According to a new assessment done by the Afghanistan Research and Evaluation Unit (AREU), cozy relationships between Balkh provincial officials and private construction companies are pervasive and fueling many land development projects throughout the province.
According to the AREU's report, public infrastructure projects are amongst the most commonly influenced by informal relationships between public officials and private businessmen. Governor Atta Mohammad Noor, the AREU reports, is one of the officials most involved in the suspicious, "symbiotic" relationships.
"Atta and his associated are connected with numerous projects and commercial ventures through a complex and opaque web of companies," the report read. Specifically, and most substantially, the governor is connected to the Khalid bin Walid land development, which is often informally referred to as "Governor Atta's project."
"The project has allowed Atta to simultaneously reward loyalists and build credibility with the general population for such a visible project," said the AREU report.
The Balkh economy has often been touted as one the success stories of Afghanistan since the fall of the Taliban. Although province wide estimates were unavailable, the AREU report puts the annual growth rate of Mazar-e-Sharif, the capital city of Balkh, at 20 percent, almost two-times the national average. Driven largely by contracts and donations from the international community, the Balkh construction sector been one of the strongest contributors to the province's economy and is one of the most active in Afghanistan.
However, the AREU suggests that much of this activity has been fueled by close relationships between provincial government officials and certain construction companies.
"The existence of 504 construction companies in Balkh province is an achievement, but most of the companies are related to local officials of the province," said Mir Ahmad Joinda, the Deputy Director of AREU. The companies with political connections are assumed to be favored in the bidding process for projects.
According to the AREU report, roughly 339,000 jeribs of government land have been appropriated by around 1,500 individuals who have cozy relationships with provincial officials.
"The preferential distribution of plots of land based on personal relationships and in exchange for political favours is widely acknowledged...," assessed the AREU.
However, Zaher Wahdat, the Deputy Governor of Balkh, rejected the Unit's claims wholesale and said no such corruption existed.
"There is no exclusionary investment market in Balkh province. I reject all these claims," Mr. Wahdat said.
While not denying the validity of AREU's findings all together, Afzal Hadid, the head of the Balkh Provincial Council, downplayed the severity and uniqueness of land-grabbing in his province.
"The issue of land-grabbing exists widely throughout the country, and Balkh province is also witness to it," Mr. Hadid said.
The AREU report said that Balkh's construction activity has reduced by 50% since 2010, signaling a slowdown in development work that many fear will only get worse with the drawdown of foreign forces. Even car and residential property sales are down in the province.
Although economic growth in Balkh in recent years may have disproportionately benefited a few powerful officials and businessmen, a significant crash in the economy of the province, and potentially the entire country, could hurt everyone regardless of their connections.