peerzadas didnt have to convince the US. If you do your research properly, USAID advertised this $20 million project in all the leading newspapers in Pakistan. If anyone is dumb in this scenario, i’m afraid its USAID :p

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  • Hasan
    Jun 7, 2012 - 3:16PM

    kashif it would be the best possible thing you can do, if there is evidence it must be shared,
    [email protected] is my mail, feel free to share, i would like to get my facts straight.
    however i would also recommend that the evidence must be shared with the alleged party and whoever is conducting the investigations.

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  • bumble
    Jun 7, 2012 - 3:20PM

    @ Hasan,
    Ask me the evidence, since every copy is available for irregularity in procurement. Provide your e-mail address. — Have you heard “Extraordinary claims require extraordinary evidence” by Carl Sagan — I’m definitely waiting for the evidence Mr. Mohammad Kashif :) And if you’re clean enough provide/upload it to public not in email so public can see it too. Waiting for your response.

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  • belligrant1
    Jun 7, 2012 - 4:09PM

    avoid personal hate

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  • Mohammad Kashif
    Jun 7, 2012 - 4:09PM

    @ bumble,

    Our complaint has been addressed by relevant authorities. If you can bring on some one from Peerzada family then it will be wonderful.

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  • belligrant1
    Jun 7, 2012 - 4:17PM

    bad yellow journalism

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  • mills
    Jun 7, 2012 - 4:25PM

    hillarious

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  • Mohammad Kashif
    Jun 7, 2012 - 5:44PM

    @ Every One

    We educated Pakistani’s simply don’t admit there was corruption in the project. From Al-Jazeera to CNN, and from Hindustan Times to Tribune every one reported corruption on this project and pakistani people are commenting in fancy manner.

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  • Oopsie!
    Jun 7, 2012 - 5:44PM

    Ban Rafi theatre !- they have brought bad name to pakistan. it is all over the int’l media!!

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  • betterwords
    Jun 7, 2012 - 6:00PM

    And what do you think about FAKE polio vaccination compaign from USAID to trace down UBL. I have no faith at all on this fund. We are short sighted poeple and don’t understand the long term implications. The name tag “FUND” or “AID” is just to deceive common man , actuall this is US propaganda fund and we should avoid it at all costs. I have not seen an single project completed with the sort of fund in any part of country.

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  • Baba Ji
    Jun 7, 2012 - 6:48PM

    someone gets the big “birdie” !!!!

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  • anna Khan
    Jun 7, 2012 - 7:36PM

    Gosh….are people really that deluded…..do you honestly belive that the USA wants to ‘help’ Pakistan? or educate the massess? Wake Up The USA wants to dominate us with whichever means necessary, so if that means funding useless crap, they will do it as well as sending CIA agents all over Pakistan with bootfulls of asla to arm our enemies!!!

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  • no one
    Jun 7, 2012 - 10:56PM

    Education is the first thing we need, that is where Islam started from and I bet, this is solution for all of our problems, I think termination of this project will be a great loss. If anything wrong has happened, those who did it should be lime lighted and punished. I am hopeful that it will happen. Lets be realistic, appreciate our weaknesses and start building from here.

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  • Jun 8, 2012 - 10:26AM

    below is the press conference which was held after the news
    http://www.youtube.com/watch?v=kZxsh4c-Bjg

    come on people its just allegations for now, let them be proved first, We can’t judge and comment someone who has done a lot of work for their country just like that. It’s not right.

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  • belligrant1
    Jun 8, 2012 - 11:59AM

    Accusation without evidence is in progress and we are putting fuel on fire such a shame let the investigation finish and then we can discuss !!

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  • Fahad Amjad
    Jun 8, 2012 - 1:09PM

    It is the peerzada family othat has, for over three decades, played a pioneering role in puppetry, television/radio programming, theatre, national and international cultural festivals and art events in Pakistan, organising 25 international performing arts festivals and 8 folk puppet national festivals and setting up Pakistan’s first Museum of Puppetry, where folk traditions are kept alive through workshops and various support mechanisms for craftsmen. Never were they accused in 30 years or this. And not, with one call to a hotline, they have been slandered. and everyone is ready to bash them. How sad we are Pakistani’s.

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  • Uzma
    Jun 8, 2012 - 2:20PM

    @faraz: Excuse me but that program provided good education and entertainment to thousands of Pakistani children, the show is very popular. USAID also funds other development projects in the country and has done a lot in the rural areas, until recently when it has started shutting down projects due to the attitude of the Pakistan government. $20 million is peanuts for the Americans considering the amount of money they spend on their television shows. Too bad the children were the victims of the dirty politics between the two countries.

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  • Nabiha Anam
    Jun 8, 2012 - 2:56PM

    If you see their press conference footage http://www.youtube.com/watch?v=kZxsh4c-Bjg it is clear that Usaid has not even given them legal notice but somehow usaid has made comments to all. Also they have said they are open to transparent audit. Ab bolo sare US supporters.

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  • Nadia Khan
    Jun 8, 2012 - 8:23PM

    @ Nabiha,

    Already Pakistan’s rating on corrupt countries list has jumped up, USAID does not serves legal notices on corruption charges, they directly investigate the matter,

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  • belligrant1
    Jun 9, 2012 - 11:50AM

    I do know that USAID had informed RPTW of their withdrawal of funds long before this story broke and that there was not mention of corruption or fiscal misappropriation. the USAID presence in Pakistan is being slashed from around 140 projects to 35…
    also having worked with USAID i know that the procurement, purchasing, HR and auditing is closely monitored by USAID EVERY STEP OF THE WAY.
    there is no spending or movement without their approval. Basically they are closing shop in Pakistan and not wanting to say that they are running away from their commitments. easier to cry fraud, specially when someone else has cried it first. Also to date there has been ABSOLUTELY NO MOVEMENT TOWARDS AN INVESTIGATION RPTW HAS NOT EVEN BEEN NOTIFIED THAT THERE MAY BE NEED FOR ONE.
    audits are done in close collaboration with USAID and both internal and external auditors, there is no room for corruption (crtcy * )

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  • lady
    Jun 9, 2012 - 1:55PM

    Watch this. A discussion by Hasb-e-Haal on Rafi Peer Theatre Workshop. Shows how articles like the one above are a perfect example of framing organizations into false, baseless allegation which lack evidence. http://www.youtube.com/watch?v=Z5q2ZpOII1E&feature=youtu.be

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  • Peter Pannke
    Jun 10, 2012 - 11:31PM

    I have been taking part in RPTW festivals since 1997 and consider myself lucky to have cooperated with the Peerzada family ever since, in Pakistan as well as internationally. They are a competent and extremely hospitable team, much more so than many of the major international world music festivals. Receiving very little support from the Pakistani government, they have used their own funds to promote the hospitalty and heritage of Pakistan more than any other cultural organisation. The anonymus allegations raised now lack any proof, and it is a shame that USAID has withdrawn funds without providing any evidence, after awarding the contract to the family because they were – and are – simply the best professionals in the field. Once more Pakistan has been fooled by the Americans, and it is disheartening to learn that some Pakistanis are sending out hate mails and support the shady accusations which have been raised against an organisation they have reason to be proud of.

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  • Bisma
    Jun 13, 2012 - 10:41PM

    Well US committed a big mistake. When all the management is rafi peer’s family then who will be tell us that who is cheating.
    No competition. Its just like five people of a family playing bet. Whoever will win, Money will remain in their own family.

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