SIGAR claims almost $11 million in US funds paid to IEA government

The Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR) said in its latest audit report that US government implementing partners paid at least $10.9 million to the Islamic Emirate government in the form of taxes, fees, import duties, or for the receipt of permits, licenses, or public utility services since August 2021.

SIGAR also claimed the IEA “disrupted implementing partner activities through various means, including attempts to divert aid or infiltrate nongovernmental organizations (NGOs) and interfere with their activities, which in some cases, negatively impacted the implementation of activities and diverted aid from the intended beneficiaries.”

SIGAR stated that of the $10.9 million, $10.4 million was spent on taxes; $346,839 on payments for utilities; $176,596 on fees; and $9,215 on customs duties.

SIGAR also found that the $10.9 million paid by 38 US Department of State (State), US Agency for International Development (USAID), and US Agency for Global Media (USAGM) implementing partners is likely only a fraction of the total amount of US assistance funds provided to the IEA in taxes, fees, duties, and utilities.

SIGAR reported this is because “UN agencies receiving US funds did not collect data or provide relevant information about their subawardees’ payments.”

According to SIGAR, from October 2021 through September 2023, the UN received $1.6 billion in US funding for programing in Afghanistan, approximately 63% of all US assistance funding for Afghanistan during that period.

“UN agreements with State and USAID do not include any requirements to annually report on taxes, fees, duties, or utilities incurred on US funds provided for activities in Afghanistan,” SIGAR stated.

SIGAR noted however that “implementing partners can experience significant consequences if they fail to pay the taxes, fees, duties, and utilities required by the Taliban-controlled (IEA) government of Afghanistan.”

However, Zabihullah Mujahid, the spokesman of the Islamic Emirate, said in response to SIGAR’s latest report that Afghanistan’s caretaker government does not interfere in the process of distributing aid and the work of institutions.