Unpaid Debts Eroding Afghan Reconstruction, Report Finds

Law360, New York (June 20, 2013, 7:41 PM EDT) -- Unpaid subcontract debts threaten the stability of the U.S.' rebuilding effort in Afghanistan, and relations with Afghan businesses have worsened to the point that one subcontractor threatened to set himself on fire in protest, according to a Thursday report.

The Special Inspector General for Afghanistan Reconstruction said that the disputes over U.S. contractors' payments to their Afghan subcontractors have become a “serious problem.” Of the 753 complaints that SIGAR has received on its investigations hotline since 2009, 183 complaints have revolved around subcontractor nonpayment issues, leading...
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