This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS KABUL 000589 
 
SIPDIS 
 
DEPT FOR SA/FO AMBASSADOR QUINN, S/CT, SA/A 
NSC FOR AHARRIMAN, KAMEND 
CENTCOM FOR POLAD, CG CFA-A, CG CJTF-76 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM IR RS BO AF UNGA SEP
SUBJECT: MINISTRY OF ECONOMY DISSOLVES 1,620 NGOS 
 
¶1.  (U)  SUMMARY.  Following a Feb 4 deadline, the Minister 
of Economy (MoE) Mir Mohammad Farhang announced that some 
1,620 NGOs had been dissolved for not re-registering with the 
MoE as required by the Law on NGOs, which was enacted in June 
¶2005.  Current records indicate that there are 556 NGOs 
registered with the MoE, (367 national and 189 
international.)  The International Center for Not-for-Profit 
organization noted that the action of the MoE is fully 
compliant with the law.  We do not expect this to have a 
significant impact on the operations of the NGO community in 
Afghanistan.  END SUMMARY. 
 
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BACKGROUND 
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¶2.  (U)  In June 2005, President Karzai decreed the Law on 
NGOs, which required all existing NGOs to re-register within 
six months of its enactment.  According to Article 47.1, "An 
organization that received a certificate of registration 
prior to the enforcement of this Law shall, within six months 
from the enforcement date, submit its re-registration 
application along with relevant documentation to the NGO 
Department of the Ministry of Economy (MoE)."  Article 35 
provides for the dissolution of an NGO, "where the 
organization does not re-register within 6 months.  According 
to Article 47.1 and Article 47.5, if an NGO is denied 
re-registration, the MoE is obliged to submit the grounds for 
denial in writing to the NGO.    (NOTE:  Prior to June 2005 
there were approximately 2,355 registered NGOs operating 
throughout the country and not all had formally registered 
with the MoE.  Some NGOs were registered at the provincial 
and district levels.  END NOTE.) 
 
¶3.  (U)  In a February 7 press release, Farhang stated that 
the MoE had dissolved 1,620 NGOs, (1,497 national and 123 
international), for failing to re-register with his Ministry 
prior to the Feb 4 deadline.  Records from the MoE indicated 
that when the deadline expired, a total of 556 NGOs, (367 
national and 189 international), had re-registered with the 
MoE.  Noting that there were still a number of unregistered 
NGOs in possession of funds from donors for projects yet to 
be implemented, Farhang stated that those NGOs would be 
identified, pursued, and punished for not fulfilling their 
commitments. 
 
¶4.  (U)  Comment.  This is the second incident involving NGOs 
within the past year.  In early 2005, then-Minister of 
Planning Ramazan Bashardost banned the activities of some 
1,935 NGOs on charges of corruption and looting of funds that 
were earmarked for the reconstruction of Afghanistan.  When 
he failed to win support from the newly formed cabinet, 
however, Bashardost resigned and a compromise was reached in 
the form of the June 2005 Law on NGOs.  While Farhang's 
actions may be perceived as similar to  Bashardost's, they 
are actually quite different as Farhang's actions are within 
the law and Bashardost's were based on emotions.  Although 
the number of NGOs that were registered before the enactment 
of the Law on NGOs (June 2005) differs from that quoted by 
the MoE, some NGOs and businesses that were registered as 
NGOs have not attempted to re-register or may have registered 
as businesses.  The number of successfully registered NGOs is 
well within the expected range, and we have not heard 
complaints from the  NGO community.  End Comment. 
NEUMANN