The Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR) disclosed that nearly $11 million in US funds were paid to the Islamic Emirate government (IEA) since August 2021. This payment encompassed taxes, fees, import duties, permits, licenses, and public utility services.
Disruption of Implementing Partner Activities
Kabul 24: SIGAR highlighted that the IEA disrupted implementing partner activities, attempting to divert aid and infiltrate NGOs. Such interference negatively impacted project implementation and diverted aid from its intended beneficiaries.
Breakdown of Payments
Out of the $10.9 million, $10.4 million went towards taxes, $346,839 for utilities, $176,596 for fees, and $9,215 for customs duties.
Incomplete Data and Potential Underreporting
SIGAR raised concerns that the $10.9 million paid by US implementing partners might be a fraction of the total US assistance funds provided to the IEA. Lack of data from UN agencies on subawardees’ payments contributes to potential underreporting.
Lack of Reporting Requirements
The UN, which received $1.6 billion in US funding for Afghan programs from October 2021 to September 2023, lacks reporting obligations on taxes, fees, duties, or utilities incurred on US funds. This absence of reporting mechanisms raises transparency concerns.
Consequences for Implementing Partners
SIGAR emphasized that failure to comply with the IEA government’s financial requirements could lead to significant consequences for implementing partners.
IEA Response
In response to SIGAR’s report, Zabihullah Mujahid, the spokesman of the Islamic Emirate, denied claims of interference in aid distribution processes and institutional operations.
