UNDP responds to recent stories on Afghan audit of the Law and Order Trust Fund for Afghanistan (LOTFA)

27 Jun 2012

Under the Law and Order Trust Fund for Afghanistan project, the police force in Afghanistan has grown from around 50,000 to over 135,000 personnel.  Under LOFTA:

  • 80 percent of the more than 135,000 Afghan police receive their salaries directly in their bank accounts through verifiable electronic funds transfer (EFT), whereas five years ago, this figure was less than one percent.
  • The rapid expansion of EFT has significantly reduced the potential for inaccurate payments and in inaccessible regions of the country with no banks, new technology like mobile phone money transfers is being used to minimize risks and fraud.
  • LOTFA has also provided training to 1,700 government officials at the Ministry of Interior in systems and processes for financial management, accounting, human resources, administration, and latest payroll and funds transfer technologies.

UNDP has been hiring external, independent companies to conduct audits In Afghanistan.  This is an essential part of UNDP's internal control mechanism. Following UNDP's strict anti-fraud policy, appropriate temporary and permanent measures are being taken towards concerned contractors and staff as the investigation progresses.

The recent actions reiterate UNDP's zero tolerance of fraud and its commitment to prevent, identify and address all acts of fraud.

The investigations—which began weeks before allegations of fraud first appeared in the media—are conducted confidentially in order to preserve the process’ integrity and to protect the rights of all parties concerned. Its conclusions will be made public once the process is completed.

KPMG Audit Reports | Law and Order Trust Fund for Afghanistan
  • KPMG Auditor's Reports January - December 2011 English
  • KPMG Management Letter English