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SIGAR report says no specific controls in place to ensure Afghan Fund is not misused
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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IEA should respond to Pakistan’s security concerns with concrete actions: Andrabi
Pakistani Foreign Ministry spokesman Tahir Hussain Andrabi says both Pakistan’s Prime Minister Shehbaz Sharif and Sadyr Japarov, the President of Kyrgyzstan, who visited Islamabad on Thursday, expressed their mutual commitment to a peaceful, stable Afghanistan with a sustainable future for the Afghan people.
Speaking in a press conference on Friday, Andrabi stated that both sides agreed that the Islamic Emirate must fulfill its obligations toward the international community and take concrete steps against terrorist groups to address Pakistan’s legitimate security concerns.
This comes while the Islamic Emirate of Afghanistan has repeatedly emphasized that no terrorist groups operate from Afghan territory and that it will not allow anyone to use Afghan soil against any country.
The Islamic Emirate has also stated that Pakistan’s security concerns are an internal issue of that country, and Pakistan itself must take measures to prevent any security incidents.
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Malaysia’s PM calls peaceful solution to Afghanistan-Pakistan tensions
Malaysian Prime Minister Datuk Seri Anwar Ibrahim has voiced deep concern over escalating tensions between the Afghanistan–Pakistan during a telephone conversation with Pakistan’s Prime Minister Shehbaz Sharif.
In a statement posted on Facebook, Anwar said he emphasized Malaysia’s concerns regarding regional stability and urged all parties to pursue a peaceful resolution through dialogue and diplomatic engagement to prevent further escalation.
His remarks follow media reports indicating heightened tensions between Afghanistan and Pakistan after a series of attacks in October.
During the call, the two leaders also exchanged views on several aspects of Malaysia–Pakistan bilateral relations.
Anwar also briefed Sharif on the ongoing flood situation in Malaysia and similar challenges facing neighboring countries, including Indonesia and Thailand.
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Afghanistan makes major strides in cutting drug trafficking, says Putin
Putin stated that Afghan authorities have “substantially reduced” opium cultivation and are “seriously confronting” drug-related threats from within their borders.
Russian President Vladimir Putin says Afghanistan has taken “active and effective” steps to curb drug trafficking, noting a significant drop in opium production across the country. He made the remarks during an exclusive interview with India Today during his India trip, highlighting what he described as “visible progress” in Afghanistan’s internal security efforts.
Putin stated that Afghan authorities have “substantially reduced” opium cultivation and are “seriously confronting” drug-related threats from within their borders. He added that Afghanistan has also made important advancements in the fight against terrorism.
Responding to a question about why Russia officially recognized the Islamic Emirate, the Russian president said Afghanistan had been engulfed in civil conflict for many years, but the current authorities now hold control over the country. “This is the reality, and it must be acknowledged,” Putin emphasized.
He further noted that maintaining contact with Afghanistan’s leadership is crucial for shaping events inside the country. “If you want influence, you must engage with the people in charge — and that is exactly what we are doing,” he said.
Putin’s remarks come as several regional powers continue to recalibrate their diplomatic strategies toward Afghanistan, focusing on stability, counterterrorism, and economic cooperation.
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