SIGAR claims $10.9m paid to Islamic Emirate institutions

KABUL (TOLOnews): John Sopko, the Special Inspector General for Afghanistan Reconstruction (SIGAR), said that from August 2021 to the present, $10.9 million of US funds have been paid to Islamic Emirate institutions.

According to SIGAR’s report, out of the 65 organizations, 38 responded to the questionnaire, revealing that since August 2021, $10.9 million of US aid has been paid to various departments of the Islamic Emirate for customs expenses, taxes, electricity bills, and other costs.

Economist, Siyar Quraishi told TOLOnews: “If these payments are from taxes that these organizations have agreed upon in contracts and must pay to the Ministry of Finance, or for electricity bills and other expenses related to the government, I think it is legal.”

However, the spokesperson for the Islamic Emirate rejected this SIGAR report, stating that the Ministry of Economy only oversees the activities of aid organizations and does not interfere in their expenditures.

The spokesperson for the Islamic Emirate said: “The Islamic Emirate has not used any foreign funds in any department, and international organizations have full authority over their work. The Islamic Emirate only provides general oversight through the Ministry of Economy and does not interfere in the internal affairs and expenditures of these organizations. This claim is incorrect.”

Abdul Latif Nazari, the Deputy Minister of Economy, told TOLOnews regarding US aid to Afghanistan: “The actual humanitarian and development aid from the United States to the people of Afghanistan amounts to only $2.8 billion. The remaining funds, which include administrative, ceremonial, luxury, relocation, and resettlement expenses for US allies, do not count as aid to the people of Afghanistan.”

Some economic experts say that taxing foreign organizations is important and that the increase in aid organizations and their activities benefits the national economy.

Abdul Zahoor Madbar, an economist, told TOLOnews: “To the extent that the activities of aid organizations in Afghanistan increase, it can positively impact the country’s economy and increase liquidity.”

Three weeks ago, the Special Inspector General for Afghanistan Reconstruction (SIGAR) reported in its quarterly report that since the return of the Islamic Emirate to power, over $17 billion has been provided to Afghanistan and Afghan refugees.

According to this report, in addition to considering the $3.5 billion of Afghanistan’s central bank assets held in a trust fund in Switzerland as part of the US aid, $2.8 billion has been allocated for humanitarian and development assistance in Afghanistan, and $10.89 billion has been spent on the evacuation, resettlement, and accommodation programs for Afghan refugees in the United States.