MEC Inquiry into the Afghanistan Comprehensive Agriculture Program - CARD-F

CARD-F was established to promote the commercialization of agriculture in Afghanistan and foster private investments in that sector. Although the program is aligned with the National Priority Programs and the National Development Strategy, this inquiry clearly illustrates how flawed oversight and poor contractual practices can undermine the efficiency of development assistance and even pave the way for corruption. The design of the program and the governance structure resulted in foreign companies receiving the majority of the funds allocated to this goal. Only 33 percent of the funds in Phase I were actually used for investment in the end users.In conclusion, MEC has confirmed that many of the whistleblower concerns about problems in CARD-F were justified, with significant instances of malpractice and potential illegality in the governance and operation of the CARD-F Program. At least two of the whistleblowers were fired, and others felt they had to leave, and left. MEC recommends that DFID examine how it can build a culture in its projects and programs that genuinely welcomes and protects whistleblowers, and is genuinely open discussion of weaknesses. Second, while it is clear that Phase II is operating differently from Phase I, which has closed, and that governance practices in Phase II are substantially better than in Phase I, many things do remain the same and many individuals who were party to the earlier failures are still in place. Some of the concerns identified in this inquiry are of an ongoing nature, e.g., the doubtful validity and possible illegality of the employment contracts and the EDP contracting process. MEC expects that DFID will want to commission a review by a fully external party on the totality of Phase II integrity.