CIVIL - MILITARY FUSION CEN TRE

Afghanistan Review Week 22 01 June 2011 Comprehensive Information on Complex Crises

INSIDE THIS ISSUE This document provides a weekly overview of developments in from 25 May—31 May 2011, with hyper-links to source material highlighted in blue and underlined in the text. For more information Economic Development on the topics below or other issues pertaining to events in Afghanistan, feel free to contact the members of Governance & Rule of Law the Afghanistan Team, or visit our website at www.cimicweb.org. Humanitarian Affairs Infrastructure Security & Force Protection Socio-Cultural Development Economic Development Steven A. Zyck ► [email protected]

ews regarding Bank, the crisis- cials deemed most responsible for lax moni- ABOUT THE CFC stricken Afghan financial institution, toring. However, Abdul Qadir Fitrat, the dominated headlines over the past Chairman of DAB, suggested that the Central N The Civil-Military Fusion Centre week. The inciting incident was the finalisa- Bank is being blamed in order to deflect atten- (CFC) is an Information and tion of the work of a commission appointed by tion and criticism from Kabul Bank‟s politi- Knowledge Management Afghan President to investigate cally-connected executives, shareholders and organisation focused on the events which led to Kabul Bank‟s near borrowers, according to the New York Times. improving civil-military interaction, collapse late last year, according to the New York Times. The decision to release (or not to The commission‟s work has also drawn atten- facilitating information sharing and tion to Mahmoud Karzai, the Afghan presi- enhancing situational awareness release) the commission‟s report will be made by President Karzai, says the Associated Press dent‟s brother, who was formerly the third- through the CimicWeb portal. (AP). President Karzai will also personally largest shareholder in Kabul Bank, according to Emirates 24/7. The presidential commission CFC products are developed with decide who, if anyone, will be prosecuted in connection with alleged wrongdoing at Kabul indicated that Mahmoud Karzai had been open-source information from a Bank. (For background information regarding cleared of any wrongdoing in connection with wide variety of organisations and the situation at Kabul Bank, see the CFC Af- Kabul Bank. The New York Times, however, media sources. ghanistan Report, “The Kabul Bank Crisis”, quotes DAB officials as saying that Mahmoud September 2010.) Karzai still owes USD 22 million in out- The CFC is represented in Kabul by standing loans. Other Afghan notables are also a Forward Military Liaison Officer, The commission found that Kabul Bank had reportedly highlighted in the commission‟s Lt. Col. Gary Evans, who is made USD 925 million in “questionable” report, says the AP. The commission‟s chair- embedded within ISAF. loans, though this figure includes USD 338 man announced that many members of the million in accumulated interest, reports Afghan parliament and several government By design, CFC products or links to Reuters. Loans worth USD 467 million were ministers were among the 207 individuals who independently produced articles do reportedly made without any collateral or had received “undocumented” loans from Ka- not necessarily represent the documentation. Less than 10% of the bank‟s bul Bank. loans were made through a typical, docu- opinions, views or official position The successful resolution of the Kabul Bank of any other organisation. mented and collateralised lending process and were being repaid by the borrowers. Accord- crisis, including the prosecution of those re- ing to Reuters, the Afghan government ex- sponsible, is considered important in ensuring . CONTACT THE CFC pects USD 347 million, or slightly more than a that foreign donors feel confident in providing development assistance to the Afghan govern- For further information, contact: third of Kabul Bank‟s outstanding loans, to be ment. The Washington Post first reported in repaid. Afghanistan Team Manager October 2010 that the International Monetary Erin Foster The commission allocated a significant Fund (IMF) would delay a USD 120 million [email protected] amount of blame for the Kabul Bank crisis credit programme for Afghanistan until the

upon Afghanistan‟s Central Bank, known as integrity of the Afghan banking system was The Afghanistan Team Da Afghanistan Bank (DAB), according to the improved. The United Nations and UK De- [email protected] AP. Commissioners concluded that DAB partment for International Development should have discovered Kabul Bank‟s irregu- (DFID) have indicated that they are withhold- lar lending practices years sooner. Tolo News ing USD 70 million and USD 137.6 million, stated that the commission was planning on respectively, until the IMF establishes a new urging President Karzai to indict DAB offi- programme for Afghanistan. In an unrelated story, Tolo News highlighted that officials from by the Integrated Regional Information Network (IRIN), which Afghanistan's Ministry of Commerce and Industries (MoCI) cites research showing that local populations in developing have indicated that they are taking steps to try and lower fuel countries tend to blame government officials – rather than prices. Among other steps, MoCI officials are planning to ask global market forces – when commodity prices rise. According the Ministry of Finance (MoF) to reduce the Afghan govern- to a Reuters article earlier this year, global increases in fuel ment's taxes on fuel imports and to speak with traders in order prices have led some analysts and policymakers to fear an out- to explore what they could do to bring fuel prices down. The break of instability and potentially civil war in some develop- importance of managing fuel prices was highlighted in a report ing nations.

Governance & Rule of Law Amber Ramsey ► [email protected]

n the occasion of the International Day of United Na- In related news, an article in the Christian Science Monitor tions Peacekeepers, UN Secretary-General Ban Ki- indicates that the success of US foreign policy and the fight O moon lauded the work of UN peacekeepers worldwide against corruption are linked. The article suggests that by im- for their efforts to promote peace and stability. The theme for plementing country reports on corruption that expose the this year was upholding rule of law, which Ban Ki-moon de- names of corrupt individuals, the US could increase transpar- scribed as essential to successful peacekeeping operations. He ency and encourage change. Transparency International‟s 2010 added that much of the focus for the coming year will be on Corruption Perceptions Index reveals a correlation between increasing confidence in police, justice systems and correc- places where US troops are fighting, or where the US faces tional services by training police to never abuse their power, serious nuclear threats and where corruption perceptions are at supporting the proper functioning of courts and working for the highest. Afghanistan ranks 176 out of 178 countries listed humane detention conditions. Correspondingly, the UN re- in the index, with only Myanmar and Somalia being consid- leased the Department of Peacekeeping Operations (DPKO) ered more corrupt. Additionally, they believe that greater Justice Update, which discusses the creation and success of the transparency would highlight waste, capital flight and flows of Provincial Justice Coordination Mechanism (PJCM) in Af- „black money‟. The article further claims more detailed infor- ghanistan, among other things. According to the update, the mation being provided by the US on corruption would support PJCM is now widely seen by national authorities and interna- people worldwide in demanding accountability from their gov- tional stakeholders as the entity best suited to facilitate provin- ernments. In closing the authors argue that “[f]ighting corrup- cial justice coordination. The PJCM was recognized as effec- tion must become a priority for US foreign policy. Given its tively working to expand rule of law beyond Kabul and im- corrosive impact on American interests and on international prove the delivery of justice assistance in the provinces. The security and development, foreign corruption should no longer UN also notes that the PJCM has assisted be swept under the rug to preserve diplo- in creating a more “constructive, collabo- matic nicety”. Corruption has long been rative and strategic reform process for “The 2010 Corruption Perception Index a point of contention between US offi- the justice sector” which has helped lead cials and Afghan President Hamid Kar- to “improved donor cooperation, consul- reveals a striking correlation between zai, who has faced heavy criticism for his tation and transparency at both the cen- failure to cut down on rampant govern- tral and provincial level”. places where US troops are fighting” ment graft.

A recent article by the Associated Press The Peace Research Institute Oslo highlights the difficulty experienced by (PRIO) has released its latest research the Afghan government when attempting to spend the millions paper entitled, “Achieving Durable Peace: Afghan Perspec- of dollars in donor funds it receives from the international tives on a Peace Process”, that is part of an ongoing project community each year. Afghan officials argue that the govern- attempting to identify and clarify through research and dia- ment‟s lack of spending is related to the unrealistic restrictions logue the issues and options available for Afghanistan to move and constraints tied to each donation. Additionally, they have towards a durable and sustainable peace. The first phase of the difficulty spending funds within the defined parameters be- project sought to investigate Afghan stakeholder views of the cause the money arrives late or not at all. Despite these com- conflict and issues confronting a peace process by conducting plaints, donors contend that as long as there is the chance 122 interviews with Afghan leaders and individuals in the po- funds may be misused, they must enforce tight restrictions. In litical, military, economic, and social arenas. Some of the ma- the past, the Afghan government has experienced a variety of jor findings outlined in the paper include: (i) understandings of difficulties when it comes to spending development assistance, the conflict; (ii) substantive dimensions of the peace process; among them, duplicate awards being issued for the same pro- (iii) the limitations of current peace plans; and (iv) reaching a jects, setting unrealistic timetables and inaccurate accounting, settlement. The second phase of the project will involve a says AP. However, despite a renewed commitment to channel more detailed analysis of the issues identified by Afghan more funds through the Afghan government pledged by the stakeholders and draw on international experience to identify international community at the Kabul Conference in 2010, specific options for addressing them. only a small portion of the money is being spent on much needed public services and infrastructure development.

Page 2 01 June 2011 Humanitarian Affairs Erin Foster ► [email protected]

ood insecurity in the majority of Afghanistan may reach rently has a National Food Security and Agriculture Cluster which provides monthly working group summaries. stressed or crises levels in 2011, according to the newly- F released “Afghanistan Food Security Outlook: April to The International Committee of the Red Cross (ICRC) and the September 2011”. The country received Afghan Red Crescent Society (ARCS) below average levels of precipitation in have reported the displacement of nearly late 2010 and the added late onset and “The role of global clusters is to 12,000 individuals from 20 villages in localised occurrence of spring rains has Faryab province due to conflict. Both or- resulted in wheat crop losses. The Famine strengthen preparedness and build ganisations have sought safe passage from Early Warning Systems Network (FEWS all parties to the conflict to undertake a

NET) forecasts a poor harvest through capacity of the aid response” needs assessment and conduct emergency July and the early onset of the lean season Graham Farmer, food aid and non-food distribution to af- from September of this year. In contrast, fected communities. According to an the eastern provinces of Kunar, Nan- IRIN Food Security Cluster ICRC news release, some families are liv- garhar, Laghman, Parwan and Kapisa are ing out in the open without access to water expected to experience normal to above- and medical care and continued military normal harvest rates. The Food Security operations are making the provision of assistance difficult for Outlook is a joint report prepared by FEWS NET and the aid workers. Further displacement was reported in other parts World Food Programme (WFP) based upon food security as- of Afghanistan, with ICRC assisting 40% more people sessments undertaken in April and May 2011. (51,000) displaced from their homes due to conflict between

In related news, the Integrated Regional Information Networks January and April 2011 compared to the same period in 2010. (IRIN) reports that the humanitarian community has launched Meanwhile in Pakistan, officials have given humanitarian a new global Food Security Cluster. The „Cluster Approach‟ agencies working in North Waziristan two weeks to prepare was introduced in 2005 to promote better communication and for the potential displacement of some 365,000 people as a organisation between United Nations Agencies, international result of a planned military operation, says Reuters. The article organisations, non-governmental organisations (NGOs) and notes that the intended target of the operation may be the Af- ghanistan-associated Haqqani Network. other national service providers based upon eleven distinct sectors. Co-led by the UN Food and Agricultural Organization Aid workers are responding to a „concentrated epidemic‟ of (FAO) and WFP, the new global Food Security Cluster com- HIV due to the increasing number of injecting drug users in bines both food aid and agricultural responses to meet the short Afghanistan, reports The National. According to the article, and long-term needs of food insecure communities. The cluster there has been a 140% increase in drug users since 2005 with coordinator, Graham Farmer, explained to IRIN that “the role more than a million reported by the UN and 120,000 of those of global clusters is to strengthen preparedness and build ca- addicted to heroin. An estimated 700 cases of HIV have been pacity of the aid response”, adding that it is the responsibility recorded by the Ministry of Public Health (MoPH) nationwide of national clusters to “make sure response to a crisis is effec- with as many as 3,000 estimated. There is also an infection tive and that all NGOs are on the same page”. The first meet- rate of 7% among injecting drug users nationally with up to ing of the Food Security Cluster met from 30-31 May where 18% reported in Herat city alone. members reportedly sought guidance from national and local clusters on establishing their support role. Afghanistan cur-

Infrastructure Rainer Gonzalez ► [email protected]

new paper, entitled “Overview of Transportation in turned to Afghanistan, which has resulted in rapid and un- Kabul City, Afghanistan”, written by the Department planned growth for urban areas. Kabul has recently reached a of Civil and Environmental Engineering at the Uni- population of 3.7 million with growth rates that exceeded the A versity of Missouri, was released on 30 May. The planned 10%. An estimated 80% of Kabul‟s population lives in paper comprehensively analyzes the current state of Kabul‟s informal settlements and, with new inhabitants settling in the transportation system and presents challenges and opportuni- periphery, the city has developed a highly decentralised urban ties for improvement in the city of Kabul. The document is pattern. Also, the rough topography and the physical con- particularly timely as a background paper because the World straints to expand the city centre have further challenged the Bank, the Asian Development Bank and the United States mobility of residents, particularly for those commuting from Agency for International Development (USAID) are drafting the peripheral neighbourhoods into the downtown. Additional and implementing various interventions targeting the recon- significant factors that serve to aggravate the problem include struction and rehabilitation of Kabul‟s urban transport infra- the fact that the 60% of the paved roads in the city are severely structure. Since 2002 more than 5 million Afghans have re- damaged and the transport capacity is greatly reduced due to

Page 3 01 June 2011 reported misuse by pedestrians and vendors. and storage of transportation data procedures should be estab- lished to plan ongoing and future interventions more effec- The authors of the above transportation report provided a se- tively, according to the authors. ries of recommendations based upon extensive research. First, the authors highlight the total lack of systematic transportation In other news, President Karzai travelled to Ashgabat, the planning due to limited resources and a lack of official guide- capital of Turkmenistan, to meet with the Turkmen President lines. More innovative policies and tools are needed to coordi- Gurbanguly Berdimuhamedov and sign several agreements nate systematic and strategic development planning including spanning several sectors, including infrastructure, reports The land expedition processes and zone and building regulations. Daily Outlook of Afghanistan. Turkmenistan plans to increase Second, the borrowing of international manuals such as the power exports to Afghanistan which could eventually meet up American Association of State Highway and Transportation to 70% of Afghanistan‟s electricity needs. In addition, both Officials (AASHTO) “Guide for the Design of Pavement leaders presented a memorandum of understanding to build a Structures” or the “Manual of Uniform Traffic Control De- 150 km-long railway linking Turkmenistan with the city of vices” is acceptable as a temporary solution, nonetheless Faryab, in Faryab province. manuals and procedures that take into account local customs, practices and availability of resources should progressively be Finally, the Afghan Minister of Mines, Waheedullah Shahrani, introduced. Third, stronger partnerships between the Ministry has announced that the number of troops needed to secure the of Transport and Civil Aviation and private stakeholders TAPI gas pipeline has risen from the 7,000 estimated in previ- should be established in order to boost mobility for less profit- ous reports to 12,000. As planned, the Afghan portion of the able and accessible areas. Finally, better systematic collection TAPI will have a total length of 735 km.

Security & Force Protection Kathleen Hughes ► [email protected]

everal attacks received media attention this week. Ultimately, fourteen ANA members at an elite army com- Firstly, Gulab Mangal, the governor of Helmand prov- mando unit in the north were charged in the theft of approxi- S ince, was reportedly the target of an assassination at- mately USD 22,000. Concerns were raised for two reasons: (i) tempt on 24 May, according to Reuters. Mangal was travelling a pay system designed specifically to avoid this type of fraud by motorcade from Lashkar Gah to Sangin district when gun- had been instituted; and (ii) elite ANA units were responsible men opened fire. Mangal‟s spokesman, Dawood Ahmadi, said for the theft. As stated in the article, the incident reminds all that the trip was intended to demonstrate how security im- interested parties that “turning the Afghan army into a profes- provements in the region allow public officials to travel by sional fighting force will likely stretch far beyond the NATO road versus helicopter Reuters cites Ahmadi saying “we were allies‟ timeline to hand over control of security to the Afghan ambushed but the governor does not regret [making the trip] government by 2014”. and he plans to travel more by road”. Last week‟s attack on Pakistan Naval Station Mehran, located A second high-profile attack took place in Takhar province on near Karachi, has brought into question Pakistan‟s ability to 28 May, reports BBC. The attack took place at the provincial conduct counter-terror surveillance, according to Reuters. On governor‟s compound, where high-ranking officials were 22 and 23 May between four and six attackers stormed the meeting to discuss security issues in the region. At least six base, killing 10 people, wounding 20 more and destroying two people were killed in the attack, including Shah Jahan Nuri, P-3C Orion patrol aircraft. The P-3C Orion is used in both the provincial police chief, and Gen Mohammad Daud Daud a Pakistan‟s maritime security efforts and in supporting opera- key powerbroker in the north. Two German soldiers were also tions against the Taliban in Afghanistan. The incident has killed. The commander of NATO‟s International Security As- sparked international concern over Pakistan‟s ability to protect sistance Force (ISAF) in the north, Major General Markus its nuclear sites, reports the Associated Press (AP). The article Kneip, and the provincial governor, Abdul Jabar Taqwa, were states that although Western governments agree there is mini- also injured in the attack. The Los Angeles Times reported that, mal chance of militants successfully stealing nuclear material, on 30 May, insurgents carried out twin attacks in Herat prov- the attack on the naval base shows there is a possibility that ince. An explosion in downtown Herat city and a car bomb militants could try to do so. Additionally, the AP suggests that outside the gates of a NATO compound resulted in the death a serious breach of security at military sites in Pakistan could of at least four civilians and the injury of several Italian sol- lead to unilateral action by the United States, which would diers. The article also notes that areas of Afghanistan previ- further strain the US-Pakistan relationship. ously considered relatively safe are becoming targets and that the Taliban and other groups are likely to target the seven loca- On 24 May, the International Crisis Group (ICG) released a tions identified for the first phase of the security transition. report addressing insurgency in Tajikistan. The document, entitled Tajikistan: The Changing Insurgent Threats, high- Meanwhile, in advance of the security transition, concern over lights the link between Tajik members of the Islamic Move- corruption in the Afghan National Army (ANA) made head- ment of Uzbekistan (IMU) and the Afghan Taliban. The report lines this week. According to the Washington Post, Afghan suggests the two groups are working together and are currently army officers involved in diverting the salaries of deserted focusing their efforts on the Afghan government in Kabul but soldiers into their own accounts were tried for their crimes. could shift northward to Tajikistan. Tajikistan reportedly lacks

Page 4 01 June 2011 sufficient counter-insurgency (COIN) capability and currently just over the Afghanistan-Tajikistan border. Reportedly, the has only one COIN unit numbering just over 30 soldiers, says Afghan drug smugglers routinely abduct the for ransom, the ICG. Additionally, the drug trade connects Afghans and thus prompting Tajik citizens to call for weaponry to defend Tajiks. As reported by Radio Free Europe/Radio Liberty, there themselves. is a growing trend of Afghan drug dealers kidnapping Tajiks

Socio-Cultural Development Erin Foster ► [email protected]

he American University of Afghanistan (AUAF) held stop teaching girls. Deen Mohammad Darwish, a spokesman its first commencement ceremony for 32 graduates with for the Logar provincial governor, told reporters that Khan T degrees in business, information technology, computer Mohammad “was killed because he wanted to run the school”. science, political science and public administration, reports the Girls‟ schools are the target of periodic attacks by the Taliban United States Agency for International Development with numerous cases of gas poisoning reported in 2010. Ac- (USAID).The University opened in March 2006, when it first cording to the article, 2.4 million Afghan girls are currently accepted students into its Foundation Studies Program (FSP), a enrolled in school, and 20% are unable to regularly attend. pre-college preparatory course. AUAF currently has 789 stu- dents enrolled in its four degree programmes and in the FSP. Acting Minister of Public Health Dr. Suraya Dalil told Meanwhile, a recent article from the Christian Science Moni- Pajhwok that more than 152 clinics in 14 provinces will re- tor questions whether the recent graduates ceive equipment to diagnose tuberculosis and malaria. A re- will stay in Afghanistan or take jobs ported 108 of 755 clinics across the coun- abroad. As described in the Christian Sci- try have already received diagnostic equip- ence Monitor, AUAF was established with “[He} was killed because he wanted ment. Additionally, the Ministry of Public Health (MoPH) is planning to distribute the hope that graduates would stay and to run the school” help rebuild Afghanistan. Afghan gradu- one million mosquito nets in 2011. Nearly ates generally face unemployment rates Khan Mohamed, 400,000 cases of malaria were reported in close to 35% and an average income of 2010. In other health news, public health Logar Provincial Governor USD 800 per annum. A professor from officials in Nangarhar province are taking Kabul University, Shafiq Wardak, told action against businesses selling expired reporters that “[o]verall this is a problem medication and food reports Pajhwok. An for university graduates – they can‟t get estimated 12 tonnes of expired medications their desired job”. However, financial aid and desirable cur- and expired food were burned following a two-month investi- riculum are a draw for potential AUAF applicants. In related gation by municipal and National Directorate of Security news, Pakistan is offering 729 scholarships for Afghan stu- (NDS) officials. More than thirty medical stores and pharma- dents to attend graduate and post-graduate schools in its coun- cies were closed as a result of violations with owners facing prosecution. try, reports Pajhwok Afghan News. The Pakistani Ambassador to Afghanistan, Mohammad Sadiq, said nearly 6,500 Afghans A 2nd century Gandharan Buddha stolen from the National currently study in Pakistan and that future increases in scholar- Museum of Afghanistan (NMA) during the 1990s has been ship programmes should boost this number to 10,000 by 2014. discovered and returned by an anonymous British art dealer,

The Guardian reports that the recent killing of a teacher by the according to the Gardian. Director of the NMA, Omara Khan Taliban at Porak girls‟ school in Logar province presents a Massoudi, explained that the 1.2-metre-high Buddha is “one of reminder of the challenges continuing to face Afghan girls in our most treasured objects”. The Buddha will join the visiting accessing education. The headteacher, Khan Mohammad, re- Afghan antiquities collection entitled “Afghanistan: Cross- ceived multiple death threats from the Taliban warning him to roads of the Ancient World”, currently on display at the British Museum until July 2011.

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