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This is an archive article published on March 6, 2009

Waiter to entrepreneur: Karzai brother has a smooth run,courtesy connections

Eight years ago,Mahmoud Karzai was running a handful of restaurants in San Francisco,Boston and Baltimore.

Eight years ago,Mahmoud Karzai was running a handful of restaurants in San Francisco,Boston and Baltimore. Today,Karzai,an immigrant waiter-turned-restaurant owner,is one of Afghanistan’s most prosperous businessmen.

The older brother of Afghan President Hamid Karzai,Mahmoud Karzai,has major interests in the country’s only cement factory,its dominant bank,its most ambitious real estate development,its only Toyota distributorship and four coal mines.

He and his business partner run Afghanistan’s national chamber of commerce,allowing him to broker deals and lure foreign investors. For executives with problems with the Afghan Government,he is the man to see.

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Karzai attributes his success to having big ambitions and taking on ventures that others saw as too risky. “I’m investing in projects that require real work,” he said in an interview. “I’m in love with the idea that Afghanistan can become a Singapore,a Hong Kong.”

Karzai,though,clearly has exploited his connections to build his business empire. He has collected millions in US Government loans for real estate developments in Kandahar and Kabul,capitalised on a friendship with former Representative Jack Kemp,Republican-NY,for introductions to US officials and international business executives,and benefited from ‘sweetheart deals’ with the Afghan Government.

Karzai’s swift rise has stirred resentment among Afghans,who have grown disaffected with the Karzai Government and its seeming tolerance for insider dealing,favour trading,bribe taking and other unsavoury activities.

Humayun Hamidzada,President Karzai’s spokesman,denied that the President had shown favouritism to his brother.

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Mahmoud Karzai similarly dismissed complaints that he had traded on his family ties. “There is a great amount of jealousy and misinformation about me,” he said in an interview.

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