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GOVERNANCE society as not in line with Islam or as an “imported” Western concept. Many CSOs have, consequently, felt the need to incorporate Islamic rhetoric in order to align their operations with prevalent cultural paradigms. 467 SUBNATIONAL GOVERNANCE Provincial and Municipal Programs USAID has two subnational programs focused on provincial centers and municipalities: the Initiative to Strengthen Local Administrations (ISLA) and Strong Hubs for Afghan Hope and Resilience (SHAHAR) programs. Table 3.16 summarizes total program costs and disbursements to date. TABLE 3.16 USAID SUBNATIONAL (PROVINCIAL AND MUNICIPAL) PROGRAMS Project Title Start Date End Date Total Estimated Cost ($) Cumulative Disbursements, as of 12/31/2016 ($) Strong Hubs for Afghan Hope and Resilience (SHAHAR) 11/30/2014 11/29/2017 $73,499,999 $29,441,104 Initiative to Strengthen Local Administrations (ISLA) 2/1/2015 1/31/2020 62,364,687 13,468,975 Source: USAID, response to <strong>SIGAR</strong> data call, 1/18/2017. Initiative to Strengthen Local Administrations The $62 million ISLA program is meant to enable the Afghan government to improve provincial governance in the areas of fiscal and development planning, representation of citizens, and enhanced delivery of public services. ISLA aims to strengthen subnational systems of planning, operations, communication, representation, and citizen engagement, leading to services that more closely respond to all citizens’ needs in health, education, security, justice, and urban services. 468 During the quarter, ISLA conducted provincial budget training for 45 public financial management committee participants from nine provinces. ISLA advisors finished drafting provincial-governor office guidelines and submitted the draft for review. ISLA also supported a town hall meeting in Badghis Province to discuss the Brussels Conference and the Afghan government’s Citizen Charter. Approximately 204 participants—including 32 women— attended the meeting. 469 Strong Hubs for Afghan Hope and Resilience The objective of the $73 million SHAHAR program is to create well-governed, fiscally sustainable Afghan municipalities capable of meeting the needs of a growing urban population. The urban portion of Afghanistan’s population has risen from 22% in 2004 to an estimated 25% in 2016/2017. Targeted support to municipal governments, as well as to the deputy 132 SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION
GOVERNANCE ministry of municipal affairs and municipal advisory boards, aims to improve municipal financial management, urban service delivery, and citizen consultation. 470 As of the end of October, SHAHAR-supported municipalities collected $27,073,939 in revenues for the current Afghan fiscal year. This represents an 8% increase in revenues collected in the previous year, but only 42% of the expected revenue for the current fiscal year that ends December 21. Only two SHAHAR-supported municipalities are on track to achieve their revenue targets. SHAHAR-supported municipalities executed $22,301,207 of their budgets, representing 77% of expenditures compared to the previous fiscal year, but only 30% of the current fiscal year’s budget. 471 As of December 31, 2016, SHAHAR-supported municipalities collected an additional $5 million in revenue for 2016 as compared to 2015, a 21% increase. 472 RECONCILIATION AND REINTEGRATION The U.S. and Afghan governments agree that the best way to ensure lasting peace and security in Afghanistan is reconciliation and a political settlement with the Taliban. 473 According to the United Nations Secretary-General, there was no substantive movement towards a peace process between the Afghan government and the Taliban this quarter. 474 Taliban leaders reportedly believe that the 2016 fighting season was a success and, for the time being, there is no incentive to enter into a strategic negotiation process. 475 On December 23, the Taliban again publicly rejected peace talks, reiterating their longheld stance that talk of peace and reconciliation is “meaningless” as long as foreign forces remain in Afghanistan. 476 On December 2, General John Nicholson, the commander of U.S. and NATO forces in Afghanistan, labeled Russia, Pakistan, and Iran as malign actors that enable insurgent or terrorist groups in Afghanistan. Nicholson said that Russia lends public legitimacy to the Taliban, which undermines the Afghan government and NATO efforts to stabilize Afghanistan. 477 On December 10, Russia’s ambassador to Afghanistan testified before Afghanistan’s upper house of parliament that Russia maintained contact with the Taliban to ensure the safety of Russian nationals and encourage the Taliban to engage in peace talks with the Afghan government. He expressed annoyance with Afghanistan’s critique of Russia’s approach, arguing that other countries have similar relations with the Taliban. 478 The Afghan government maintains that any outside contact with the Taliban, without the prior knowledge and approval of the Afghan government, is a legitimization of terror and a breach of Afghanistan’s sovereignty. 479 On December 27, the governments of Russia, China, and Pakistan met in Moscow to discuss the security situation in Afghanistan. The three countries agreed to a “flexible approach” to remove certain Taliban members REPORT TO THE UNITED STATES CONGRESS I JANUARY 30, 2017 133
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SIGAR JAN Special Inspector General
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JOWZJAN BALKH KUNDUZ TAKHAR BADAKHS
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This quarter, SIGAR issued 13 audit
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EXECUTIVE SUMMARY • the abandonme
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TABLE OF CONTENTS SECTION 4 203 OTH
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1AFGHAN PROCUREMENT REFORM 1
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AFGHAN PROCUREMENT REFORM THE NEED
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AFGHAN PROCUREMENT REFORM from ente
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AFGHAN PROCUREMENT REFORM Conflict:
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AFGHAN PROCUREMENT REFORM that alth
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AFGHAN PROCUREMENT REFORM system fr
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AFGHAN PROCUREMENT REFORM identify
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AFGHAN PROCUREMENT REFORM THE STAKE
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2 SIGAR OVERSIGHT 17
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SIGAR OVERSIGHT ACTIVITIES SIGAR OV
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SIGAR OVERSIGHT ACTIVITIES on TFBSO
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SIGAR OVERSIGHT ACTIVITIES Performa
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SIGAR OVERSIGHT ACTIVITIES were pro
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SIGAR OVERSIGHT ACTIVITIES Financia
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SIGAR OVERSIGHT ACTIVITIES 1. Deter
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SIGAR OVERSIGHT ACTIVITIES is now t
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SIGAR OVERSIGHT ACTIVITIES Review L
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SIGAR OVERSIGHT ACTIVITIES indefini
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SIGAR OVERSIGHT ACTIVITIES their co
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SIGAR OVERSIGHT ACTIVITIES communit
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SIGAR OVERSIGHT ACTIVITIES advocate
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SIGAR OVERSIGHT ACTIVITIES remote o
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SIGAR OVERSIGHT ACTIVITIES The Cour
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SIGAR OVERSIGHT ACTIVITIES at both
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SIGAR OVERSIGHT ACTIVITIES restitut
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QUARTERLY HIGHLIGHT Louis M. Bailly
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SIGAR OVERSIGHT ACTIVITIES FIGURE 2
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QUARTERLY HIGHLIGHT Suspensions and
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QUARTERLY HIGHLIGHT appealed a susp
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SIGAR OVERSIGHT ACTIVITIES the Unit
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SIGAR OVERSIGHT ACTIVITIES identify
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3RECONSTRUCTION UPDATE 63
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RECONSTRUCTION UPDATE RECONSTRUCTIO
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RECONSTRUCTION UPDATE that project
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STATUS OF FUNDS STATUS OF FUNDS To
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STATUS OF FUNDS Security Forces Fun
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STATUS OF FUNDS Congress appropriat
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STATUS OF FUNDS ASFF BUDGET ACTIVIT
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STATUS OF FUNDS USAID INCLE State A
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DOD STATUS OF FUNDS CERP DOD DOD DR
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Page 95 and 96: SECURITY SECURITY KEY ISSUES AND EV
Page 97 and 98: SECURITY FIGURE 3.26 AVERAGE NUMBER
Page 99 and 100: SECURITY investigation concluded th
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Page 103 and 104: SECURITY System for the ANA’s Nat
Page 105 and 106: SECURITY FIGURE 3.27 RS TRAIN, ADVI
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Page 109 and 110: SECURITY TABLE 3.8 ANDSF ASSIGNED F
Page 111 and 112: SECURITY function without Coalition
Page 113 and 114: SECURITY international scholarships
Page 115 and 116: SECURITY TABLE 3.10 COST OF U.S.-FU
Page 117 and 118: SECURITY Utility in Kabul ($314,325
Page 119 and 120: SECURITY An AAF specialist adjusts
Page 121 and 122: SECURITY According to USFOR-A, the
Page 123 and 124: SECURITY A Women’s Participation
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Page 129 and 130: GOVERNANCE GOVERNANCE KEY ISSUES AN
Page 131 and 132: GOVERNANCE U.S. RECONSTRUCTION FUND
Page 133 and 134: GOVERNANCE TABLE 3.14 USAID ON-BUDG
Page 135 and 136: GOVERNANCE the ARTF is the largest
Page 137 and 138: GOVERNANCE Of 59 conditions defined
Page 139 and 140: GOVERNANCE TABLE 3.15 USAID CAPACIT
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Page 147 and 148: GOVERNANCE TABLE 3.17 RULE OF LAW A
Page 149 and 150: GOVERNANCE ADALAT found in the cour
Page 151 and 152: GOVERNANCE without proper vetting o
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Page 155 and 156: GOVERNANCE TABLE 3.18 USAID GENDER
Page 157 and 158: GOVERNANCE service is organized on
Page 159 and 160: ECONOMIC AND SOCIAL DEVELOPMENT ECO
Page 161 and 162: ECONOMIC AND SOCIAL DEVELOPMENT Agr
Page 163 and 164: ECONOMIC AND SOCIAL DEVELOPMENT TAB
Page 165 and 166: ECONOMIC AND SOCIAL DEVELOPMENT $7.
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Page 169 and 170: ECONOMIC AND SOCIAL DEVELOPMENT FIG
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ECONOMIC AND SOCIAL DEVELOPMENT wit
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COUNTERNARCOTICS COUNTERNARCOTICS K
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COUNTERNARCOTICS opium-poppy cultiv
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COUNTERNARCOTICS UNODC estimates th
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COUNTERNARCOTICS The program pays a
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COUNTERNARCOTICS remained the top o
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COUNTERNARCOTICS Community Based Ag
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COUNTERNARCOTICS activities include
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COUNTERNARCOTICS in 2016 at an addi
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COUNTERNARCOTICS TABLE 3.6 INTERDIC
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OTHER AGENCY OVERSIGHT CONTENTS OTH
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OTHER AGENCY OVERSIGHT COMPLETED OV
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OTHER AGENCY OVERSIGHT U.S. Departm
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OTHER AGENCY OVERSIGHT Audit of Afg
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OTHER AGENCY OVERSIGHT equipment su
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APPENDICES AND ENDNOTES CONTENTS Ap
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APPENDICES APPENDIX A CROSS-REFEREN
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APPENDICES TABLE A.1 (CONTINUED) CR
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APPENDICES TABLE A.2 CROSS-REFERENC
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APPENDICES APPENDIX B U.S. FUNDS FO
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APPENDICES APPENDIX C SIGAR WRITTEN
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APPENDICES Ongoing Financial Audits
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APPENDICES APPENDIX D SIGAR INVESTI
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APPENDICES TABLE D.1 SPECIAL ENTITY
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APPENDICES TABLE D.1 (CONTINUED) SP
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APPENDICES TABLE D.1 (CONTINUED) SP
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APPENDICES ACRONYM OR ABBREVIATION
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ENDNOTES 1. Transparency Internatio
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ENDNOTES 100. General John Nicholso
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ENDNOTES 226. RS, email to SIGAR, 1
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ENDNOTES 380. UNMAS, Afghan Civilia
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ENDNOTES 483. Voice of America, “
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ENDNOTES 596. SIGAR, analysis of MO
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ENDNOTES 698. USAID, OI, response t
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ENDNOTES 794. UN, Report of the Sec
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A worker looks down on an Afghan va
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SIGAR

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