Where is all the US aid money in Afghanistan?

My investigative feature in UAE newspaper The National… (PDFs of the stunning looking feature… DC.front… and… DC.spread):

The human cost of the Afghan war has been devastating. The United Nations estimates that at least 20,000 Afghan civilians have been killed since 2001 and violence is worsening across the country.

United States president Barack Obama, fearing an Iraq-style state collapse after withdrawing the bulk of US forces from there in 2011, has pledged to maintain an indefinite presence of 10,000 soldiers, tens of thousands of contractors (the Pentagon claims up to 30,000) and an unknown number of special forces. Foreign occupation is seemingly permanent.
Former head of the Central Intelligence Agency (CIA) and commander of US special operations command, General David Petraeus, argued in a recent… Washington Post… opinion piece that Washington should step up its bombing campaign to halt a resurgent Taliban. There’s no evidence that this failed strategy, advanced in Iraq and Afghanistan over more than a decade, would be any more successful this time.
Afghan resources, estimated to be worth billions of dollars, have provided very little money to the general population.
During my time in Afghanistan last year whilst investigating the mineral, oil and gas industries, I witnessed the suffering of local people around proposed mining sites, such as Mes Aynak in Logar province. They were kicked off their lands, without jobs, and were attacked by the Taliban, ISIL and the Afghan military.
Countless western and Afghan corporations have made a killing in the country since 2001, often replacing functions once undertaken by the state, and with little accountability. This policy has been pursued by both the Bush and Obama administrations.
A 2010 US Congressional report, Warlord, Inc, found that the US military was indirectly paying the Taliban and warlords, via private contractors, to ensure safe passage for their goods across the country.
The ideology behind outsourcing war existed before September 11 but accelerated after the attacks on New York and Washington. Apart from enriching corporate friends of the George W Bush administration, it was framed as a way of saving money for the US taxpayer (the evidence for this is missing) and reducing the responsibility of the state to manage its own affairs.
Afghan civilians have borne the brunt of this policy. There is currently no sustainable vision by Afghan president Ashraf Ghani to support his country when western aid inevitably reduces to a trickle.
The US defence department’s Task Force for Business and Stability Operations (TFBSO) had grand ambitions in Afghanistan. Embarking on its work there in 2009, the Pentagon group pledged to exploit the country’s large and untapped mineral resources and to attract international investment.
Former head Paul Brinkley told the… Washington Post… in 2011 that, “we do capitalism. We’re about helping companies make money. That mindset cannot exist in a humanitarian organisation. It’s like asking General Motors to make potato chips.”
After being established in 2006 to stabilize war-torn Iraq, TFBSO had remarkable freedom to act independently without adequate oversight. It attracted US$8 billion (Dh29.4bn) in private investment commitment in Iraq with little long-term evidence that former state-run businesses benefitted from the money. In Afghanistan, Brinkley brought Google to Kabul to start an information technology industry while pledging to expand the nation’s fruit and carpet trades.
On-the-ground investigations, however, revealed the paucity of TFBSO’s legacy. The US government-appointed special inspector general for Afghanistan reconstruction (Sigar) has released a number of reports demanding accountability for the group’s spending. It has been stymied at every step of the way.
The US has spent more than $110bn in US taxpayer funds to support reconstruction in Afghanistan since 2001. It is now the country’s longest war and yet the outcome has been desultory. Sigar head John F Sopko gave a speech in November at the Watson Institute for International Studies at Brown University where he said that more than 300 reports issued since the group launched in 2008 had brought some successes.
Sigar had conducted “nearly 900 investigations, resulting in 103 arrests, 136 criminal charges, 100 convictions or guilty pleas, 78 sentencings, and roughly $945 million in savings for American taxpayers”, he said. This amount is a tiny fraction of the financial commitment made by Washington in the past 15 years.
In a November letter to US defence secretary Ashton Carter, Sigar showed how 20 per cent of TFBSO’s 2010-2014 $822m budget was spent on private villas and security guards in Kabul.
“If TFBSO employees had instead lived at DoD [department of defence] facilities in Afghanistan”, it said, “where housing, security and food service are routinely provided at little or no extra charge to DoD organisations, it appears the taxpayers would have saved tens of millions of dollars.”
Sigar estimated that in 2014 alone, the 10 TFBSO staff would have paid just $1.8m to live at the US embassy.
Another report, released in October, accused TFBSO of spending up to $43m to build a natural gas filling station in the northern Afghan city of Sheberghan when a similar facility in Pakistan cost only $500,000.
“One of the most troubling aspects of this project”, Sigar said, “is that the department of defence claims that it is unable to provide an explanation for the high cost of the project or to answer any other questions concerning its planning, implementation or outcome.”
TFBSO was disbanded last year after consistent allegations of ethical breaches and financial irregularities. But its legacy lives on. The first Sigar report of 2016 found that TFBSO had spent up to $488m since 2009 attempting to develop viable oil, gas and mineral businesses in Afghanistan, but achieved nothing sustainable. Corruption and rampant violence conspired against it.
The lack of accountability of Washington’s war in Afghanistan was exposed when Sigar chief Sopko wrote to defence secretary Carter in October and chastised his department for “no longer having any knowledge about TFBSO, an $800m programme that reported directly to the office of the secretary of defence and only shut down a little over six months ago”.
I asked the department of defence to respond to Sigar’s allegations against TFBSO, and spokesman Army Lt Col Joe Sowers told me that, “we welcome continued review by Sigar in their effort to ensure the TFBSO activities are properly assessed and analysed.…  With respect to holding someone accountable, to our knowledge, Sigar has not identified or accused any particular individual of malfeasance. The department will cooperate fully with any investigations.”
Sigar said to me that there had been no official response from the department of defence to its 2015 report detailing extensive TFBSO use of private villas in Kabul. Likewise there was no substantive comment after Sigar accused TFBSO of massively overcharging for the natural gas filling station in Afghanistan.
Former TFBSO head Brinkley now runs the investment company Nawah, in Jordan. Critics accused him of entering the private sector too soon after leaving the US government in 2011 – only four months afterwards – though he told me that he “did so in accordance with the ethical rules established by the government to do so”.
Brinkley explained that during his time running TFBSO, from 2006 to 2011, oversight “was very, very rigorous. The recent media reports about Sigar studying TFBSO spending appear to be focused on activities that occurred after my departure. However, to assist in providing some important context and history, I voluntarily met with four members of the Sigar study team in mid-December”.
Brinkley believed that TFBSO was “based on the belief that the US government can offer economic improvements as instruments of foreign policy. Failing to provide a hopeful future for young people in conflict-ridden countries leads to frustration and sympathy with insurgents ”¦ I felt we served the [TFBSO] mission well”.
Amidst all the carnage and mismanagement in Afghanistan, it is the civilians who have suffered the most. The Taliban today control more territory than at any time since they were overthrown in 2001. The prospects for the country, after almost 15 years of foreign occupation, are grim. There is every indication that contractors, such as DynCorp and Fluor Corporation, will continue making a fortune profiting from the conflict. However, according to Sigar, it’s nearly impossible for American auditors to assess their work because they can only access about 10 per cent of the country due to insecurity.
These facts don’t mean that some outspoken Afghans aren’t still fighting for improvements.
Shughla,… a Fulbright alumni from Kabul (and member of peace initiative the Afghan Fulbrighters for Peace), told me that she blamed many international agencies for ignoring the real needs of Afghan women since 2001. “There was a limited assessment of cultural and contextual background”, she said, “and gender relations in the policies were one of the reasons why Afghan women made fragile and hindering progress despite the gigantic investment.”
Shughla argued that there needed to be empirical research “undertaken by civil society, government agencies and international donors as to where, what and how to improve the livelihood of Afghan women who are manoeuvring in a highly patriarchal and tribe-oriented society.”
The general failure of the USAID project in Afghanistan can be attributed to many factors, but a lack of local consultation was fatal. “Mohammed”, an Afghan in Kabul working for an international financial organisation who requested anonymity over security fears, said that the majority of USAID-funded projects had “largely failed to have significant impact on the life of Afghan people. Those who develop these projects are sitting in Washington DC with very little understanding of the realities in this country”.
I asked Mohammed why projects condemned by Sigar were so ubiquitous in Afghanistan. “The… contractors… have little access beyond Kabul city”, he said, “with very poor understanding of the country, and try to remotely manage their projects. In order to keep their senior counterparts in the government happy, they usually provide them favours that can border on corruption. Accountability mechanisms are… very weak.”
This accurately articulates a key problem for the US mission in Afghanistan since the beginning. A lack of transparency has bedevilled the project since 2001, and president Obama, despite pledging during his 2007 campaign to clean up the bloated contracting racket, has done nothing.
History will not be kind to the litany of American mistakes and crimes during its longest war.
Antony Loewenstein is an independent journalist and author of Disaster Capitalism: Making a Killing Out of Catastrophe.

Text and images ©2024 Antony Loewenstein. All rights reserved.

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