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SIGAR claims almost $11 million in US funds paid to IEA government

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The Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR) said in its latest audit report that US government implementing partners paid at least $10.9 million to the Islamic Emirate government in the form of taxes, fees, import duties, or for the receipt of permits, licenses, or public utility services since August 2021.

SIGAR also claimed the IEA “disrupted implementing partner activities through various means, including attempts to divert aid or infiltrate nongovernmental organizations (NGOs) and interfere with their activities, which in some cases, negatively impacted the implementation of activities and diverted aid from the intended beneficiaries.”

SIGAR stated that of the $10.9 million, $10.4 million was spent on taxes; $346,839 on payments for utilities; $176,596 on fees; and $9,215 on customs duties.

SIGAR also found that the $10.9 million paid by 38 US Department of State (State), US Agency for International Development (USAID), and US Agency for Global Media (USAGM) implementing partners is likely only a fraction of the total amount of US assistance funds provided to the IEA in taxes, fees, duties, and utilities.

SIGAR reported this is because “UN agencies receiving US funds did not collect data or provide relevant information about their subawardees’ payments.”

According to SIGAR, from October 2021 through September 2023, the UN received $1.6 billion in US funding for programing in Afghanistan, approximately 63% of all US assistance funding for Afghanistan during that period.

“UN agreements with State and USAID do not include any requirements to annually report on taxes, fees, duties, or utilities incurred on US funds provided for activities in Afghanistan,” SIGAR stated.

SIGAR noted however that “implementing partners can experience significant consequences if they fail to pay the taxes, fees, duties, and utilities required by the Taliban-controlled (IEA) government of Afghanistan.”

However, Zabihullah Mujahid, the spokesman of the Islamic Emirate, said in response to SIGAR’s latest report that Afghanistan’s caretaker government does not interfere in the process of distributing aid and the work of institutions.

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IEA provides 200 million AFN to victims of last year’s Kandahar fire

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The Islamic Emirate has provided 200 million AFN in cash assistance to traders in Kandahar whose goods were destroyed in a fire last year.

The fire occurred in the auto parts market of Spin Boldak district, Kandahar, burning down 250 shops and causing losses estimated at 550 million AFN to the traders.

Nooruddin Turabi, acting head of the National Disaster Management Authority, stated that the total damages amount to approximately 550 million AFN.

Meanwhile, the affected traders have expressed satisfaction upon receiving the assistance, calling it an important step toward reviving their businesses.

Meanwhile, officials from the Kandahar Chamber of Commerce are urging the Islamic Emirate to implement a comprehensive development plan in the district to prevent future fires.

Sediq Mohmand, head of the Kandahar Chamber of Commerce, said: “Our request to the government is to implement a master plan in Spin Boldak district so that commercial, residential, and market areas can be clearly and properly organized.”

According to Kandahar firefighting officials, there were 126 fire incidents in the province last year. They reported that their efforts in controlling the fires prevented damages worth 2.31 billion AFN.

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China interested in financing Trans-Afghan railway project: Pakistan FM

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Ishaq Dar, Pakistan’s Deputy Prime Minister and Foreign Minister, announced on Thursday that China has expressed interest in financing the Trans-Afghan Railway project, which aims to connect Uzbekistan with Pakistan through Afghanistan.

Speaking at a press conference, Dar said that during his recent visit to Beijing, he held discussions with Chinese and Afghan officials regarding the railway project. He emphasized that the time has come to move forward with its implementation.

He also stated that during a trilateral meeting in Beijing, Pakistan, Afghanistan, and China agreed that none of the three countries would allow their territory to be used against one another.

According to Dar, both Afghanistan and China jointly committed to preventing terrorist groups from operating within their borders.

Addressing regional security concerns, Dar noted that terrorism is not an issue that can be resolved with the push of a button, but one that requires time and continued cooperation.

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Deputy PM Baradar launches 10-megawatt solar power project in Laghman

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Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar launched the implementation of a 10-megawatt solar power project in Afghanistan’s eastern Laghman province on Thursday.

During the inauguration ceremony, Baradar called the project a significant step toward clearn energy production, which will not only help meet part of the country’s demand for sustainable energy but will also play an effective role in addressing climate change.

He said that the Islamic Emirate of Afghanistan (IEA) is committed to achieving self-sufficiency in the electricity sector through vital projects like this.

According to him, these initiatives are not only crucial for electricity generation but also for boosting the national economy, creating employment opportunities, attracting domestic and foreign investment, and improving public services.

The Deputy Prime Minister also noted that seven major electricity generation contracts with a combined capacity of over 228 megawatts have recently been signed nationwide, with the Laghman solar project forming a part of this broader effort.

Baradar reiterated that the Islamic Emirate’s economic strategy focuses on reducing dependence on foreign sources and maximizing domestic capacities.

He noted that Afghanistan currently relies heavily on imported electricity, which not only incurs high costs but also leads to significant currency outflow.

He emphasized that security is the most crucial factor for initiating and completing economic and investment projects and assured full support from the Islamic Emirate to both local and international investors.

Calling on investors to focus on sectors such as electricity, the Deputy Prime Minister highlighted that the Islamic Emirate has provided extensive facilities and is ready to offer full cooperation.

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