A multi-year investigation by the U.S. Justice Department and the U.S. Attorney’s Office for the District of Columbia has uncovered significant misuse of funds by the U.S. Agency for International Development (USAID), with millions of taxpayer dollars being diverted to terrorist organizations and fraudulent schemes.
According to the investigation, one of the most serious cases involved a Syrian national, Mahmoud Al Hafyan, who allegedly diverted over $9 million of USAID funds to the Al-Nusrah Front (ANF), a designated foreign terrorist organization affiliated with al-Qaida in Iraq. USAID’s Office of Inspector General (OIG) called this case “one of the most significant diversions of USAID-funded humanitarian aid that USAID-OIG has investigated.”
Al Hafyan, who led a non-governmental organization (NGO) in Syria with 160 employees, was accused of selling food kits meant for refugees on the black market and funneling the proceeds to ANF commanders. The food aid, originally funded by U.S. taxpayers as part of a $12 billion humanitarian initiative in Syria, was meant for food and medical supplies distributed by UN agencies and NGOs. Instead, the NGO led by Al Hafyan received $122 million over three years, a portion of which was allegedly siphoned to ANF, a group responsible for mass executions, suicide bombings, and kidnappings.
“This defendant not only defrauded the U.S. government, but he also gave the humanitarian aid he stole to a foreign terrorist organization,” U.S. Attorney Matthew Graves said in November. “While this foreign terrorist organization fought with the cruel al-Assad regime, the people who were supposed to receive the aid suffered.”
The investigation also uncovered other cases of USAID fraud and misuse of funds. A former executive of a digital consulting firm in Delaware agreed to pay a $100,000 settlement over allegations that employees knowingly submitted false claims to USAID to obtain government contracts and overbilled for non-existent work.
A global health nonprofit based in San Diego agreed to pay nearly $550,000 to settle allegations of submitting false claims to secure USAID grants meant for agricultural aid in developing countries.
In another case, the International Rescue Committee (IRC) agreed to a $6.9 million settlement under the False Claims Act for USAID-funded programming related to the Syrian civil war. The organization’s staff allegedly participated in a bid-rigging and kickback scheme involving a Turkish supply network.
A former NGO official was sentenced to 40 months in prison for bribing NGO officers in exchange for sensitive procurement information related to USAID-funded contracts. This Turkmenistan citizen allegedly orchestrated a bid-rigging scheme for five years, instructing employees to mislead law enforcement and destroy evidence.
Further investigations revealed that a former USAID deputy director from Maryland pleaded guilty to conspiracy, contract-steering fraud, and making false statements to law enforcement.
The revelations raise serious concerns about USAID’s oversight of taxpayer funds and its vulnerability to fraud and exploitation by terrorist organizations. Calls for stricter monitoring and accountability mechanisms have intensified, with experts urging a comprehensive review to prevent further misuse of U.S. foreign aid.
(With inputs from MSN)
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