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SIGAR report says no specific controls in place to ensure Afghan Fund is not misused

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(Last Updated On: January 9, 2024)

In response to a request by the US House Foreign Affairs Committee for information on the oversight and management of the Afghan Fund, which holds $3.5 billion of Afghanistan’s frozen funds, the US Special Inspector General for Afghanistan Reconstruction (SIGAR) said there are currently no specific controls in place to ensure funds are not diverted to or misused by the Islamic Emirate.

SIGAR chief John F. Sopko stated that as of September last year, the Fund had made no disbursements for activities intended to benefit the Afghan people. The US “Treasury and State are not currently willing to support a return of funds to DAB (Afghanistan’s central bank),” Sopko’s report read.

SIGAR also stated “the Taliban (IEA) are not part of the Afghan Fund, and robust safeguards have been put in place to prevent [Fund monies] from being used for illicit activity.”

However, the report stated that “the fund’s articles of association do not explicitly refer to the Taliban, and there are currently no specific controls in place to ensure funds are not diverted to or misused by the Taliban.”

SIGAR also stated that the US Treasury has reported that “a compliance program to prevent funds from being provided to sanctioned or criminal individuals, including members of the Taliban, was under development.”

The report also stated that neither the US Treasury nor State Department was currently “willing to support a return of funds to DAB.”

The report however pointed out that one of the Fund’s trustees is also a member of DAB’s governing body, the Supreme Council. “It is not clear whether this constitutes a conflict of interest in the form of competing fiduciary responsibilities. It is also unclear who determines whether a conflict of interest exists or how it is defined,” read the report.

In addition, Sopko reported that the “State was unaware that one of the individuals it selected to be a fiduciary of DAB’s assets was fired from a previous position for misrepresenting his credentials, raising questions about the adequacy of State’s vetting process through which this individual became a co-fiduciary of $3.5 billion of DAB assets.”

The Afghan Fund is a Swiss-based foundation capitalized with $3.5 billion of the approximately $7 billion of Afghan central bank assets deposited in US financial institutions after the former Afghan government collapsed in August 2021.

The Islamic Emirate has repeatedly asked the international community to unfreeze Afghanistan’s foreign exchange reserves.

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Baghlan floods leave 315 dead and over 15,00 injured so far

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(Last Updated On: May 12, 2024)

The Ministry of Refugees and Repatriations (MoRR) has confirmed that so far, 315 people have died and 1,630 others injured due to recent floods in Baghlan province.

The ministry announced the figure Sunday in a statement and said that 665 houses were completely or partially destroyed and 1,000 livestock were lost.

The ministry stated that the death toll may increase and that huge financial losses have been incurred.

On a trip to Baghlan, Mullah Abdul Ghani Baradar, deputy prime minister for economic affairs, said that the Islamic Emirate would help the flood victims with all possible means.

Baradar added that families affected by the floods will be assisted.

In addition, the ministry also announced the shipment of aid packages to the flood victims of Baghlan, which includes clothes, tents and tarpaulins.

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Uzbekistan plans to buy 1 million tons of coal from Afghanistan

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(Last Updated On: May 12, 2024)

A high-level delegation from Uzbekistan has said during its visit to Kabul that it wants to send its technical team to Kabul to discuss the purchase of one million tons of coal from Afghanistan.

The delegation, which included the Minister of Transport Ilkhom Mahkamov, and Ismatullah Irgashev, Uzbekistan’s special envoy for Afghanistan, stated this in a meeting with Amir Khan Motaqqi, Afghanistan’s Acting Minister of Foreign Affairs.

According to a statement released by the Ministry of Foreign Affairs on Sunday, the two sides discussed bilateral political and economic relations, regional connectivity, transit projects, trade, joint investment, and the role and importance of transit between Afghanistan and Uzbekistan.

Muttaqi said that Afghanistan has returned to the path of peace and stability after a long time, and this is a good opportunity for Uzbekistan, other neighbors and the region to take advantage of the Islamic Emirate’s economy-oriented regional connectivity policy.

Meanwhile, Uzbekistan’s transport minister Mahkamov stated that this time he is visiting Kabul with a strong technical team, which consists of representatives of the private sector, railway, geological and mining engineers.

He said that Uzbekistan supports the policy of the Islamic Emirate, which wants Afghanistan to become the transit hub of the region.

He pointed out that he has brought a team of engineers with him to start the practical work and feasibility studies of the Trans-Afghan railway project, and another team will visit Afghanistan this week with equipment.

Mahkamov said that Uzbekistan is ready to provide customs and border services 24 hours a day and reduce tariffs.

Meanwhile, Uzbekistan’s special representative for Afghanistan, Irgashev, stated that his country is now issuing long-term visas for truck drivers and traders, and it will extend to education, health and tourism visas.

He added that Uzbek engineers will travel to Afghanistan in the near future for the purpose of starting the construction of Imam Bukhari madrasa in Mazar-e-Sharif.

According to him, Uzbekistan is ready to work jointly with the Ministry of Information and Culture of Afghanistan over the restoration of historical sites and shrines.

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Investing in Afghanistan mines can be profitable for Iranian industry: Qiafeh

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(Last Updated On: May 12, 2024)

Qadir Qiafeh, the vice-chairman of the Iranian Chamber of Commerce, has said that several large mining companies have formed a consortium with the aim of entering Afghanistan’s mining sector.

“And an Iranian steel corporation is also making serious decisions to enter Afghanistan’s mining market,” Qiafeh said in an interview with ILNA.

“In the past several years, there have been negotiations between Iran and Afghanistan focusing on mines, and it was about 10 to 12 years ago that two Iranian companies entered Afghanistan’s mines,” he added.

“Investing in Afghanistan can be profitable for the Iranian industry sector, deepen the relations between the two countries and lead to long-term cooperation,” he said.

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