AFGHANISTAN - Apr 4 - Karzai Seeks More Control Of Afghan Aid Budget.

Pres Hamid Karzai, calls on international donors to give his government more control over the country's aid budget and help it scrutinise reconstruction spending to make sure foreign money is not wasted. His appeal, at the start of a three-day aid conference in the capital, comes as Kabul and NGO's crossed swords over legislation that would sharply curb the latitude of NGOs operating in the country. "The government must become the anchor for a more integrated, transparent and accountable development effort", Karzai told donor representatives. Karzai's comments reflect resentment at the government's limited control over the billions of aid dollars that flow into the country and a conviction among Afghans that foreign aid organisations are profligate. The administration feels rising pressure to show results to a public that largely lacks access to electricity, water or paved roads. FM Anwar ul-Haq Ahady, said only $1.4 bn of the country's $4.9 bn budget passed through government coffers last year; the rest went directly from donors to aid agencies. Of $4.7 bn budgeted for this year, the government would handle about $1.6 bn. Ahady said donors' concerns about the government's ability to spend efficiently and transparently did not justify leaving Kabul out of the aid loop. Karzai said: I want the international community to concentrate on building Afghan capacity...Imported capacity from abroad is not a long-term solution for our problems". The cabinet last week approved a law that would prevent NGOs from bidding for government contracts. The law sparked furore among the aid community and Karzai agreed on Apr 3 to review it.