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SIGAR Reports Up to $29.2 Billion Lost to Waste, Fraud and Abuse in Afghanistan Reconstruction

Washington: The Special Inspector General for Afghanistan Reconstruction (SIGAR) has released its Final Report on Seventeen Years of Reconstruction Oversight, revealing that between 2002 and mid-2021 the United States appropriated $144.7 billion for reconstruction efforts in Afghanistan, while SIGAR identified 1,327 instances of waste, fraud and abuse amounting to $26.0±$29.2 billion.

According to the executive summary, waste accounted for 93% of all identified losses. Since 2009, SIGAR has issued nearly 900 audits, evaluations, inspections, alert letters, lessons-learned reports and quarterly reports, uncovering 1,911 internal control weaknesses. Almost 1,500 recommendations were made to improve oversight, recover funds and enhance program effectiveness, with 1,085 implemented by U.S. agencies as of June 30, 2025.

Oversight findings included over $500 million in salary overpayments by the U.S. Department of Defense to the former Afghan government due to weak internal controls. SIGAR­s audit and inspection work contributed to more than $2.5 billion in cost savings, including $541 million in questioned costs, and played a role in preventing further risks³such as the remediation triggered by the discovery of defective culvert grates linked to past U.S. casualties.

SIGAR­s investigative arm secured 171 criminal convictions in the U.S. and Afghanistan, resulting in $1.7 billion in fines, forfeitures, settlements and recoveries. The agency also referred 1,076 individuals and entities for suspension or debarment. Overall, SIGAR estimates that its oversight resulted in over $4.6 billion in savings for U.S. taxpayers.

Despite the Taliban­s takeover in 2021, the United States remained Afghanistan­s largest donor, disbursing more than $3.83 billion in humanitarian and development assistance since then ³ including $120 million in the March 2025 quarter alone. SIGAR continued monitoring U.S. funds routed through international bodies such as the United Nations and World Bank, issuing 24 performance audits since August 2021.

Several recent audits examined Taliban diversion of U.S. assistance, following a 2023 request from the House Foreign Affairs Committee. In March 2025, SIGAR reported that the State Department and USAID must strengthen agreements with international organizations to ensure U.S. funds do not reach terrorist groups. While UN shipments of U.S. currency helped stabilize Afghanistan­s economy, SIGAR warned of persistent vulnerabilities in aid delivery systems.