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&lt;p&gt;A report to be released today by the US federal government will depict a culture of corruption at Afghanistan&#39;s central bank, the &lt;em&gt;Wall Street Journal&lt;/em&gt; reports.  Ahead of the release, a government spokesman confirmed that Deloitte&#39;s contract to &quot;help clean up Afghanistan&#39;s poorly regulated financial sector&quot; had been terminated as a result of the firm&#39;s &quot;failure to flag corruption&quot; at the bank.&lt;/p&gt;&lt;p&gt;&lt;img style=&quot;float: left;&quot; src=&quot;http://www.vault.com/VCM/articles/kabulbank.png&quot; alt=&quot;&quot; width=&quot;262&quot; height=&quot;349&quot;&gt;Kabul Bank, Afghanistan&#39;s largest private lender, is in the midst of a corruption-fueled meltdown that has seen the institution lose nearly $1 billion in recent years.   According to the &lt;em&gt;Journal&lt;/em&gt;, the US Agency for International Development (USAID) hired Deloitte in 2009 to overhaul the Bank&#39;s technology infrastructure, seeking better transparency amidst reports that shareholders engaged in &quot;hundreds of millions of dollars worth of financial impropriety.&quot;&lt;/p&gt;&lt;p&gt;Now, a USAID investigation has concluded that the consulting firm failed to do enough to accurately identify and report clear instances of corruption.  Deloitte&#39;s five year, $92 million contract with Kabul Bank was terminated as a result.  A USAID spokesman suggested that Deloitte&#39;s efforts were ineffective.  &quot;We don&#39;t believe that Deloitte can be held responsible for the fraud at Kabul Bank,&quot; said USAID&#39;s Lars Anderson, &quot;but we do want our technical assistance to be as effective as possible.&quot;&lt;/p&gt;&lt;p&gt;Deloitte contested Anderson&#39;s charges.  &quot;Deloitte Consulting&#39;s performance of its obligations&amp;mdash;including communications&amp;mdash;was consistent with the terms of its engagement,&quot; a spokesman said, noting that the firm would cooperate with USAID to exit Kabul Bank responsibly.&lt;/p&gt;&lt;p&gt;The &lt;em&gt;Journal&lt;/em&gt; reports that Kabul Bank officials have regularly abused resources&amp;mdash;much of which came from the IMF, which has since withdrawn its financial support&amp;mdash;to support luxurious lifestyles and finance personal business ventures on the side.&lt;/p&gt;&lt;p&gt;With access to employee communication records, including emails, USAID concluded that Deloitte should have been aware of these transgressions, the likes of which have &quot;brought Afghanistan&#39;s financial sector to its knees.&quot;&lt;/p&gt;&lt;p&gt;Deloitte will continue to serve USAID and the Afghan government through a series of other contracts.&lt;/p&gt;&lt;p&gt;&lt;strong&gt;For more information:&lt;/strong&gt;&lt;br&gt; &lt;em&gt;WSJ&lt;/em&gt;&lt;/p&gt;

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