Lack of oversight for Afghan donations

WASHINGTON: Billions of dollars of reconstruction cash are flowing into Afghanistan with limited accounting of where and how the funds are being spent, a US government watchdog warned Wednesday.

At issue is the World Bank-administered Afghanistan Reconstruction Trust Fund (ARTF) that comprises 34 donor nations and agencies and has contributed more than $10 billion to Afghanistan’s reconstruction effort. The largest contributor is the United States, which has paid in more than $3 billion since 2002.

According to a new audit by the office of the Special Inspector General for Afghanistan Reconstruction, the World Bank is unable to accurately evaluate the impact of the funds, or monitor where the money goes.

“Billions of dollars of donor funds contributed to the ARTF are at risk due to continued limitations on, and lack of transparency into, monitoring and accounting of ARTF funding by the World Bank and the government of Afghanistan,” SIGAR said in a statement.

As an example, SIGAR said that when the World Bank approves reimbursements for Afghan workers, such as teachers, it does not require a third party monitor to check that the salary recipients actually exist — despite acknowledging a risk of “undetected ghost workers.”

The report also found that donors are unable to specify where they want funds to go, with the result that some monies are being spent in regions controlled by the Taliban or other insurgent groups.

The US Agency for International Development (USAID), which provides the US contribution to the reconstruction fund, told SIGAR it is “no longer preferencing funds by geographic location,” the report noted.