Poor Vetting Process Allows Taliban to Receive $239 Million in US Aid
Taliban Soliders
A Deep Dive into SIGAR’s Report on Mismanaged Funds
A recent report by the Special Inspector General for Afghanistan Reconstruction (SIGAR) reveals a startling oversight in the vetting processes of US aid distribution, which has inadvertently funneled millions into the hands of the Taliban. The report, SIGAR 24-22, highlights the grave consequences of inadequate oversight and the failure to enforce stringent monitoring mechanisms, which has allowed the Taliban to siphon off at least $239 million in US humanitarian and development aid since August 2021.
Following the collapse of the Afghan government and the Taliban’s return to power in August 2021, the US government pledged over $2.8 billion in aid to support the Afghan populace. The aid, channeled through various non-governmental organizations (NGOs) and public international organizations (PIOs), aimed to address critical humanitarian needs and foster development in the war-torn nation. However, both the former Ghani administration and the Taliban-controlled government imposed taxes, fees, duties, and utilities on these implementing partners, effectively diverting funds meant for Afghan civilians into their own coffers. This siphoning of resources raises significant concerns about the effectiveness of US aid in achieving its intended humanitarian goals while inadvertently bolstering a regime known for human rights abuses and repressive policies.
The SIGAR report underscores several critical findings. At least $10.9 million of US taxpayer money has been paid to the Taliban-controlled government through taxes, fees, duties, and utilities by 38 of the 65 implementing partners that responded to SIGAR’s questionnaire. This figure likely represents only a fraction of the total funds diverted, as many implementing partners did not respond or were unable to provide comprehensive data. The Taliban has exerted significant pressure on NGOs and other aid agencies, demanding direct involvement in program design and implementation, access to facilities and resources, and the hiring of Taliban-approved individuals. These demands have not only disrupted aid delivery but also allowed the Taliban to manipulate aid distribution for their own benefit. US agencies, including the Department of State and the US Agency for International Development, have failed to enforce comprehensive tax reporting requirements. State included the foreign tax reporting requirement in only 77 percent of applicable grants and cooperative agreements, while USAID included it in 93 percent of its awards. This lack of consistent reporting has resulted in significant underreporting of the taxes, fees, duties, and utilities paid to the Taliban-controlled government. The United Nations, a major recipient of US aid for Afghanistan, does not track the taxes, fees, duties, and utilities paid by its subawardees, despite being aware that such payments occur. From October 2021 to September 2023, the UN received $1.6 billion in US funding, approximately 63 percent of all US assistance for Afghanistan during that period.
The diversion of US aid to the Taliban-controlled government has severe implications. By allowing the Taliban to collect taxes and fees on aid-funded activities, the US inadvertently legitimizes their control over Afghanistan. This not only strengthens the Taliban’s grip on power but also undermines US foreign policy objectives. The Taliban’s repressive policies, particularly against women and girls, are well-documented. US aid indirectly supporting such a regime contradicts the core values and objectives of humanitarian assistance. Furthermore, the failure to adequately vet and monitor aid distribution damages the credibility of US agencies and undermines the trust of taxpayers who expect their contributions to support genuine humanitarian efforts, not fund terrorist-affiliated entities.
In response to the findings, SIGAR has issued several recommendations to improve oversight and ensure that US funds are not misused. State and USAID should expand foreign tax reporting requirements to all US award agreements in Afghanistan, including those with PIOs, and cover all types of taxes, fees, duties, and utilities. Both agencies must take immediate action to ensure that responsible officials include foreign tax reporting requirements in all applicable award agreements and collect the necessary reports from implementing partners. Implementing partners should be directed to comply with the Office of Foreign Assets Control recordkeeping requirements, maintaining detailed records of all transactions for at least five years. US agencies need to establish more robust monitoring mechanisms to track the flow of aid funds and prevent their diversion to illegitimate entities.
The SIGAR 24-22 report highlights a critical flaw in the US aid distribution process that has allowed the Taliban to benefit from funds intended to alleviate the suffering of the Afghan people. Immediate and decisive action is required to rectify these oversights, enforce stringent reporting and monitoring requirements, and ensure that US aid serves its intended humanitarian purpose without inadvertently supporting a regime with a history of human rights abuses and terrorist affiliations. By implementing SIGAR’s recommendations, the US can strengthen its aid distribution framework, safeguard taxpayer dollars, and uphold its commitment to supporting the Afghan people in their time of need. This report serves as a wake-up call for policymakers to re-evaluate and enhance the mechanisms in place to ensure aid is used as intended and prevent similar issues in future aid efforts. The findings and recommendations must be acted upon urgently to prevent further misuse of aid funds and to restore confidence in the US government’s ability to manage and distribute foreign aid effectively. The focus must now be on stringent enforcement of the outlined recommendations to ensure accountability and transparency in aid distribution while protecting the interests of the Afghan people and the integrity of US foreign aid initiatives. With these measures in place, the US can work towards a more effective and ethical distribution of aid, ensuring that every dollar reaches its intended recipient and supports the values of democracy and human rights.
About The Author
You should have run this by someone familiar with the international aid business, and someone familiar with the situation in Afghanistan before you freaked out. As with all financial activity, development aid always results in money changing hands, and that always leads to taxes, duties and other payments to the governments involved. You pay an aid worker and that results in income tax. You take a hurt deminer to a government run Afghan hospital, and you pay the government
You needn’t be as outraged about the U.S. providing development aid to Afghanistan either. We are at peace with the Taliban, and Afghanistan is at peace. The bloodbath and ethnic civil war that everyone expected never happened. The Taliban declared a general amnesty to their former enemies and have largely been good to their word. They aren’t exporting international terrorism. They are working hard to hunt down Islamic State in Afghanistan – sometimes in cooperation with the CIA – and have been very successful at it. They have eliminated 95% of poppy production and reestablished law and order.
Providing aid to Afghanistan is in our interests. It has prevented our misadventure there from being capped with a famine, waves of refugees leaving the country, and regional instability.
At this point, you’re thinking “tell that to the women of Afghanistan.” They have been repressed by the Taliban, and most of them hate that – but they are definitely glad that we are gone and the war has ended and that we are sending aid.