Lead Inspector General for Overseas Contingency Operations OPERATION INHERENT RESOLVE DoD DoS USAID OFFICE OF OFFICE OF OFFICE OF INSPECTOR GENERAL INSPECTOR GENERAL INSPECTOR GENERAL Quarterly Report to the United States Congress October 1, 2015−December 31, 2015 FOREWORD We are pleased to submit the Lead Inspector General (Lead IG) quarterly report to Congress on Operation Inherent Resolve (OIR). This is our fourth quarterly report on the overseas contingency operation (OCO), discharging our individual and collective agency oversight responsibilities pursuant to section 8L of the Inspector General Act of 1978, as amended. The OCO is dedicated to countering the terrorist threat LEAD INSPECTOR GENERAL MISSION posed by the Islamic State of Iraq and the Levant (ISIL) in Iraq, Syria, and the broader The Lead Inspector General for Overseas Contingency Operations will coordinate international community. The U.S. counter-ISIL strategy includes support to military among the Inspectors General specified under the law to: operations associated with OIR as well as diplomacy, governance, security programs and activities, and, separately, humanitarian assistance. • develop a joint strategic plan to conduct comprehensive oversight over all aspects of the contingency operation This quarter, Principal Deputy Inspector General for the Department of Defense (DoD) Glenn Fine assumed the roles of Acting DoD Inspector General and Lead Inspector • ensure independent and effective oversight of all programs and operations of the General with the departure of the Honorable Jon Rymer. Mr. Fine joined DoD in June federal government in support of the contingency operation through either joint 2015, having previously served as the Inspector General of the Department of Justice or individual audits, inspections, and investigations for 11 years. In addition, during this quarter, Ann Calvaresi Barr was confirmed as • promote economy, efficiency, and effectiveness and prevent, detect, and deter the Inspector General for U.S. Agency for International Development. She served fraud, waste, and abuse previously as the Deputy Inspector General at the Department of Transportation and brings more than 30 years of experience in the federal oversight community. • perform analyses to ascertain the accuracy of information provided by federal agencies relating to obligations and expenditures, costs of programs In early December, we briefed interested congressional parties on the work of the and projects, accountability of funds, and the award and execution of major Lead IG as it relates to the three OCOs that were designated during the past year. contracts, grants, and agreements Approximately 25 congressional staff members, representing 8 committees from the Senate and House of Representatives, 3 members’ offices, and the Congressional • report quarterly and biannually to the Congress on the contingency operation Research Service, participated in the discussion on the individual OCOs as well as and activities of the Lead Inspector General the Lead IG oversight concept. As a group, we highlighted lessons learned and best practices that will continue to shape our oversight work. (Pursuant to section 8L of the Inspector General Act of 1978, as amended) This quarterly report provides an update on OIR and the counter-ISIL strategy, including Lead IG observations and findings from our oversight activities. It also highlights activities related to OIR from Inspectors General at the Departments of Homeland Security, Justice, and the Treasury. We look forward to continuing our information sharing, coordination, and collaboration among our oversight partners. /s/ /s/ /s/ Glenn A. Fine Steve A. Linick Ann Calvaresi Barr Acting Inspector General Inspector General Inspector General U.S. Department of Defense U.S. Department of State and the U.S. Agency for International Broadcasting Board of Governors Development CONTENTS EXECUTIVE SUMMARY 1 HUMANITARIAN ASSISTANCE 89 OPERATION Overview 90 INHERENT RESOLVE 11 U.S. Government U.S. Strategy Update 12 MESSAGE FROM THE LEAD IG Strategy and Response 92 U.S. Funding 18 Syria Complex Crisis 97 As the newly designated Lead Inspector General for Supporting Effective Iraq Complex Crisis 104 Operation Inherent Resolve (OIR) and the associated Governance in Iraq 21 humanitarian crisis, I am pleased to present to Congress our fourth quarterly report on OIR. Denying ISIL Safe Haven 24 APPENDIXES Inspector General Rymer, who resigned as the Department Building Partner Capacity 43 APPENDIX A: U.S. Oversight Projects 114 of Defense (DoD) Inspector General on January 8, 2016, was Enhancing Intelligence instrumental in creating the Lead Inspector General (Lead Collection on ISIL 59 APPENDIX B: IG) concept. I thank him for his leadership in promoting and Letters of Reaffirmation 119 implementing the Lead IG model as an effective method for Exposing ISIL’s True Nature 63 APPENDIX C: improved collaboration and coordination of the oversight Disrupting ISIL’s Finances 70 The Lead Inspector of overseas contingency operations. General Model 123 Glenn A. Fine Disrupting the Flow of I also recognize and thank Catherine Trujillo, former Acting Foreign Terrorist Fighters 78 APPENDIX D: Deputy Inspector General, U.S. Agency for International Development (USAID), for her Section 8L of the Protecting the Homeland 81 Lead IG efforts. Ms. Trujillo oversaw USAID reporting for the U.S. humanitarian crisis Inspector General Act of 1978, as amended 125 in Syria and Iraq as well as comprehensive Lead IG reporting to Congress on the Ebola crisis. In the months ahead, we look forward to working with USAID’s new Inspector ACRONYMS General, Ann Calvaresi Barr, who was confirmed in November 2015. AND DEFINITIONS 129 OIR saw significant changes, successes, and challenges this quarter. In October 2015, for example, the United States and its global coalition partners intensified strikes on ENDNOTES 131 ISIL targets, focused on retaking cities in Iraq and Syria, destroyed oil infrastructure and supply routes, and killed several of ISIL’s high-value fighters. However, many challenges remain , including clearing explosives and remaining ISIL fighters from liberated areas and providing critical stabilization support in cities like Tikrit and Ramadi, a city estimated to be 80% in ruin. The humanitarian and refugee crisis remains dire. Water, food, and other basic needs are still limited for millions of people displaced internally and millions who have fled to refugee locations outside of Syria or Iraq. My Lead IG colleagues and I are committed to effective oversight and timely reporting on OIR. In these efforts, we appreciate and rely on the dedication of the teams of OIG employees in the field, who perform the day-to-day planning, analysis, and oversight work for our organizations. We thank them for the hard work and sacrifice. /s/ Lead Inspector General for Operation Inherent Resolve Glenn A. Fine Acting Inspector General U.S. Department of Defense EXECUTIVE SUMMARY EXECUTIVE SUMMARY Developments on a number of fronts this quarter illustrate both the changing nature of the threat posed by the Islamic State of Iraq and the Levant (ISIL) and the evolving approach to combatting it. The United States continues to lead the Global Coalition to Counter ISIL, which includes more than 60 countries that joined with Iraq to defeat this terrorist group. Activities across the nine lines of U.S. effort demonstrate the transnational nature of the threat and the need for global coordination and cooperation. Pursuant to their congressional mandate, the Lead Inspector General (Lead IG) agencies are required to report quarterly to Congress and the public on OIR. This quarterly report covers the events and activities that occurred related to OIR and the associated humanitarian crisis during the period October 1–December 31, 2015. For a timeline of selected major events this quarter, see next page. INTENSIFIED MILITARY ACTIVITY On October 27, 2015, Secretary of Defense Ashton Carter discussed the U.S. military’s adapted campaign strategy, calling it the 3Rs, for Raqqah, Ramadi, and Raids.1 The framework on the overall conduct of coalition operations remains the same, but the intent is to be more effective on the ground, to intensify airstrikes, and to attack ISIL infrastructure and supply routes. By the end of December 2015, with the support of coalition airstrikes, counter- ISIL forces in Syria took control of Tishrin Dam and major nearby supply routes nearby in Syria. The coalition launched Operation Tidal Wave II in Syria to destroy ISIL’s oil business, and coalition airstrikes were instrumental in liberating Sinjar, Iraq, and most of Ramadi, in Iraq’s Anbar province, by the end of December.2 Clearing operations in Ramadi continue. Post-battle stabilization efforts are the next challenge for the Government of Iraq (GOI) and the coalition, including steps to provide basic services and security. According to the Department of Defense (DoD), about 2,800 Sunni tribal fighters had completed a brief training program as of December 2015 and will serve as the foundation for the holding force in Ramadi.3 However, Anbar officials described Ramadi as 80% destroyed, estimating that it may cost up to $10 billion to rebuild.4 As of January 3, 2016, the coalition had launched more than 9,300 airstrikes, with about 78% conducted by the United States.5 During a 3-week period in December, coalition airstrikes killed 10 leaders characterized by DoD as high- value ISIL fighters.6 QUARTERLY REPORT TO CONGRESS 1