The United States Agency for International Development (USAID) has been embroiled in a massive bribery scandal, as revealed by the Department of Justice (DOJ). At the heart of the controversy is Roderick Watson, a 57-year-old USAID contracting officer who has confessed to accepting bribes in return for controlling government contracts. The fraudulent activities, which commenced around 2013, involved an intricate network of payoffs totaling over $1 million.
The case unveiled by the DOJ centers around a $550 million corruption scam, implicating Watson alongside contractors Walter Barnes and Darryl Britt. The two contractors, owners of Vistant and Apprio respectively, channeled illicit payments through a subcontractor, Paul Young, in an attempt to conceal their bribery. Fox News reported that the bribes took various forms, from cash to luxury items and even employment for Watson's relatives.
Watson's influence was significant, with Vistant landing a contract in November 2023, valued at up to $800 million, to address irregular migration from Central America—a key issue assigned to Vice President Kamala Harris by then-President Joe Biden. However, shortly after the award, USAID rescinded the contract due to concerns over Vistant's business practices. Despite this, Vistant and its partners managed to get reinstated on the government’s contracting list after a lawsuit and were further awarded a $10,000 settlement in August 2024.
The bribery scandal has intensified the scrutiny on USAID's operations. The agency, which had already been targeted by the Department of Government Efficiency (DOGE) for wasteful spending, faced an 83% reduction in its programs. Essential functions were reassigned to the State Department, and the agency was effectively dismantled—its website shut down and its employees barred from headquarters.
Critics have pointed to USAID's questionable funding decisions, such as a $1.5 million program to promote diversity, equity, and inclusion (DEI) in Serbia and a $70,000 DEI musical in Ireland. Further complicating the agency's reputation were findings suggesting that U.S. funds might have inadvertently supported terror-linked entities.
The agency's downsizing triggered a backlash, with protests from Democrats, activists, and international figures like Bono, who cautioned against the dire consequences of reduced aid. In early February, Democratic lawmakers rallied outside USAID's Washington headquarters, challenging the layoffs and program cuts.
Sean Bottary, Acting Assistant Inspector General of USAID's Office of Inspector General, condemned the bribery as a severe "abuse of trust" and criticized the "pay-to-play scheme." DOJ's Matthew R. Galeotti stressed the imperative of confronting waste, fraud, and abuse in government, pointing to USAID as a telling case.
The scandal underscores persistent issues in federal contracting and foreign aid programs, highlighting the critical need for diligent oversight to safeguard taxpayer money and deliver effective aid.
