SMRs and AMRs

Sunday, May 05, 2013

Karzai Says He Was Assured C.I.A. Would Continue Delivering Bags of Cash

By MATTHEW ROSENBERG, NYT

KABUL, Afghanistan — The C.I.A.’s station chief here met with President Hamid Karzai on Saturday, and the Afghan leader said he had been assured that the agency would continue dropping off stacks of cash at his office despite a storm of criticism that has erupted since the payments were disclosed.

The C.I.A. money, Mr. Karzai told reporters, was “an easy source of petty cash,” and some of it was used to pay off members of the political elite, a group dominated by warlords.

The use of the C.I.A. cash for payoffs has prompted criticism from many Afghans and some American and European officials, who complain that the agency, in its quest to maintain access and influence at the presidential palace, financed what is essentially a presidential slush fund. The practice, the officials say, effectively undercut a pillar of the American war strategy: the building of a clean and credible Afghan government to wean popular support from the Taliban.

Instead, corruption at the highest levels seems to have only worsened. The International Monetary Fund recently warned diplomats in Kabul that the Afghan government faced a potentially severe budget shortfall partly because of the increasing theft of customs duties and officially abetted tax evasion.

On Saturday, Mr. Karzai sought to dampen the furor over the payments, describing them as one facet of the billions of dollars in aid Afghanistan receives each year. “This is nothing unusual,” he said.

(More here.)

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