to the president and the people of afghanistan · to the president and the people of afghanistan...

x

To the President and the People of Afghanistan

INDEPENDENT JOINT ANTI-CORRUPTION

MONITORING AND EVALUATION COMMITTEE

Quarterly Report - April 2017

Quarterly Report-April 2017. Independent Joint Anti-Corruption Monitoring and Evaluation Committee

1

Table of Content 1. Chairman’s Letter:……….……………………………………………………………..03 2. The corruption balance sheet according to MEC………………………..05 3. MEC’s 22nd Mission: ………………………………………………………………....09 4. MEC findings this quarter: ………………………………………………………..10

a. Ministry of Communication, Information and Technology (MCIT) Review of Anti-Corruption Plan

b. Ministry of Finance (MOF) Review of Anti-Corruption Plan c. Ministry of Commerce and Industries (MoCI) Review of Anti-

Corruption Plan d. MOPH 2nd follow up report e. Status of Asset Recovery of Kabul Bank

5. MEC Current Activities……………………………………………………………..14 a. Analysis of Corruption Vulnerabilities in the Attorney General’s

Office b. Analysis of Corruption Vulnerabilities across the Ministry Of

Education. c. Corruption Analysis of Breshna and Electricity d. Vulnerability to Corruption in the Afghanistan Revenue

Department e. CARD-F Inquiry f. Bamyan Trip Report g. Assessments based on Presidential orders

6. Acronyms:……….….…………..…………………………………………….…17


2

''And do not consume one another's wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you [to] consume a portion of the wealth of the people in sin,

while you know [it is unlawful].'' --2:188 , The Holy Quran--


3

Chairman’s Letter:

Sometimes you cannot see the wood for the trees. This is a well-known proverb in my country. In relation to corruption, the ‘trees' are the thousands of ways in which corruption invades daily life in Afghanistan. Everyone knows this and is used to it, even when they hate participating in it. These ’trees’ have a formal definition in Afghan law: the legal definition of corruption covers eighteen acts, such as bribery, embezzlement and abuse of power The ‘wood’ is the bigger picture. And the bigger picture on corruption is about the illegal actions of powerful individuals, placing their people and stealing large sums of money. Large scale corruption is a terrible crime against the future of this country. It is the theft of the education of millions of young Afghans by only a few hundred people. What is the name of this ’wood’? It is very simple: Large scale corruption is treason to the homeland. In Afghan law, treason is defined as “Intentional acts by a citizen of the Democratic Republic of Afghanistan against the people, and ‘joining the enemy’. Engaging in large-scale corruption means joining the enemies of Afghanistan. At MEC, we are stepping up our actions to identify where the government’s anti-corruption efforts are insufficient and giving our advice on how to fix it. We are also stepping up our actions on where the international community’s efforts are insufficient or showing corruption. Since January 2017:

MEC has reviewed the Anti-Corruption plan of the Ministry of Telecommunications and Information Technology (MCIT).

MEC has reviewed the Ministry of Finance’s Anti-Corruption plan MEC has reviewed the Anti-Corruption plan of the Ministry of Commerce and

Industry (MOCI). MEC has completed, but not yet published, a detailed analysis of the corruption

vulnerabilities in the Attorney General’s Office. MEC has completed its second and third follow up reports of anti-corruption actions

in the Ministry of Public Health (MOPH).

There has been one big positive area of progress against corruption in the country: the Anti-Corruption Justice Centre is now really starting its work. These people are immensely brave: just one week ago two of them were killed. The whole country should salute and support the work of the ACJC.


4

MEC’s work during the coming quarter continues this more aggressive strategy:

MEC is in the middle of a detailed study on corruption in electricity (Breshna) MEC is doing a study of corruption vulnerabilities in the tax offices in MOF MEC is starting a study on CARD-F, a major donor-funded agriculture programme MEC is starting a study on the corruption vulnerabilities in the Independent

Electoral Complaints Commission MEC will be initiating a study of corruption in mining contracts and the

vulnerabilities in the Ministry of Mines and Petroleum MEC will be reviewing the Anti-Corruption plans of the Ministry of Transport,

Ministry of Foreign Affairs and Ministry of Refugees and Repatriates.

A powerful element of MEC’s structure is that the MEC Committee comprises equal numbers of Afghan and international Commissioners, three of each. This makes it easier for MEC to act independently of partisan national interests, and equally independently of international community special interests. In this last quarter, two of our Commissioners stepped down: Dr. Yama Torabi and Dr. Shaukat Hassan. I would like to thank them both for their tireless work on MEC’s behalf, and for their steadfast and continuing support for MEC. MEC exists to speak the truth about corruption and progress against corruption - to the President and to the people of Afghanistan, and to the international community. This is our role and we will carry it out to the best of our capability.

Dr. Mark Pyman

Chair, Committee of MEC

May 7th, 2017


5

First quarter 2017 - the corruption balance sheet according to MEC:

The positive

The evolution of the Anti-corruption Justice Center (ACJC) –which had begun its work in

November 2016 with a few hiccups— into an effective judicial device was the most

encouraging development of this quarter. In January alone, the ACJC processed at least

60 cases involving government officials who were accused of embezzlement, bribery,

usurpation of public land and illegal mining, according to the Attorney General’s Office.

On January 9th, the ACJC court sentenced General Abdul Wasey Raofi, the head of

monitoring for the Procurement Department of the Ministry of Interior Affairs, to 12 years

imprisonment on charges of bribery. The Center also convicted 5 Ministry of Finance

employees for bribery and in March, sentenced 4 officials to prison for their involvement

in embezzling funds in the Khawja Rawash Housing Project.

The corruption case of Kamran Alizai, Chairman of Herat Provincial Council received

much media attention. The ACJC primary court gave Alizai two years and six months jail

term for misuse of authority, interference in the affairs of Herat Attorney General’s Office

and in the appointments of high-ranking provincial and for insulting prosecutors.

Picture copyright@ www.bbc.com/persian


6

A number of other corruption-related detentions, dismissals and suspensions of high-

ranking officials occurred in the first months of 2017:

In January, Abdul Razaq Wahidi, the Minister of Communications and Information Technology, was suspended

Later in the month, President Ghani ordered dismissal of heads of the Procurement Department of the Ministry of Interior Affairs who had worked in that department in the past ten years and the AGO announced the opening of all MoI contract-related corruption cases for the years 2012 to 2015.

The Ministry of Defense said at the end of March that in the last six months it had dismissed about 1400 officials on corruption charges and had replaced them with young and committed individuals.

At the end of January, the AGO ordered suspension of at least 17 officials of the Ministry of Justice’s Directorate of Law (Huquq) over their misuse of authority.

Three customs officials in Herat, a District Chief in Paktika, a former shareholder of Kabul Bank and an army corps commander with the rank of Lt. General were arrested on various corruption charges.

Perhaps the most hopeful sign of Afghanistan’s fight against corruption was embodied in a public rally in Herat, where demonstrators, organized by provincial civil society groups, conveyed their condemnation of corruption by burning a symbolic ‘corruption dummy’ in front of the governor’s office.

The negative

While some anti-corruption announcements appeared positive, they raised concerns

about appropriate and result-based follow-up action. For instance, on January 10, the

High Office of Anti-Corruption Oversight announced that it would ask high-ranking

government officials to register their assets. The identification of those who fail to comply,

the HOO said, will be shared with the public. No progress report on the asset registration

process has been made public, nor any non-compliant official has been named so far.

A Wulusi Jirga (lower house of the Parliament) member claimed on February 27 that 70

percent of appointments at the Ministry of Foreign Affairs during the past two years were

made illegally. No apparent follow-up action has so far been taken on this significant claim

of corruption in the MoFA’s recruitment process.

On March 25, the Ministry of Defense announced that it has “swapped” posts of at least

1000 officials accused of corruption in MoD’s Procurement and Finance departments.

While the MoD should be commended for identifying its corrupt officials, its choice of

remedy is highly questionable.

Officials at the Ministry of Communications and Information Technology said in March

that nearly Afs 5.9 billion have been collected from the 10 percent levy on top-up telecom


7

cards, but the method of tax collection remains to be vulnerable to embezzlement. While

identifying the problem is a positive step at MoCIT, taking corrective action is still not in

sight.

A number of reports that were published last quarter highlighted the continued gravity of

corruption in Afghanistan. The Afghan Anti-Corruption Network’s March report reveals

increased corruption in the mining sector. The report states that at least 217 mining

contracts will be given to powerful figures and those connected to MPs and government

officials in exchange for bribes of at least USD 100,000 for each contract.

Integrity Watch Afghanistan’s biennial National Corruption Survey released at the end of

2016 reflects an increased perception of corruption among the public, with 71 percent of

those surveyed saying that corruption has worsened in the past two years. IWA estimates

that Afghans paid USD2.9 billion in bribes in 2016, an increase from USD1.9 billion

estimated by the organization for 2014.

A report released in mid-March by Construction Sector Transparency Initiative

Afghanistan (CSTIA) revealed that over the past 15 years, billions of dollars have been

embezzled in infrastructure projects due to lack of transparency. According to this report,

the awarding of contracts based on favoritism has greatly contributed to the problems that

plague implementation of construction projects.

On the correlation of corruption and security, the Special Inspector General for

Afghanistan Reconstruction, John F. Sopko bluntly stated in March that, “Without

question, the top two challenges in Afghanistan are corruption and the lack of capacity in

the Afghan Security Forces.”

Meanwhile, the European Union took on the slow pace of reform in the Afghan justice

sector. “Today the judiciary is too often a tool for the powerful and rich and it is not serving

ordinary Afghan citizens who suffer from injustice fed by corruption,” stated EU

ambassador Franz-Michael Mellbin on March 26th.

And finally, in March, on the occasion of the 2nd anniversary of Farkhunda Malikzada's

mob lynching in Kabul, the Center for Investigative Journalism published a report detailing

the failure of the system in bringing the culprits to justice. The report claims that despite

the findings of the Independent Association of Defense Lawyers, corruption in its various

forms and in all relevant state institutions, has prevented the Supreme Court to finalize

this case.


8

''The biggest challenges facing Afghanistan next year are leadership and

corruption in the Afghan military.'' --General John Nicholson, --

Head of NATO and U.S. forces in Afghanistan


9

MEC’s 22nd Mission

The MEC Committee convoked its 22nd quarterly meeting from January 22 to February 3rd in Kabul. Committee Members reviewed MEC’s on-going and final reports, made decisions on the future role, strategy and operational aspects of MEC and also had several external meetings, which included; beneficial discussions with CEO Dr. Abdullah, Ministers, the SRSG, Chief Justice, Attorney General, Ambassadors, Head of SIGAR, World Bank, Civil Society and Private Sector.

MEC released its Second Quarterly Monitoring Report on following up the implementation of recommendations of MEC’s report ‘Vulnerability to Corruption in the Afghan Ministry of Public Health’

MEC committee visited Indira Gandhi Hospital and met its management board MEC held its 2nd External Anticorruption Forum with high-level state officials MEC Committee Members, Dr. Taseva and Dr. Hassan, participated in a ACJC

public trial MEC committee met with head of IDLG MEC committee met with UN Secretary-General's Deputy Special Representative

for Afghanistan MEC Committee Member, Dr. Pyman, led an internal anticorruption brainstorming

session with MEC Secretariat staff


10

MEC findings this quarter:

Almost all Ministries have developed anti-corruption plans. MEC is carrying out reviews

of these ministry plans. In the first quarter of 2017 MEC reviewed the following anti-

corruption plans and made recommendations:

a. Ministry of Communication, Information and Technology

(MCIT) Review of Anti-Corruption Plan During the year 2016, The Ministry of Communication, Information and Technology

committed to implementing an Anti-Corruption Plan. MEC’s assessment of the MCIT plan

began in December 2016 and was completed in early February 2017. The main findings

of the review are --.

MCIT is so far almost entirely failing to implement its Anti-Corruption Plan. (Full

Report Link)

http://mec.af/files/02_02_2017_MOCIT_VCA__Full_Report_English.pdf

http://mec.af/files/02_02_2017_MOCIT_VCA__Full_Report_English.pdf


11

b. Ministry of Finance (MOF)

Review of Anti-Corruption Plan Progress as measured by indicators is at 34%.

However, the plan itself is not proportionate to the

large scale of the Ministry and does not cover all

aspects and vulnerabilities of MOF. The plan

contains only 15 activities, while MOF is a large

ministry and one of the most susceptible to

corruption for example, the scope of activity in

ARD, which is the largest domestic source of

revenue, is limited to two objectives and five

activities. The Deputy Ministry for Admin with 3

General Directorates and 13 Directorates has only

one activity in the plan. In the Customs

Department, seven activities identified by MOF Internal Audit Directorate are not even

included in the plan.

Moreover, many of the actions in the plan were already largely complete before the plan

was started. For example, Out of the 17 fully implemented indicators, four had been

largely implemented before 2016, as were many activities related to Afghan Customs and

Revenue Departments (two thirds of all activities). The MOF Anti-Corruption Plan was

devised for the year 2016-2017.

This plan is too small and incomplete. MOF needs to develop a second generation

plan based on its existing realities.

c. Ministry of Commerce and Industries (MoCI) Review of Anti-

Corruption Plan MEC’s team reviewed the Anti-Corruption Plan of MoCI from early February to April 26th.

The key findings of the review focus on the Anti-Corruption Plan and its impact,

particularly on the revenue of MoCI. The purpose of the report is to determine whether

or not MoCI can fight against corruption through its ACP, and subsequently, increase its

revenue. Based on the conclusion of the report, the answer is not affirmative.

The MOCI plan is seriously deficient, ignoring several well-know areas of

corruption.

6%

16%

24%

20%

34%

Not Implemented 25-50% Implemented

No Evidence 50-75% Implemented

Fully Implemented


12

d. MOPH 2nd follow up report MEC has been regularly monitoring the implementation of its recommendations as

outlined in our MVCA of MOPH Report published on June 7th 2015. In the second follow-

up report issued on February 2nd 2017, MEC found that significant progress has been

made.

There has been credible progress in several areas, for example: Out of 115

recommendations issued by MEC, 14 recommendations have been fully implemented,

63 recommendations have been partially implemented and no actions have been taken

regarding the remaining 40 recommendations by MOPH. In addition, there are some

challenges in implementing the MEC’s recommendations in MOPH.

MEC considers the actions of MOPH as positive in the past three months and

appreciates its efforts.

(Full Report Link)

e. Status of Asset Recovery of Kabul Bank MEC has been following up the Kabul Bank case since the time the scandal unfolded.

We issued a Public Enquiry Report in 2012, a Follow-up Report in 2014 and an update of

Picture copyright@ fb.com/afghanistan-Supreme-Court- Picture copyright@ www.ceo.gov.af

http://www.mec.af/files/02_02_2017_MOPH_2nd__Followup_Report_English.pdf


13

the case in 2016. According to our new findings, the process of the recovery of stolen

assets of Kabul Bank has been very slow from the beginning and has further slowed down

in recent mounts, reducing the average monthly recovery from 500,000 – 800,000 USD

to only 80,000 – 100,000 USD. The reason for that reduction is largely the illegal

interference and influence of high-ranking officials in the affairs of the Kabul Bank

Receivership, the body which is responsible for collecting the stolen money.

The chart below shows the status of the asset recovery since the establishment of the

NUG

A number of debtors decline to pay back their debt or are trying to renegotiate the amount

of their outstanding liability with the receivership, thereby undermining the verdict of the

Supreme Court and the Incentive Procedure. In some cases these debtors are backed or

supported by high-ranking officials.

MEC expects a complete and transparent implementation of the court order and seizure

of all the assets of those who do not pay their outstanding debts, in accordance with the

Incentive Procedure.

The recovery of assets from Kabul Bank has slowed down considerably

31.1

31.9

14.1

Recovery/Settlement since Establishment of the NUG in Million USD

Cash Recovery

Instalment agreement backedby colleterals

Interest dicounted according tothe Incentive Procedure


14

MEC Current Activities

a. Analysis of Corruption Vulnerabilities in the Attorney

General’s Office In October 2016 MEC launched the Vulnerability to Corruption Assessment (VCA) of the

Attorney General Office. The initiative was welcomed by the Attorney General, His

Excellency Farid Hamidi. The data collection consisted of over 230 interviews in Kabul

and a number of provinces with AGO officials, law enforcement officials, defense

attorneys, end users, legal aid providers, legal educators, and detention centers. The

reform initiatives of the Attorney General since his appointment offer an opportunity to

pursue implementation of a more rigorous reform plan required to strengthen the AGO’s

ability to address crime and fight corruption. This report is currently in its final stages.

b. Analysis of Corruption Vulnerabilities across the Ministry

Of Education. The Minister of Education, H.E. Dr. Assadullah Hanif Balkhi, invited MEC to conduct this

analysis. The work started on January 23rd, 2017, and will be completed in July 2017.

This is a major analysis covering all substantial parts of the ministry and schools in a wide

range of provinces. The work is currently about 40% complete, with the bulk of the effort

coming in the next three months.


15

c. Corruption Analysis of Breshna and Electricity This analysis was launched at the end of 2016 and will be completed in July 2017. The

assessment in the project is on the following sections: The legal structure of Breshna, the

corporate governance and accountability within the company, the recruitment process,

anti-corruption policy, power distribution, financial management system, and procurement

system and customer satisfaction. The assessment is currently 60% completed.

d. Vulnerability to Corruption in the Afghanistan Revenue

Department At the request of His Excellency the Minister of Finance, Eklil Hakimi, MEC started a

Vulnerabilities to Corruption Assessment (VCA) in the Ministry of Finance - Customs and

Revenue Department (CRD), previously known as the Afghanistan Revenue Department

(ARD). The assessment will have a concentrated focus on the Large Taxpayers Office

(LTO), Medium Taxpayers Office (MTO) Small Taxpayers Office (STO) in Kabul and to a

lesser extent on the Kabul districts and Provincial offices. The VCA will focus on the

identification of key governing vulnerabilities within the Revenue Department and will

recommend changes or improvements to policies and procedures that can further assist

the Revenue Department in corruption prevention and deterring measures. The report will

be published in July.

e. CARD-F Inquiry MEC started preliminary work on an assessment of the Comprehensive Agriculture and

Rural Development Facility (CARD-F). CARD-F is an inter-ministerial development

program funded by donors and managed by an Afghan management unit.

The program was initiated in 2009 to improve the licit rural income in Afghanistan by

commercializing the agriculture sector, strengthening agricultural production and

processing and reducing opium cultivation.

f. Bamyan Trip Report The committee in their 22nd mission had a provincial visit to Bamyan and had at least

sixteen meetings with Bamyan officials, UNAMA, civil activist, journalists and university

students.

The main corruption challenges in Bamyan were in education, health, the courts,

agriculture, the municipality, the police, recruitment of government officials at all levels,

contracts, and the influence of Members of Parliament.


16

But at the same time, MEC found many positive factors in the province, such as the

strength of civil society, the official support for civil society, the personal commitment of

many of the individuals, and the passion of Bamyan’s citizens and students for tangible

progress against corruption.

Conclusions:

Will conduct larger studies about recruitment process of the state

The issue of theft and sale of equipment allocated to police is a serious case and

MEC needs to demand through an official letter an enquiry into the cases of

corruption in Bamyan Police.

The Arazi must make a registry of all government and private land and be able to

reclaim the land usurped by powerful people in the province.

MEC must submit a letter to ministry of information and culture, demanding an

enquiry into the use of restricted land for commercial use by powerful individuals

in Bamyan.

As part of its advocacy, MEC must inform AGO and engage in the cases of

corruption in the departments of education, health, mining, police, Arazi and

culture.

g. Assessments based on Presidential orders As part of MEC’s mandate and Strategic Plan, during this quarter, MEC has been tasked

to be part of a number of ad-hoc assessment teams consisting of different governmental

institutions based on separate Presidential Orders.

Assessment of Allegations / Complaints in regards to Illegal activities within the

MCIT in the Recruitment Process of CBR, February- March 2017

Assessment of the amounts and types of investments in the country and the

implementation status of private sector’s suggestions, February- on going 2017

Assessment of allegations regarding the illegal practices in Finance /

Administration areas of MOLSAMD, February- March 2017.


17

Acronyms:

AFN Afghani (currency)

AGO Attorney General’s Office

ACJC Anti-Corruption Justice Center

AOP Administrative Office of the President

ARAZI Afghanistan Independent Land Authority

AREU Afghanistan Research and Evaluation Unit

ARD Afghanistan Revenue Department

CARD-F Comprehensive Agriculture and Rural Development – Facility

CEO Chief Executive Officer

CRD Customs and Revenue Department

HMIS Health Management Information System

HOO High Office of Oversight

IDLG Independent Directorate of Local Governance

IWA Integrity Watch Afghanistan

KBR Kabul

MEC Independent Joint Anti-Corruption Monitoring and Evaluation

MCIT Ministry of Telecommunications and Information Technology

MOCI Ministry of Commerce and Industry

MOF Ministry of Finance

MOI Ministry of Interior Affairs

MOLSAM Ministry of Labor Social Affairs, Martyrs and Disabled

MOPH Ministry of Public Health

MTO Medium Taxpayers Office

MUD Ministry of Urban Development

NGO Non Government Organizations

NSC National Security Council of Afghanistan

LTO Large Taxpayers Office

VCA Vulnerabilities to Corruption Assessment

SAO Supreme Audit Office (SAO)

SRSG Special representative of Secretary General, UN.

STO Small Taxpayers Office

TI Transparency International (TI)

UNAMA United Nations Assistance Missision in Afghanistan

USAID United States Agency for International Development

USD US Dollar (currency)

Quarterly Report ------------------------------------------------------

x

Published Date: April 2017

Published By: Independent Joint Anti-Corruption Monitoring and Evaluation Committee

Phone: +93 797 51 58 71

Email: [email protected] Facebook: www.fb.com/mec.afghanistan

Website: www.mec.af Twitter: www.twitter.com/MEC_Afghanistan

to the president and the people of afghanistan · to the president and the people of afghanistan...

Documents