This blog aims to highlight issues and information that don't always make it into the mainstream media. Recognising that comment is cheap, wherever possible it will link you directly to documents and sources that are mentioned in the text.
I realised some time ago that it was impossible to write about Afghanistan without writing about Pakistan and other neighbouring countries. With that in mind, the reader will come across articles that, while not specifically about Afghanistan, in some way shed light on the conflict.
Although it was published last November, the detailed report into the collapse of Kabul Bank, published by Afghanistan's Independent Joint Anti-corruption Monitoring and Evaluation Committee, is still worth a read. You can find a copy here. As the report states: "Kabul Bank’s controlling shareholders, key supervisors and managers led a sophisticated operation of fraudulent lending and embezzlement predominantly through a loan-book scheme. This resulted in Kabul Bank being deprived of approximately $935 million funded mostly from customer’s deposits. The loan-book scheme provided funds through proxy borrowers without repayment; fabricated company documents and financial statements; and used information technology systems that allowed Kabul Bank to maintain one set of financial records to satisfy regulators, and another to keep track of the real distribution of bank funds. Shareholders, related individuals and companies, and politically exposed people were the ultimate beneficiaries of this arrangement. Over 92 percent of Kabul Bank’s loan-book – or approximately $861 million – was for the benefit of 19 related parties (companies and individuals). Except for the initial investment of $5 million, all shareholder acquisitions and transfers were ultimately funded by money from Kabul Bank."