- Nov 15, 2006
- 51,102
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- United States
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What have we learned? Have millions of starving children died?
- 2025 Major Bribery Scheme ($550+ Million): A USAID contracting officer (Roderick Watson) and three corporate executives pleaded guilty to a decade-long conspiracy involving bribery to steer at least 14 contracts worth over $550 million. The scheme included manipulating procurement for small business set-asides, with companies admitting liability for bribery and securities fraud. This led to the Small Business Administration rescinding USAID's contracting authority.
- Syria Humanitarian Aid Diversion ($9 Million): A Syrian national (Mahmoud Al Hafyan) was charged with diverting over $9 million in USAID-funded food and medical aid intended for civilians to the Al-Nusrah Front, an al-Qaida affiliate. This involved falsifying records and inflating beneficiary numbers; it is described as one of the largest known diversions of USAID humanitarian aid.
- Pakistan Power Grid Kickback Schemes: Multiple cases include a UK citizen (Stephen Paul Edmund Sutton) sentenced for conspiracy to obtain grant money through fraud and kickbacks on a USAID-funded power distribution program. Separate investigations led to convictions and debarments for kickbacks defrauding U.S.-funded grid projects.
- Housing Allowance Fraud in South Africa: A project director (Ruth Chisina Mufute) was arrested for a nine-year scheme defrauding a USAID implementer of approximately $240,000 by falsely claiming rental housing allowances for a property she owned.
- Internal USAID Employee Misconduct: A USAID Foreign Service Officer was terminated after an OIG investigation found submission of fraudulent travel receipts, military orders, and allowance claims, resulting in a bill of collections for over $4,000.
- Syria Cross-Border Aid Collusion (Ongoing Since 2015): OIG investigations uncovered bid-rigging, bribery, kickbacks, and product substitution in humanitarian programs, leading to debarments, suspensions of funds ($239 million at one point), and terminations.
