The U.S. watchdog overseeing assistance to Afghanistan has stated that the Taliban possesses no legal claim to billions in funding intended for the country due to their lack of recognition as the legitimate government and their status under international sanctions.
In a recent report, the Special Inspector General for Afghanistan Reconstruction urged a review of nearly $4 billion allocated for Afghanistan, suggesting that these funds may need to be returned under U.S. government control.
In 2022, the U.S. allocated $3.5 billion in Afghan central bank assets, previously frozen in America, to a fund based in Switzerland for the people of Afghanistan, which has since accrued nearly $4 billion.
While no direct payments have been made to benefit the Afghan populace, the fund is designed to assist in stabilizing their economy.
The report clarified that the Taliban is seeking these funds despite lacking any legal entitlement, as they are not recognized by the U.S. as the governing body of Afghanistan and are listed as a Specially Designated Global Terrorist organization, facing sanctions from the U.S. and the U.N.
This report follows the freeze of foreign aid by the previous administration for 90 days to assess alignment with policy objectives.
Since the U.S. withdrawal in 2021, approximately $3.71 billion has been spent in Afghanistan, with the majority allotted to U.N. agencies, while an additional $1.2 billion remains earmarked for potential use.
Despite U.S. humanitarian efforts which have helped avert famine amid economic turmoil, concerns persist regarding the Taliban’s actions, including the hostage-taking of Americans, suppression of women’s rights, media censorship, and the escalation of terrorist activities, particularly against former Afghan officials.
While the U.S. continues to be the largest donor to Afghanistan, the report highlights significant issues surrounding the transparency and distribution of funds, indicating that as aid moves further from its source, the oversight decreases.
