Feral Jundi

Wednesday, January 22, 2014

Industry Talk: The APPF On Collecting Revenue

Filed under: Afghanistan,Industry Talk — Tags: , , , , , — Matt @ 11:37 AM

So here are the latest numbers from the APPF, straight from their press releases. I wanted to put this out there as to what these guys are actually making and how much of a government racket this is.
For 2013, they made 5.5 Billion Afghani or in US dollars, that is 98.8 Million! Where that money will go is anyone’s guess. I am sure some will go to pay salaries and what not, but most will probably go into Karzai’s pockets.
Now get this, for 2014 they are already pulling in some serious cash from all the contracts that companies are required to sign with the APPF if they want security. Here is the quote from the press release site.

Press: what is the economical level of this directorate and how effective is it in economical growth of Afghanistan?

Tabish: since beginning of the year 1392 we have received more than 3 billion and hundred and two million Afghani revenue and spent one billion and seven hundred twenty four million Afghani in admin expenditures and delivered one billion three hundred seventy eight million Afghani to government account.

Yep, and yet the APPF has no competition when it comes to performing security. So they can do whatever they want, and there will be no one else that companies can turn to for providing services. So what can go wrong in this kind of set up? How about people getting killed because of poor services rendered? With that said, I invite companies and contractors to share what their thoughts are on the APPF.  –Matt

 

 

5.5 Billion Afghani revenue of current year
30 December 2013
The Afghan public protection force and security enterprise is profit security organization; it is a pay-for-service Afghan government security service provider underneath the Ministry of Interior that protects people, infrastructure, facilities, construction projects and convoys from these activities brings enormous benefit to state treasury.
In order to understand APPF’s gain and revenue generated this year we have prepared an interview with Hashmatullah Latifi business and finance general director of APPF and draw your attention to it.
Q: First brief us information about personnel and activities of business and finance directorate?
A: business and finance directorate works beneath APPF and has three separated departments in its formations, including finance and accounting, logistics and business departments, these departments perform their affairs in various sectors to prevail for example department of business and accounting plans the budget, revenue and expenses and issue personnel salaries, department of logistics provides APPF’s logistical needs and department of business works in contracts related affair with national and international clients.


Q: what is your biggest gain this year and how much revenue have you received?
A: our biggest gain this year constitute 5.5 billion Afghani revenue, before creation of APPF The money was funneled into the pockets of private security companies, but today we have harnessed it and can deliver to the government account.
we have signed total 484 security contracts with our clients including 20 contracts in governmental projects, 161 contracts with nongovernmental sectors, 86 contracts with international organizations, 6 contracts with ISAF camps and some other contracts with escorting of convoys, based on that our protective personnel provides security services for named agencies in the country. Insha Allah our revenue will reach to 7 billion Afghanis till end of the year.
Q: it has been said that contract of tiger risk management company in command and control unit has been revoked, what is the reason behind that and who has obtained its responsibilities?
A: command and control unit is controlling the supplying convoys across the country; the contract signed with tiger risk Management Company has been revoked due to inability of the company to fulfill its commitments. Cancelation of contracts helped us to save 18 million USD annually, our personnel has the capacity to lead the unit now, I am sure they will perform their work properly.
Q: How successful were you to implement year 1392 plans and what is your future plan?
A: our annual plan of 1392 has completed 95% we have almost reached our goals. Our plan for the year 1393 is ready that contains financial plan, preparation of budget for governmental and nongovernmental projects, security of convoys and review over procedure of boards authority and contracts of leased weapons.
Above all we have prepared APPF’s business plan that will distinguish our performance and will increase our revenue.
Fighting against corruption, correction of security contracts, providing better security services and satisfaction of clients counts our achievements this year and serves as priority.
Q: what plans directorate for business and finance has in hand to prevent unnecessary expenditures?
A: we have appropriate plans in hand to eliminate unnecessary expenditures, out of total 21000 Military and 300 civilian personnel currently serves, we are planning to reduce 1600 people in 2 phase from 14 established divisions as security has improved in Paktia, Nengarhar and Mazar-e-Sharif.
Q: some guards complain from delays in salaries, what you have to say about it?
A: the problem is with their detachments and division representatives who deliver the salary report late, it takes us 2 days to process the salary report and issue the salary for the personnel; we have new procedure and held seminars that will bring changes.
Q: as we know, reward and punishment is one of the most important principal of administrations, is that applicable in your administrations or not?
A: APPF’s Work procedure is in hand, based on that activities of employee will be assessed, individuals who perform their duties in light of law will be rewarded and those who acts against it will be punished.
Q: What is your message for your clients?
A: I call on all merchants and investment agencies to believe on APPF and benefit from security services; we are ready to provide reliable security services for national and international clients to stride on a brighter future.

1 Comment

  1. Originally the company I worked for in Kabul directly employed 8 Afghan’s as security for our compound. We supplied uniforms, training, meals etc at the companies expense. It cost us around US$5000 a month (we paid them pretty well), including costs for training. These guys had been with the company for over 4 years. Then the APPF took over. Their representative decided we needed 12 guards to properly secure the compound. Turned out the guy didn’t have any security experience, he was in charge of getting extra business. Our cost’s tripled, yet we still had to supply uniforms, food etc. We also noticed over time that the guards were replaced with ones we didn’t know. Found out later they were relatives of the local APPF commander.
    The whole system is set up to make money for the Afghan government at the expense of security.

    Comment by Dan — Wednesday, January 22, 2014 @ 10:51 PM

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