In a different release, the SIGAR reported that in at least one case, you were paying $500/gallon for diesel fuel. (The market price cap for diesel in Afghanistan is $5/gallon.) You might be surprised to learn that Sayed Bilal Sadath Construction Company, the contractor who received the $300,000 overpayment, hasn't sent it back. And why would they? They were paid $200,000 for thermostats only worth $2,000, and nobody complained. But here's my favorite part. Sayed Bilal Sadath Construction Company received this money for a contract to build a small, 100-bed hospital in Gardez, Afghanistan — an unfinished hospital that is almost two years behind schedule. Don't worry about it, though. The Afghan government has warned that it might not be able to use the hospital anyway, as its operation and maintenance costs are five times more than the hospital it's supposed to replace.
The main issue here is that bean counters are counting everything coming from the US, and ignoring products purchased in Europe (for example). Yes, transportation costs do add up, and so does the pay for those little third-world drivers who transport the goods through hostile territory,but can we really accept that a gallon of diesel is running $500?.
IMO, the major problem is the Paki's. They've been gouging us for the past 12 years. After that comes the Afghani's themselves. Karzai seems to think he's in charge and puts customs charges on everything coming into, or departing from A-stan, to include war materials.
Oh...the hospital? Some whiz-kid thinks it's a good idea to build a hospital and equip it with all the latest, greatest medical "stuff". The Afghani's don't have the infrastructure to support the logistics of re-supplying it, nor do they have the knowledge to repair or use a lot of the equipment we leave them.