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SIGAR report says no specific controls in place to ensure Afghan Fund is not misused

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In response to a request by the US House Foreign Affairs Committee for information on the oversight and management of the Afghan Fund, which holds $3.5 billion of Afghanistan’s frozen funds, the US Special Inspector General for Afghanistan Reconstruction (SIGAR) said there are currently no specific controls in place to ensure funds are not diverted to or misused by the Islamic Emirate.

SIGAR chief John F. Sopko stated that as of September last year, the Fund had made no disbursements for activities intended to benefit the Afghan people. The US “Treasury and State are not currently willing to support a return of funds to DAB (Afghanistan’s central bank),” Sopko’s report read.

SIGAR also stated “the Taliban (IEA) are not part of the Afghan Fund, and robust safeguards have been put in place to prevent [Fund monies] from being used for illicit activity.”

However, the report stated that “the fund’s articles of association do not explicitly refer to the Taliban, and there are currently no specific controls in place to ensure funds are not diverted to or misused by the Taliban.”

SIGAR also stated that the US Treasury has reported that “a compliance program to prevent funds from being provided to sanctioned or criminal individuals, including members of the Taliban, was under development.”

The report also stated that neither the US Treasury nor State Department was currently “willing to support a return of funds to DAB.”

The report however pointed out that one of the Fund’s trustees is also a member of DAB’s governing body, the Supreme Council. “It is not clear whether this constitutes a conflict of interest in the form of competing fiduciary responsibilities. It is also unclear who determines whether a conflict of interest exists or how it is defined,” read the report.

In addition, Sopko reported that the “State was unaware that one of the individuals it selected to be a fiduciary of DAB’s assets was fired from a previous position for misrepresenting his credentials, raising questions about the adequacy of State’s vetting process through which this individual became a co-fiduciary of $3.5 billion of DAB assets.”

The Afghan Fund is a Swiss-based foundation capitalized with $3.5 billion of the approximately $7 billion of Afghan central bank assets deposited in US financial institutions after the former Afghan government collapsed in August 2021.

The Islamic Emirate has repeatedly asked the international community to unfreeze Afghanistan’s foreign exchange reserves.

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Afghan delegation to participate in Iran’s international expo

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Iranian officials have announced that a 200-member delegation, comprising Afghan government officials and private sector representatives, will attend the 7th International Exhibition of Iran’s Export Capabilities.

Officials from the Islamic Emirate, meanwhile, consider the presence of Afghan traders at this exhibition to be significant, stating that showcasing domestic products will help promote and market Afghan goods.

Abdul Latif Nazari, Deputy Minister of Economy, said: “Economic cooperation between the private and public sectors of Afghanistan and Iran is in the interest of both countries.”

“The visit of the high-ranking delegation of the Islamic Emirate to Iran can play a vital role in expanding economic and trade exchanges between the two countries,” he added.

In addition, Afghanistan Chamber of Commerce and Investment (ACCI) said that 80 booths have been allocated to Afghan traders at the exhibition, where agricultural products, precious stones, and other Afghan goods will be showcased.

Several experts also stated that Afghanistan’s participation in regional and international exhibitions is important and can lead to stronger economic ties with other countries.

This comes as Iran remains one of Afghanistan’s key economic partners, with annual trade volume between the two nations exceeding $3 billion.

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14 kms of TAPI pipeline laid inside Afghanistan, says project manager

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Baganch Abdullayev, the General Director of the TAPI project in Afghanistan, on Thursday met with Noor Ahmad Islamjar, the governor of Herat, for a report back on progress made in accelerating the pipeline-laying process of the Turkmenistan-Afghanistan-Pakistan-India project in the province.

The Herat governor’s press office said in a statement that Abdullayev shared a brief report on the progress of the TAPI project with Islamjar.

According to the statement, Abdullayev said so far 14 kms of pipeline has been laid while an additional 24 kms of ground has been levelled for the pipeline.

During the meeting, the governor of Herat also welcomed the efforts of TAPI project officials in advancing the work and assured the project head of the local administration’s full support in facilitating the swift progress of the project.

Once completed, TAPI pipeline will transport natural gas from the Galkynysh Gas Field in Turkmenistan through Afghanistan into Pakistan and then to India.

The pipeline was completed on the Turkmenistan side in 2024, and the project is currently expanding southbound in Herat Province of Afghanistan.

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WFP appeals for $25 million to help support Afghan returnees amid humanitarian crisis

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The World Food Programme (WFP) this week issued an urgent appeal for $25 million to address the escalating needs of Afghan refugees being expelled from Pakistan.

According to the WFP, thousands of Afghan families are crossing into Afghanistan from Pakistan every day and face serious food insecurity.

The organization also stated that millions in Afghanistan are grappling with severe hunger, and immediate aid of $25 million is needed to assist returnees.

On Wednesday, April 23, in a video shared on X, WFP’s head in Afghanistan, Mutinta Chimuka, visited the Torkham border crossing with Pakistan. During her visit, she highlighted the challenges faced by returnees, many of whom have spent their entire lives in Pakistan and are unfamiliar with Afghanistan.

Chimuka pointed out that many returnees have no income, employment, food, or shelter.

The WFP stressed that thousands of families are being forced to leave Pakistan, while 15 million people in Afghanistan are uncertain where their next meal will come from. The situation has become dire, with basic needs going unmet for a large portion of the population, the WFP said.

Chimuka warned that current aid efforts are insufficient to support the returnees, and new financial resources are urgently needed to address their needs by the end of the year.

Meanwhile, the pace of deportations and expulsions of Afghan migrants from neighboring countries, particularly Pakistan, continues to increase. The Pakistani Ministry of Interior reported that over 100,000 Afghan migrants have been returned since April 1.

The International Committee of the Red Cross (ICRC) has also raised alarm, noting that while thousands of refugees return every week, there are millions of Afghans who are currently facing poverty, homelessness, and difficult living conditions.

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