money is going to accelerate the disintegration of democratic institutions," warns Charles.

What is happening, Charles says, is the transformation of a poor, war torn country struggling with democracy into a narco state where power emanates from a group of drug kingpins far more powerful than the new government.

The process began in 2001 when the United States forged military alliances with powerful warlords and used their private armies to drive al Qaeda and the Taliban out of the country.

But some of Afghanistan's biggest warlords also happen to be some of the country's biggest drug lords. Now that they are part of the government, often in high places, a few are even charged with eradicating the drug traffic that many people believe they're still involved in.

One former warlord suspected of being involved in the opium trade is Hazrat Ali, whose private army fought against al Qaeda at the battle of Tora Bora. In appreciation of his efforts, he was placed in charge of security for Nangahar province until he resigned recently to run for parliament.

He also happens to be named in a United Nations report as one of the provincial officials suspected of being heavily involved in drug trafficking.

Ali doesn't deny that the heroin business flourishes in the region but denied that he is involved in the trade. "No. You can ask anyone. I am opposed to drugs. If everyone was like me, there wouldn't be an opium plant in Afghanistan."

60 Minuteshad no difficulty finding people to make the allegations; proving them is another matter since there is virtually no criminal justice system in place to pursue them.

In all of Afghanistan there are barely 100 people in jail for drug offenses, most of them small time players.

Afghanistan's President Hamid Karzai, who is considered honest and well intentioned, outlawed the cultivation and trafficking of opium three years ago, but has neither the power nor the prosecutors to enforce it.

"It is the top priority. Not one of the top — the top priority now," says Karzai.

"There have been lots of reports that many of the people in the provinces, many of the former commanders, have been involved with drug trafficking in the past. And some believe still continue to be involved in drug trafficking," Kroft says.