Thursday, December 9, 2010

US cuts Afghan firm

A big Afghan company owned by relative of President Hamid Karzai, describing a move US officials began the trial of blacklist KABUL - the U.S. military as an important step, American resources from fuelling corruption and attempted murder the Taliban to stop.

AFCONTRACTjpAssociated Press Secretary of Defense of Robert Gates held a press conference with Afghan President Karzai in Kabul Wednesday.

The proposed ban on the U.S. Government's work by the Watan group - which is cousins owned by two Mr Karzai's and officials believe the President's half-brother - arises from the activities of its security arm that almost every coalition supply protects convoy on the highway between Kabul and the southern city of Kandahar.

A Congress in the June report said Watan risk management control over the lucrative business of security along the highway 318-mile won through bribery Afghan officials and Taliban commanders. Companies that want to move goods by road must either numbers Watan or his heavily armed guards to fight according to the report.

The boss which goes by the name Commander Ruhullah arm - a man Watan's security and safety on the motorway - is known as "the butcher" said violent ways, including targeting civilians, the congressional report for his and his men.

Ensure the company's open routes for opium trafficking in human beings, another important source of cash for the uprising, transport also hold a U.S. official said.

A man who answered the phone at Watan's Kabul headquarters and gave his name as Simon Hilliard said Wednesday that the company would comment not. Mr Hilliard identifies a profile on the site LinkedIn as Watan's Managing Director.

Letters notifying Commander Ruhullah and Watan's two owners - the brothers Ahmed and Popal Rashid, cousins Mr Karzai - which were so-called exclusion reasons of your company that all future contracts would bar, sent by the U.S. Army on Dec. 6.

Interferes with the move of the company's subsidiaries and affiliated companies, the fuel supply, Telecom, construction and steel companies.

Watan has 30 persons entitled to appeal before the ban takes effect. The U.S. official said Watan nor Mr Karzai's Office had addressed the proposed ban.

The move to American relations Watan sever is confirmation by the United States, some of the billions of dollars that here every year at least indirectly spends insured corruption within the Afghan Government and the rebels trying to overthrow it.

If finalized, Watan seventh Afghan company or individual this year be banned by U.S. troops in Afghanistan. But the others were relatively small and had a limited impact.

In contrast, Watan, $60 million in annual revenue and 1,000 employees has after a contract awarded in July by the US Army.

Determine how much work gets Watan from the United States treaties - is difficult because much of the business comes from subcontracting work for primary contractors, treated, listed in databases of the Federal Government but would be subject to a blacklist.

The move to some extent confirmed Mr Karzai's argument, the foreigners are responsible for much of Afghanistan corruption and private security companies are among the worst offenders. He has orders in the course of time private security companies resolve most issued.

But the move will also signaled that the problem of corruption include business from people with ties to the President.

The U.S. official said "a demonstration that we aren't going to the funding to keep damaged players no matter what their political relations are" finished bar ring Watan.

Afghanistan senior Minister, Hedayat Amin Arsala which oversees governance issues, said on Wednesday that the Government have Watan's proposed black list know. Kabul supports every movement to root out corruption and limit the use of private security firms, he said.

Another official, a senior consultant, Mr Karzai said in an interview before the proposed ban could result in measures to target Watan from the Presidential Palace to blowback.

"We are not naive, we understand it costs, what we do," said the U.S. official.

The President half brother, Ahmed Wali Karzai, the President of the provincial Council Kandahar and a large power broker in southern of Afghanistan, is believed own participation to Watan, U.S. officials say. He has refused links to Watan, and respond to requests for comment.

Afghan and foreign critics have long complained that coalition of of his need more than 200 remote outpost to his declared intention to take action against corruption can deliver asset.

"We hear a lot, ISAF at the root of corruption. "This is our signal that there a shift underway, that we very seriously", said the U.S. official.

Watan's owner of their alleged misconduct in interviews with Congressional investigators, detailed make the black list "a case quite open and closed", said the U.S. official.

The congressional report came out as task forces set up the coalition had practices, the use of private security companies and look at corruption and governance in General. The blacklist was the work of these task forces.

The U.S. officials said more such actions were planned against the Afghan and international contractors.

He said, the coalition was coming up with alternatives to protecting convoys on the highway that cuts through country that controlled by the Taliban.

Write toMatthew Rosenberg at matthew.rosenberg@wsj.com


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