MEC Vulnerability to Corruption in the importation & supply of fuel and liquid gas. Afghanistan, 2016

In general, this Special Report shows that vulnerabilities for corruption in the importation process are widespread and serious, and behind this are the hands of a large criminal patronage network which exists both inside and outside the country, and has even infiltrated the government. This Report indicates that in the past 14 years, there have been no determined efforts to improve all the entities involved in the importation of fuel and liquid gas, particularly the Afghanistan Fuel and Liquid Gas Enterprise (AFLGE). Those interviewed as part of the preparation of this Report believe that the government’s unwillingness to make the operations of AFLGE consistent with the Constitution has hampered its development. According to AFLGE’s new Director, over the last decade the Enterprise was unable to cover its administrative expenditures with sufficient revenue. AFLGE was created as a profit-making entity but now is in debt AFN 4 billion. Figures provided by AFLGE show that the amount of fuel import revenues for 2015 were USD 21.3 million, however, AFLGE’s reported actual revenue that year was USD 3.34 million (AFN 229 million), and that USD 17.96 million was embezzled. It is worth mentioning that the USD 21.3 million in revenue was collected, but disappeared because there is no proper financial system in AFLGE.