The oversight body for American aid to Afghanistan has stated that the Taliban lacks any legal claim to the substantial funding allocated for the nation, as they are not officially recognized as its government and are subjected to sanctions.
In a recent report released on Friday, the Special Inspector General for Afghanistan Reconstruction also urged the Trump administration and Congress to consider reclaiming nearly $4 billion set aside for Afghanistan under U.S. governance.
In 2022, the United States transferred $3.5 billion in Afghan central bank assets that had been frozen in the country to the Fund for the Afghan People, which is based in Switzerland. Since that transfer, the fund’s value has increased to nearly $4 billion, as noted by the inspector general.
Despite the fund’s growth, there have been no disbursements made to benefit the Afghan populace directly; however, the initiative is designed to stabilize and safeguard the economy on behalf of the citizens.
The report emphasizes that the Taliban seeks access to these funds, despite their illegitimate claim since they are not acknowledged by the United States as the legitimate government of Afghanistan. They are also designated as a Specially Designated Global Terrorist entity and face international sanctions from both the U.S. and the U.N.
This recent analysis comes in light of Trump’s policy to suspend foreign assistance for 90 days while assessments were made to check their alignment with his administration’s objectives.
Since the withdrawal of U.S. troops in 2021, the report highlights that nearly $3.71 billion has been expended in Afghanistan, with the bulk of those funds allocated to U.N. organizations.
Additionally, there remains $1.2 billion ready for potential distribution, according to the findings. Although U.S. humanitarian efforts may have aided in preventing widespread famine amid economic chaos, they have not deterred the Taliban from continuing to hold American citizens captive, suppressing women and girls’ rights, censoring the media, permitting the nation to become a sanctuary for terrorists, and targeting former Afghan government leaders, the watchdog observed.
While the United States continues to be the largest donor to Afghanistan, the report indicates that much of the financial aid is subject to taxation or misappropriation.
As Chris Borgeson, the deputy inspector general for audits and inspections at the oversight organization, pointed out last August, greater distance from the initial funding source typically results in diminished transparency.
