Millions of dollars in US aid is flowing into Afghanistan even though the ministries receiving the funds are incapable of managing such large sums of money, a US official report said Thursday.

Despite moves by the US Agency for International Development (USAID) to boost safeguards over direct assistance to the Afghan government, "a number of troubling issues remain," a special watchdog found.

The US has committed some $1.6 billion in direct aid to the Afghan government this year to fund some 18 programs across 10 ministries.

But according to the Special Inspector General for Afghanistan Reconstruction, "USAID contractors assessed 16 Afghan ministries and found they are unable to manage and account for funds."

"USAID's own risk reviews of seven Afghan ministries concluded each ministry is unable to manage US direct assistance funds," it added, also pointing to a high level of corruption among Afghan officials.

Despite its findings, USAID "waived its own requirements" for direct assistance and has "not required the Afghan ministries to fix most of the risks identified prior to receiving US money."

The watchdog also maintained that USAID had sought to hide its findings from Congress, which is responsible for setting US budgets.

But State Department spokeswoman Jen Psaki hit back, saying that "there are not billions of US assistance dollars going straight into Afghan government coffers."

"On the contrary, we have disbursed less than $300 million through rigorous accountable mechanisms that maintain US government control of funds throughout the process," she told reporters.

"All of our programs are managed by US officials, whether they use Afghan government systems or not."

The audit comes amid a standoff between Washington and Afghan President Hamid Karzai over a security pact to safeguard any US troops remaining in the country after international combat forces are withdrawn at the end of this year.

Karzai is refusing to sign the deal painstakingly drawn up over months with US Secretary of State John Kerry, in a move which the US says jeopardizes proper planning for a withdrawal.

The audit by the watchdog, known as SIGAR, may well exacerbate the situation as Karzai has long accused Washington of trying to undermine his authority.

SIGAR recommended that USAID should draw up a risk mitigation plan for each Afghan ministry.

But Psaki said that trying to "fix every problem in each ministry before we set up programs" was "not prudent use of US government resources."

Ex-Canadian top general in Afghanistan detained: media
Ottawa, Canada (AFP) Jan 30, 2014 - A former Canadian brigadier-general and head of Canadian forces in Afghanistan is being detained in Afghanistan for alleged gun smuggling, media said Thursday.

Daniel Menard resigned from the military after pleading guilty in 2011 to having an affair with a female corporal under his command on active duty.

He now works for security firm Garda World, whose spokesman Joe Gavaghan told the Toronto Star newspaper Menard was picked up by Afghan authorities on or about January 12 after a meeting with Afghan officials.

"He was leaving a meeting at the ministry office and a couple of officials approached him. They said, 'We've got a problem with something and we'd like you to come with us to clear it up.' Off he went and the next thing he knew he was going to be detained until they cleared it up," said Gavaghan.

Gavaghan said his detention relates to an "administrative misunderstanding" over the private security firm's licensing to operate in the country.

"It's been cleared up and we believe that the individual is going to be released very shortly," he added.

The daily Globe and Mail cited Kabul police chief General Zaher Zaher saying Menard was being held for "gun smuggling."

The Canadian government told AFP, "Consular services are being provided to a Canadian citizen who has been detained in Afghanistan."

However it would not confirm the person's identity nor the circumstances surrounding his detention.

Menard was relieved of his command of Canadian troops responsible for Kandahar region in May 2010 due to the affair with the female master corporal.

The Canadian Forces forbid intimate relationships during deployments.

Canada ended its combat mission in Afghanistan a year later in 2011, closing the curtain after nine years and the deaths of 157 soldiers.

Menard has managed Garda's operations in Afghanistan since November 2011, according to the company's website.