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Edition: U.S. Article Comments (4) Email Print Reprints Full Focus Editor's choice A selection of our best pictures from the past 24 hours. Full Article Read Obama administration appeals gay marriage ruling 12 Oct 2010 UPDATE 1-Microsoft issues its biggest-ever security fix 12 Oct 2010 Chilean miners freed in "miracle" rescue | 11:20am EDT Gold hits record as Fed signal sinks dollar 11:28am EDT JPMorgan profit jumps on lower loan losses 10:46am EDT Discussed 64 White House reviewing bill’s foreclosure impact 55 Obama administration appeals ruling backing gay marriage 50 Aviation deal clears way for emissions scheme: EU Watched Red faces over top model gaffe Tue, Sep 28 2010 Intel soothes nerves with sales beat Tue, Oct 12 2010 Chile miner rescue rolls on 3:51am EDT Afghan firms said to pay off Taliban with foreign cash Tweet This Share on LinkedIn Share on Facebook Related News Tough terms stymie Afghan talks: Ex-Taliban envoy 6:57am EDT Related Topics World » Afghanistan » By Hamid Shalizi KABUL | Wed Oct 13, 2010 11:39am EDT KABUL (Reuters) - Cash from the U.S. military and international donors destined for construction and welfare projects in restive parts of Afghanistan is ending up in the hands of insurgents, a contractor and village elders said. The alliance of largely Western nations who back President Hamid Karzai and have nearly 150,000 troops on Afghan soil have spent hundreds of millions of dollars on aid and infrastructure since they ousted the Taliban from power in late 2001. However with violence spreading and the insurgency bloodier than ever, some construction firms and workers on development projects say they are having to hand over some of their earnings to insurgents to protect their personnel, projects or equipment. Mohammad Ehsan said he was forced to pay insurgents a substantial part of a $1.2 million contract he won from the U.S. military two months ago to repair a road in Logar province south of Kabul, after they kidnapped his brother and demanded the cash. "You know we need this American money to help us fund our Jihad," Ehsan quoted them saying when he eventually spent over $200,000 of the project money to secure his brother's freedom. Ehsan said the insurgents also demanded the cash be changed out of dollars into Afghan or Pakistani currency, saying greenbacks are "Haram" or forbidden for Muslims. Paying off militants is common across Afghanistan, where it is hard to work in villages or remote areas without greasing the palms of local insurgent commanders, said Ehsan. "We are aware of those kind of reports...contracting methods are definitely considered part of the counterinsurgency effort," said Major Joel Harper, spokesman for the NATO-led International Security Assistance Force, when asked about Ehsan's payment. "Such incidents would be investigated, and we have measures in place to try and prevent these things happening." A U.S. Senate inquiry into private security firms contracting in Afghanistan found last week that funds had sometimes been funneled to warlords linked to insurgents, but did not look at other possible channels taking foreign money to insurgent groups. LEVY EVEN ON SEWERS The Taliban regularly attack supply convoys and development projects as well as military targets, but spokesman Zabiullah Mujahid denied the group extorts money from contractors, saying other elements may use the Taliban name to defame them. "It is totally baseless, we don't need any money from any organizations' that are linked to the invading force," he told Reuters by telephone from undisclosed location. "The people support us willingly and we will continue our Jihad against all occupying troops and their contractors." But even elders from Provincial Development Shuras -- traditional local councils adapted to foster development -- that receive cash for small-scale projects in their villages, say they are not immune to the extortion. 1 2 Next World Afghanistan Comments See All Comments (4) | Post Comment Oct 13, 2010 6:51am EDT This “foreign cash” comes out of my pocket! We need to get out of both Iraq and Afghanistan. It’s insane to think we can change an ignorant population. Just look at the U.S.!!! tgs10 Report As Abusive Oct 13, 2010 8:08am EDT If we pull out of Afghan now without training the AA and Police we will have a repeat of the Russians exit, the country will go in to civil war, the Talibs will get back in power and it will go full circle. We simply cannot just leave right now it would mean all those soldiers (some of whome are my comrades) would have sacrificed for nothing. I am bored of all this just pull out, think of the people who have died fighting this war. We need to install hope in to the Afghans and train them to produce the goods against the Talibs which will in turn install confindence in to the local civilians. Just my opinion. debater123 Report As Abusive Oct 13, 2010 9:32am EDT Debater123 Your opinion in all honours… but. Suppose youâ€™re running up against a rock face, the bottom of a mountain. Again and again you hit it head on, you have a bloody face and broken elbows bloody stumps. The mountain hasnâ€™t given you an inch, quite the contrary, it drops rocks on you. Your efforts are in vain, that is clear. Do you keep it up or cut your losses before you lose worse? Wake up. All youâ€™re doing is funding your enemy, youâ€™re feeding the Taliban, with cash and the lives of your soldiersâ€¦ and what for? There is no winning this warâ€¦ obviously. lexomm Report As Abusive Oct 13, 2010 11:21am EDT You can’t win in a country dominated by ignorance, corruption, poor infrastructure, and religious fervor. The U.S. does not have a responsibility to build Afghanistan or attempt (keyword – attempt) to create a constitutional republic. Our mission was to find al Qaeda and destroy it and the Taliban in the process. At some point, that mission became skewed and we are now stuck in a Catch-22 quagmire. finneganG Report As Abusive See All Comments (4) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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