Business
Afghan parliament rejects next year’s budget

The Afghan parliament (Wolesi Jirga) on Wednesday rejected the new fiscal year’s budget due to “serious problems” which they said hinged on the disproportionate allocation of money including to emergency codes.
MPs stated the allocation of 13 billion AFN to one emergency kitty, without stipulating what the money will be spent on, and the allocation of a further two billion AFN to emergency CODE 91 and 92, where problematic.
This budget was approved by cabinet in November after adjustments were brought to the Public Finance and Expenditure Management Regulation; a draft plan of hydrocarbons regulation; draft statute of Da Afghanistan Breshna Sherkat (the Afghan power company); and the draft law on cadastre.
The cabinet also approved a request by the Ministry of Economy to approve a $3.4 million dollar aid package from USAID to fight coronavirus.
In addition, cabinet at the time approved a request by the ministries of finance and higher education to transfer $1.5 million, not spent by the counter-narcotics unit, to help fund the construction of the Helmand University.
This comes after Mir Rahman Rahmani, Speaker of the House said Tuesday the Wolesi Jirga was working on a plan to equalize civil servants’ pay “and will pursue it seriously until it is signed and implemented by the government to ensure equality,” he said.
Rahmani also instructed the Parliamentary Committee on Finance and Budget to take this into consideration in the new fiscal year’s budget.
Business
SIGAR urges tighter VIP control to stop cash smuggling through airport

Despite efforts by the Afghan government to reduce the flow of cash out of the country’s busiest international airport, significant control weaknesses continue to exist at Hamid Karzai International Airport in Kabul, the Special Inspector General for Afghanistan Reconstruction (SIGAR) reported Thursday.
Cash counting machines, which were funded by the US government, are not being used for the purposes intended and the only cash counting machine confirmed to be working is in the arrival entrance, instead of the departure area where strict cash controls are most needed to help prevent cash smuggling, SIGAR reported.
In addition, the machines lack connectivity to the Internet, which in turn prevents Afghan investigative authorities from tracking currency suspected of being laundered.
“The absence of fully functional and strategically positioned cash counting machines, and declaration forms in the VIP section along with the limited screening of VIP passengers – who are most likely to have large amounts of cash – severely limits the Afghan government’s ability to fully implement its anti-money laundering laws at the airport,” John F. Sopko, Special Inspector General for Afghanistan Reconstruction stated in the report.
To improve screening procedures at Hamid Karzai International Airport, SIGAR suggested the Afghan government take the following two actions:
1. Fully integrate cash counting machines with functioning Internet capability into the normal customs process both at the non-VIP and VIP terminals to better ensure that all declared and detected currency is counted, and serial numbers captured, for use by FinTRACA and its international partners.
2. Strengthen controls at the VIP terminal by requiring all VIP and VVIP passengers to fill out customs declaration forms, and have airport staff count any cash declared and send serial numbers to FinTRACA.
Sopko stated: “We provided a draft copy of this report to the [US] Department of Homeland Security (DHS) and Department of State (DOS) for comments on December 21, 2020, and the Afghan government for comments on December 22, 2020.
“DHS provided technical comments for incorporation in the report on January 8, 2021, which we
incorporated as appropriate. The Department of State informed SIGAR on January 8, 2021 that it does not have any technical comments.
“As of the publication of this report, the Afghan government did not provide any comment on the report nor on the matters for its consideration,” Sopko stated.
Business
Kandahar-Spin Boldak highway project nearing completion

Business
Parliament rejects draft budget for second time

Members of the Wolesi Jirga (Lower House of Parliament) have rejected the proposed budget for the new fiscal year 1400 for the second time.
MPs said the second draft budget is also unbalanced and still does not address the issue of equal pay for government employees.
MPs said they will not approve the budget until the money has been allocated appropriately and that demands of the parliament regarding the equalizing of salaries are taken into account.
They said that the government also added two more articles to the draft budget which were not acceptable to them.
MPs first rejected the draft budget on December 30 citing “serious problems” which they said hinged on the disproportionate allocation of money to projects and emergency codes.
The draft budget was approved by the cabinet in November following adjustments in the Public Finance and Expenditure Management Regulation, a draft plan of hydrocarbons regulation; draft statute of Da Afghanistan Breshna Sherkat (the Afghan power company); and the draft law on cadastre.
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