Talk about a plot twist! A foreign aid official, accused of taking secret payments and steering suspicious contracts, is back on the job despite a damning new Inspector General’s report. This bombshell report exposes shocking financial irregularities and a troubling lack of oversight. Are public funds truly being protected?
The African Development Foundation, a federal agency affiliated with USAID, has controversially seen its staff return to work following a D.C. judge’s decision to overturn the Trump administration’s earlier move to abolish the entity. This reinstatement comes even as a new Inspector General’s report casts a harsh light on the agency, specifically implicating top employee Mathieu Zahui in serious bribery allegations that raise profound questions about the integrity of foreign aid distribution.
Central to the unfolding scandal are the accusations against Mathieu Zahui, who is listed as one of the agency’s current top employees despite a USAID Inspector General’s revelation to a D.C. judge last year. The IG’s office reportedly seized Zahui’s phone, uncovering evidence of secret payments from a company to which he allegedly steered suspicious contracts, a clear indication of potential corruption within the aid framework.
Beyond individual misconduct, the Inspector General’s report, released on Thursday, delivered a scathing critique of the African Development Foundation’s operational practices. It found that the agency drastically misrepresented its fundraising efforts, claiming credit for three-quarters more money from African partners than it actually collected, thereby misleading Congress and the public about its financial solvency and community engagement.
Further compounding concerns over government oversight, the report exposed a pervasive lack of due diligence and accountability in the agency’s grant administration. Nearly half of its grants suffered from insufficient documentation, and the agency consistently failed to conduct proper pre-award assessments or due diligence before entering into financial agreements, leaving taxpayer money vulnerable to misuse and mismanagement.
The investigation also brought to light questionable partnerships, including a previously reported association with Herbalife, a multi-level marketing company whose former CEO sat on the government agency’s board. This collaboration involved providing “product donations” and “global volunteers” in Africa, occurring just months after Herbalife settled charges of violating the Foreign Corrupt Practices Act, further tarnishing the agency’s reputation and raising ethical alarms.
The current saga is rooted in a turbulent period during the early Trump administration when Zahui and agency staff actively resisted the appointment of Peter Marocco, who sought to disband USAID. This led to dramatic confrontations, including staff physically locking doors against auditors, ultimately resulting in the administration taking control with U.S. Marshals and laying off employees, only for a D.C. judge to temporarily invalidate these actions.
While the court ruling led to the reinstatement of staff and restored grants, the Inspector General’s ongoing investigations suggest that the turmoil is far from over. The probe into the agency’s mysterious payments to Ganiam Ltd., owned by Zahui’s friend Maina Gakure, revealed wire transfers totaling over $10,000 coinciding with sole-source contracts awarded to Ganiam, hinting at potential criminal charges that could drastically alter Zahui’s current employment status.
The damning findings prompted Senate Foreign Relations Committee Chairman Jim Risch to declare the agency “beyond repair,” advocating for its abolition. Despite the agency’s management response acknowledging opportunities to strengthen internal policies, the continuous revelations of financial irregularities and alleged corruption underscore a systemic failure in accountability that demands immediate and decisive action from government oversight bodies.
