The Institute for State Effectiveness founded by President Mohammad Ashraf Ghani made significant profit from governmental government during the recent years, it has been reported.

The Tolo News reported late on Sunday that President Ghani established the institute in the United States a year before 2014 presidential elections.

The institute reportedly made significant profit from governmental contracts during the recent years.

However, the website of the institute states that Mohammad Ashraf Ghani and Clare Lockhart jointly established the Institute for State Effectiveness in Washington in 2005.

Furthermore, senior presidential adviser Humayoun Qayoumi received enormous amounts of money from the institute despite working during the years of 2016 and 2017 when he was serving as a government official.

According to reports, Qayoumi received $105,000 in the year 2016 from the Institute for State Effectiveness and $255,000 in 2017.

Meanwhile, former lawmaker Haji Nesar Ahmad Faizi said the steps by President Ghani is a clear misuse of his authority and are against the procurement laws of Afghanistan.

Faizi further added as per the procurement law no governmental official or employee including their close family members can obtain projects from the government.

Procurement law and procedures

According to procurement law and procedures, each bidder must complete a specific form ‘Declaration of Conflict of Interest’ before starting the bidding process.

Another part of the procurement procedure states that none of the procurement department workers including the director approving the bids should have any kinds of relations that could lead to conflict of interest.

This comes as the National Procurement Commission led by President Ghani approves contracts worth more than 100 million Afghanis.

The 112th decree of the procurement procedure states that all employees of the procurement department including the delegations tasked with review, bid opening, grants managers and members of the national procurement commission must disclose all clear activities that lead to conflict of interest in Form#7, before starting or approving all kinds of procurement activities.

However, the National Procurement Department and the Office of the President have not commented in this regard so far.


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