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

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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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Ariana Airlines brings $2.3 million Boeing 737 engine from US to Kabul

The airline said the delivery represents an important step in strengthening its technical and operational capacity and supporting the continued operation of its fleet.

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Ariana Afghan Airlines has brought a Boeing 737 aircraft engine from the United States to Kabul following continued efforts by the airline’s leadership to complete the shipment.

According to Ariana Afghan Airlines’ media office, the engine had been held up in the United States due to customs procedures. Following completion of the required process, the engine was cleared and transported to Kabul.

The engine was purchased from US-based Global Engine for $2.3 million. Ariana’s technical team is expected to install the engine on one of the airline’s Boeing 737 aircraft following its arrival.

The airline said the delivery represents an important step in strengthening its technical and operational capacity and supporting the continued operation of its fleet.

Ariana Afghan Airlines’ leadership said it is also working to accelerate the procurement of additional spare parts and technical equipment required to maintain and support the airline’s aircraft and operations.

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Afghanistan issues more than 650,000 passports in one year

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Zabihullah Mujahid, spokesperson for the Islamic Emirate, says more than 650,000 ordinary passports were issued across Afghanistan over the past Hijri year, while the visas of more than 16,000 foreign nationals were extended.

Mujahid made the remarks during the “Government in the Media Mirror” program, held under the theme “Public Services Week.”

According to him, the General Directorate of Statistics and Information also distributed nearly 2 million electronic national ID cards and around 1 million paper ID cards during the 1447 Hijri year.

Mujahid added that the agency provided hundreds of thousands of in-person and online services related to corrections and amendments to national ID cards over the past year.

The Islamic Emirate spokesperson said the General Directorate of Passports has sought to make services faster and easier by reducing the passport application form from nine pages to one page.

He also announced an expansion of services by the state-owned Afghan Post, saying the company delivered more than 5 million domestic mail items over the past year.

According to Mujahid, other measures to expand postal services included verifying and certifying hundreds of thousands of documents, launching express services, establishing a customer service center, and delivering documents directly to people’s homes.

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Construction begins on major cement production plant in Herat

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Construction of a major cement production plant has officially begun in Afghanistan’s western Herat province, with the project expected to receive $143 million in investment and create thousands of jobs.

The groundbreaking ceremony was held on Sunday in the presence of senior officials of the Islamic Emirate, including the Deputy Prime Minister for Economic Affairs, the Deputy Prime Minister for Administrative Affairs and several cabinet ministers.

Homayoun Afghan, spokesperson for the Ministry of Mines and Petroleum, said the project has been contracted to a local company and that construction is expected to be completed within two years.

Once operational, the plant is expected to produce around 3,000 tonnes of cement per day, according to the ministry.

Officials say the project will provide direct and indirect employment for approximately 5,000 people, creating jobs and supporting economic activity in the province.

The Herat cement project is considered one of Afghanistan’s major industrial projects. Its development has been anticipated for decades, with residents and officials repeatedly calling for the province’s cement resources to be developed locally.

The plant is located about 30 kilometers west of Herat city in Zinda Jan district.

The project is expected to increase domestic cement production and reduce reliance on imported cement once it becomes operational.

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