Friday, October 1, 2010

US Investigates Karazi Brother


The US has been officially and covertly conducting investigations into the business dealings of Mahmoud Karzai, an older brother of Afghan president Hamid Karzai. Mahmoud Karzai has long been suspected of involvement in illegal activities. His has a strong status in Afghanistan, recognized as one of the country's most powerful and wealthy businessmen. He owns 7% of the shares in Kabul Bank, making him one of the largest shareholders there, and is owner to various assets in Afghanistan and the world. Among these are a series of restaurant chains in the US before September 11, the only Toyota dealership in Afghanistan, and Afghanistan's only cement factory. He has been criticized for using his position as the president's brother to participate in inside dealings over commodities such as real estate. Most recently, he has come under attack for alleged involvement in the risky business ventures and other activities that led to the run on Kabul Bank in early September. The National Security Agency (NSA) has been conducting electronic eavesdropping on Mahmoud for several months to gather evidence of involvement in illegal activities. This is part of a new anti-corruption program being set up by the US and Afghans to investigate corruption in the Afghan government.
This news comes at a dampening of relations between the US and Afghan governments. The US has publicly urged President Karzai to end corruption in his administration, a move which the Afghan president seems hesitant to do. The Afghan government's reputation has been hurt considerably by charges of corruption, which stem from allegations of voter fraud in last year's presidential election. Karzai recently pardoned a government official who had been convicted on corruption charges, causing greater strain with the US.  If the Afghan government is unable to effectively deal with corruption within it's ranks, it could create a greater divide between the government and the people, which could lead them to support the Taliban or to just not support its government at this crucial time.
Information for this article came from The New York Times

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