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Audit fails to win U.S. backing for release of Afghan central-bank funds

A U.S. funded audit of Afghanistan’s Islamic Emirate-run central bank has failed to win Washington’s backing for a return of bank assets from a $3.5 billion Swiss-based trust fund, said two U.S. officials and a former U.S. official, a move that would help ease the country’s financial crisis, Reuters reported.
The audit has not changed the U.S. Treasury’s view that the bank must make reforms before the department will support disbursements from the Afghan Fund to Da Afghanistan Bank (DAB), said a U.S. Treasury official on condition of anonymity.
The Swiss-based Afghan Fund was set up last year with half of about $7 billion in central bank funds that were frozen in the Federal Reserve Bank of New York in August 2021 after IEA took control of the country as the last foreign forces withdrew following two decades of war.
DAB must show that it is free “from political influence and interference,” said the Treasury official, referring to the need for professional bankers to replace the three IEA officials who oversee the bank and are under U.S. and U.N. sanctions.
It also must prove that it has “adequate” controls against money-laundering and terrorism financing and install a “reputable” independent monitor, said the Treasury official.
“Our assessment of DAB remains unchanged,” said one of the U.S. officials. Reuters quoted the two officials and the former U.S. official, who has knowledge of the U.S. position, spoke on condition of anonymity because of the confidentiality of the matter.
The IEA administration spokesman and a spokesperson for the Afghan central bank did not respond to request for comment.
Concerns in Washington and other capitals about the bank’s leadership and anti-money laundering safeguards are at the heart of a standoff over the IEA’s demand for the return of DAB cash frozen in the United States and other countries after the Islamic Emirate return.
Because the four-member board that oversees the trust fund must approve disbursements unanimously, the support of its U.S. government representative is essential.
Afghanistan remains mired in grave humanitarian and economic crises that some experts say has been worsened by U.S. restrictions hampering DAB’s ability to perform key central bank functions, such as ensuring stable exchange rates and prices, read the report.
The audit, funded by the U.S. Agency for International Development (USAID) and conducted by an outside contractor, examined DAB’s controls against money laundering and terrorism financing, and its banking oversight and payments departments, according to an April report by the U.S. Special Inspector General for Afghanistan Reconstruction (SIGAR).
The findings have not been made public, Reuters reported.
Calling the audit, a “preliminary assessment,” the Treasury official said its “limitations” suggested that “more comprehensive third-party assessment efforts may be needed.”
Shah Mehrabi, an Afghan-American economics professor who is on DAB’s governing board and co-chairs the Afghan Fund board, said the audit – which he has not seen – was completed in March and currently is with the State Department.
The State Department declined to comment.
Mehrabi and his co-chair, Anwar ul-Haq Ahady, a former DAB governor and former finance minister, told Reuters that they would consider the findings once they are available.
Mehrabi said use of the Afghan Fund’s assets should focus on stabilizing prices and ensuring banks had enough liquidity, as the entire financial system was at risk from declining foreign donor funds to Afghanistan.
The other $3.5 billion in DAB assets frozen in US is being sought in lawsuits against the IEA brought by families of victims of the Sept. 11, 2001, attacks on the United States. A U.S. judge in February ruled against the plaintiffs who are appealing.
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Dozens of needy families in Ghazni get much needed food aid from Bayat Foundation

In continuation of Ramadan aid efforts in Afghanistan, Bayat Foundation this week distributed food aid packages to dozens of needy families in central Ghazni province.
Officials from Bayat Foundation stated that these donations were distributed to deserving families after a thorough assessment was carried out.
The foundation distributed food aid that included essential items such as flour, rice, and cooking oil.
Families who received the aid welcomed the initiative and thanked the foundation. They also appealed to other organizations to help the needy during the holy month of Ramadan.
Bayat Foundation has provided significant aid to the needy residents of this province in the past.
The foundation has also distributed substantial amounts of food aid to several other provinces so far this Ramadan.
Bayat Foundation however has also been at the forefront of providing humanitarian assistance during disasters, such as earthquakes and floods. In addition, it has rolled out numerous projects over the years, such as the project to provide clean drinking water in various provinces. It has also helped build mosques, schools and healthcare centers.
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UN warns over 4 million Afghan girls will be deprived of education by 2030 if ban continues

United Nations spokesperson Stéphane Dujarric warned Monday that over four million Afghan girls could be deprived of an education by 2030 if the Islamic Emirate of Afghanistan (IEA) continues with its ban.
Addressing a press conference in New York Dujarric said UNICEF has reported that another 400,000 girls are being deprived of a secondary school education in this new academic year, which started this week.
“UNICEF tells us that in Afghanistan the new school year started today but an additional 400,000 girls are being deprived of their right to education bringing the total number of girls without access to this essential right to 2.2 million.
“That’s 2.2 million girls being deprived of education today. [This] marks three years since the start of the ban on girls secondary education. UNICEF says that if this ban persists until 2030, which we hope it won’t, over four million girls will have been deprived of their right to education beyond primary schooling.”
He went on to say “Afghanistan cannot leave half of its population behind despite the ban.”
Dujarric pointed out that UNICEF has provided access to education to some 445,000 children through community-based learning, 64% of whom are girls. UNICEF is also empowering female teachers to ensure that girls have positive role models,” he said.
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Norwegian Refugee Council cuts back on essential humanitarian services in Afghanistan

The Norwegian Refugee Council (NRC) said Tuesday it is forced to cut back on services in Afghanistan due to the cuts in aid by Donald Trump, the president of the United States.
In a statement issued on Tuesday, Suze van Meegen, N RC’s interim country director in Afghanistan said: “At a time when men, women and children in Afghanistan urgently need international funding and support, NRC and our partners are facing drastic funding cuts from key donors.
“This situation leaves us with no choice but to make untenable reductions in our services, further jeopardising vital lifelines for the most vulnerable and impoverished communities.”
She said like many humanitarian organisations, NRC Afghanistan has been forced to close offices in several provinces and lay off many dedicated and professional humanitarian staff, with a particularly adverse impact on female aid workers.
“These funding cuts have far-reaching consequences. They extend from communities that have lost access to basic assistance to thousands of experienced Afghan staff that have lost their livelihoods,” van Meegen said.
The NRC warned that wide-ranging cuts in aid will lead to a diminishing footprint of humanitarian agencies in Afghanistan and leave the lives of millions on an increasingly dangerous trajectory, affecting women and children most adversely
In January, Trump suspended ongoing aid projects which forced the majority of US-funded humanitarian work to be put on hold or end. Other donor governments – including Belgium, France, Germany, the Netherlands, Belgium Sweden, Switzerland and the United Kingdom – have since also announced that their global aid budgets will be reduced in the coming years, foreshadowing a significant drop in the assistance available to the world’s most vulnerable.
“This is the most challenging situation that NRC Afghanistan has faced in its 22 years in the country. However, I want to emphasise that NRC Afghanistan is not shutting down its operations. We remain committed to staying in Afghanistan to support displaced women, men and children and to ensure that communities affected by decades of war are not left behind,” said van Meegen.
The NRC said that since January, it has been forced to close two of its community resource centres, with two more at risk without suitable funding in the coming month.
The centres have been crucial in supporting returning and internally displaced Afghans, providing assistance with housing, food, legal assistance and referrals to healthcare providers, particularly for Afghan women who are heading their families and depend on female-to-female aid.
The loss of female aid workers across the country is further restricting women and children’s access to essential services, reinforcing the conditions that prevent them from enjoying their basic rights, the NRC said.
Van Meegen said: “To prevent catastrophic damage in Afghanistan, the international community needs to step up and commit to supporting a population that has faced decades of war and neglect.”
The NRC has been present in Afghanistan since 2003, delivering key services with the support of its donors, directly delivering assistance to people in need.
This includes providing shelter and protection services to displaced Afghans and those returning from neighbouring countries.
According to the UN’s latest findings, almost 22.3 million Afghans need humanitarian assistance and 1 in 3 Afghans (more than 14 million people) do not know where their next meal will come from.
In 2024, the United States contributed just under $742 million to Afghanistan’s $1.72 billion Humanitarian Response Plan – this equalled 43.4%.
The 2025 humanitarian response plan for Afghanistan is currently just 13.3%, according to UNOCHA.
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