LEAD INSPECTOR GENERAL I REPORT TO THE UNITED STATES CONGRESS OVERSEAS CONTINGENCY OPERATIONS OPERATION INHERENT RESOLVE OPERATION PACIFIC EAGLE–PHILIPPINES JANUARY 1, 2018‒MARCH 31, 2018 LEAD INSPECTOR GENERAL MISSION The Lead Inspector General for Overseas Contingency Operations coordinates among the Inspectors General specified under the law to: • Develop a joint strategic plan to conduct comprehensive oversight over all aspects of the contingency operation. • Ensure independent and effective oversight of all programs and operations of the Federal Government in support of the contingency operation through either joint or individual audits, inspections, and investigations. • Promote economy, efficiency, and effectiveness and prevent, detect, and deter fraud, waste, and abuse. • Perform analyses to ascertain the accuracy of information provided by Federal agencies relating to obligations and expenditures, costs of programs and projects, accountability of funds, and the award and execution of major contracts, grants, and agreements. • Report quarterly and biannually to the Congress and the public on the contingency operation and activities of the Lead Inspector General. (Pursuant to sections 2, 4, and 8L of the Inspector General Act of 1978) FOREWORD We are pleased to submit the Lead Inspector General (Lead IG) quarterly report to the U.S. Congress on Operation Inherent Resolve (OIR) and Operation Pacific Eagle- Philippines (OPE-P). This is our 13th quarterly report on OIR and 2nd quarterly report on OPE-P, discharging our individual and collective agency oversight responsibilities pursuant to sections 2, 4, and 8L of the Inspector General Act of 1978. The United States launched OIR at the end of 2014 to militarily defeat the Islamic State of Iraq and Syria (ISIS) in the Combined Joint Area of Operations in order to enable whole-of-governmental actions to increase regional stability. The strategy to defeat ISIS includes military operations, as well as support for local security forces, diplomacy, governance, and stabilization programs. This report aligns information on the status of OIR according to the five strategic oversight areas—security, governance, humanitarian assistance, stabilization, and support to mission— adopted by the Lead IG agencies to structure their oversight. Designated a contingency operation in 2017, OPE-P supports the Philippine government in its efforts to isolate, degrade, and defeat ISIS affiliates and other terrorist organizations in the Philippines. The report provides an update on the status of counterterrorism operations and humanitarian assistance related to OPE-P. We include OPE-P in this report because it relates to the same broader counter-ISIS mission as OIR. This report also discusses the oversight work conducted by the Lead IG Offices of the Inspector General and our partner oversight agencies, as well as ongoing and planned oversight work, for the second quarter of Fiscal Year 2018, ending March 31, 2018. Working in close collaboration, we remain committed to providing comprehensive oversight and timely reporting on these contingency operations. Glenn A. Fine Steve A. Linick Ann Calvaresi Barr Principal Deputy Inspector Inspector General Inspector General General Performing the Duties U.S. Department of State U.S. Agency for International of the Inspector General and the Broadcasting Development U.S. Department of Defense Board of Governors On the Cover (Top row) A U.S. Air Force F-22 prepares to receive fuel from a KC-10 Extender over Syria. (U.S. Air Force photo); Recovered firearms from local terrorists inspected by some cabinet secretaries in Marawi. (Philippines Presidential Communications Operations Office photo); The United Kingdom Bridge Training Team advises and assists Iraqi Security Forces in construction of a bridge over the Tigris River in Mosul. (U.S. Army photo); A young boy smiles, cheers and flashes a “V” for victory sign during a school break in Raqqah, Syria. (U.S. Army photo). (Bottom row): Iraqi Army soldiers practice drill and ceremony movements in Baghdad, Iraq. (U.S. Army photo). MESSAGE FROM THE LEAD INSPECTOR GENERAL I am pleased to present this quarterly report on the status of two overseas contingency operations: Operation Inherent Resolve (OIR) and Operation Pacific Eagle—Philippines (OPE-P). This report summarizes the quarter’s events for both operations and describes completed, ongoing, and planned Lead Inspector General (Lead IG) and partner agency oversight work related to OIR and OPE-P activities. During the quarter, U.S.-supported Iraqi Security Forces drove ISIS out of most of the physical territory it held in Iraq. ISIS also lost ground in Syria. Despite its territorial losses in Iraq and Syria, however, ISIS retained the ability to carry out attacks in both countries. In addition, U.S. officials warned that with the decline of ISIS, Iran’s increasing Glenn A. Fine influence in Iraq, through its support of Shia militias within the Popular Mobilization Forces, could disrupt stabilization efforts and could also complicate efforts to hold free and fair parliamentary elections that are set for May 2018. A critical challenge to holding elections as scheduled is ensuring that the more than 2 million internally displaced people can get to the polls. The Turkish invasion of the Kurdish enclave of Afrin in northwestern Syria resulted in what DoD officials described as an “operational pause” in the effort to defeat ISIS. Many Kurdish members of the U.S.-backed Syrian Democratic Forces halted fighting ISIS in northeastern Syria to assist their Kurdish brethren in Afrin. Overall, the future of U.S. military, stabilization, and humanitarian operations in Syria remains challenging and uncertain. This quarter, the Lead IG agencies and our oversight partners issued six reports related to OIR. We have issued reports on the Syria Train and Equip Fund, contract management and administration issues at the DoD and DoS, and DoD funding for Operations and Maintenance requirements. Investigators from the Lead IG agencies and their partner agencies coordinated on 84 open investigations involving procurement fraud, corruption, grant fraud, theft, program irregularities, cyber intrusions, and trafficking in persons allegations. My Lead IG colleagues and I remain committed to oversight of both OIR and OPE-P. We thank the dedicated employees of each Lead IG agency who conduct this important work, both here in the United States and abroad. Glenn A. Fine Principal Deputy Inspector General Performing the Duties of Inspector General U.S. Department of Defense Iraqi Army soldiers practice drill and ceremony movements in Baghdad, Iraq. (U.S. Army photo) CONTENTS EXECUTIVE SUMMARIES................................1 COMPLETED OIR OVERSIGHT OIR and Other Activities in Iraq and Syria ........... 1 ACTIVITIES ..........................................................59 Operation Pacific Eagle-Philippines .................. 11 Lead IG Staffing .................................................. 60 Outreach ............................................................. 60 OPERATION INHERENT RESOLVE ...........13 Completed Audit, Inspection, Security .............................................................. 14 and Evaluation Reports for OIR ......................... 62 Governance and Civil Society ............................ 34 Investigations ..................................................... 67 Humanitarian Assistance ................................... 39 Hotline Activity ................................................... 70 Stabilization ....................................................... 47 Support to Mission ............................................. 51 ONGOING AND PLANNED Philippine Counterterror Operations OIR OVERSIGHT ACTIVITIES ......................73 on Mindanao This Quarter ............................... 103 Humanitarian Assistance ................................. 104 Strategic Planning .............................................. 74 Oversight of OPE-P ........................................... 107 Ongoing Oversight Activities for OIR ................. 77 Planned Oversight Activities for OIR ................. 86 APPENDICES ....................................................109 OPERATION PACIFIC EAGLE- Acronyms and Definitions ................................ 115 PHILIPPINES ......................................................91 Maps.................................................................. 116 Endnotes ����������������������������������������������������������� 119 The OPE-P Mission ............................................. 93 ISIS-P After Marawi ............................................. 98 EXECUTIVE SUMMARIES ABOUT THIS REPORT This report is issued pursuant to sections 2, 4, and 8L of the Inspector General Act of 1978, which require that the designated Lead Inspector General (Lead IG) provide a quarterly report, available to the public, on each overseas contingency operation (OCO). The Department of Defense (DoD) IG is the designated Lead IG for Operation Inherent Resolve (OIR) and Operation Pacific Eagle— Philippines (OPE-P). The Department of State (DoS) IG is the Associate Inspector General for OIR and OPE-P. The U.S. Agency for International Development (USAID) IG also participates in oversight for both operations. The Offices of Inspector General of DoD, DoS, and USAID are referred to here as the Lead IG agencies. Other partner agencies also contribute to this oversight. This report covers both operations for the period from January