World Bank Misconduct in Afghanistan

The case of UNICON versus the World Bank in Afghanistan stands as a stark illustration of a British consulting firm’s battle to uphold integrity in the face of systemic corruption, with the World Bank, an institution purportedly dedicated to good governance, emerging as an antagonist. UNICON, engaged under a World Bank-financed project to oversee a crucial gas pipeline initiative, soon found itself ensnared in a nightmare of extortion, deceit, and betrayal.

From the outset, UNICON was subjected to relentless pressure by Afghan state officials to partake in corrupt practices, including demands for bribes disguised as spurious tax disputes. UNICON’s steadfast refusal to engage in such illicit activities resulted in severe repercussions, including the unlawful withholding of payments and the confiscation of its products.

In an attempt to retain UNICON’s essential expertise – vital for securing $145 million in financing – the World Bank provided explicit written assurances, pledging to protect UNICON. These commitments included a guarantee that UNICON would not suffer financial losses due to the state’s actions and a promise to extend the firm’s contract for additional vital services. Far from being mere verbal assurances, these declarations constituted binding commercial obligations, creating a legitimate expectation that the Bank would honour its commitments. However, once UNICON delivered the crucial reports and technical work that both the World Bank and the Afghan Government desperately required, the Bank shamelessly reneged on its promises. Instead of supporting its contractor, the World Bank chose to align itself with corrupt state officials, thereby facilitating and legitimising their illicit actions.

This betrayal was not simply an act of bad faith; it was a calculated move to placate corrupt state officials at UNICON’s expense, leaving the firm in financial ruin. Despite being legally obligated to honour its promises, the World Bank chose to protect and profit from the very corrupt practices it was supposed to prevent. Not only did the Bank retain the critical technical reports and project deliverables produced by UNICON, but it also withheld payments owed for these products, flagrantly disregarding a tribunal’s ruling (PCA Case No. 2020-33) that mandated compensation to UNICON for all its works.

As UNICON spoke out against injustice, the unlawful practices of the state, the World Bank’s complicity in corruption, and its breach of commercial obligations, the World Bank aligned itself with corrupt Afghan officials. Together, they embarked on a campaign of hostility, enlisting the Bank’s investigative unit in a calculated effort to discredit and ultimately destroy UNICON, silencing it permanently to conceal the Bank’s own misconduct.

UNICON was left to wage a gruelling battle against both the corrupt state apparatus and the World Bank. The firm’s ordeal culminated in costly legal proceedings as it sought to recover funds that the World Bank, in an act of extraordinary audacity, had appropriated for itself. The Bank’s actions not only demonstrated its willingness to profit from state corruption but also underscored its blatant disregard for justice and obligations. This unethical profiteering highlights the World Bank’s complicity in perpetuating state corruption.

UNICON refused to surrender, even in the face of the combined might of the World Bank and the corrupt state apparatus. This relentless struggle came at a high cost, claiming the lives of Mr Kerry Walls from New Zealand and Mr Assadullah Noori from Afghanistan – tragic testaments to the severe consequences of this confrontation and a stark revelation of the World Bank’s true nature.

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