Federal probe exposes $550M bribery scheme at USAID; four plead guilty as agency faces historic restructuring.

Massive Bribery Scheme Shakes USAID

The United States Agency for International Development (USAID) is at the center of a sweeping bribery scandal after a federal contracting officer and three businessmen pleaded guilty to orchestrating a $550 million fraud operation. The Department of Justice (DOJ) announced Friday that Roderick Watson, 57, a former USAID contracting officer, admitted to bribery of a public official. Prosecutors allege the scheme began in 2013 and spanned years, involving extensive payoffs, concealed payments, and fraudulent business practices.

According to DOJ filings, contractors Walter Barnes, owner of Vistant, and Darryl Britt, owner of Apprio, funneled bribes through subcontractor Paul Young to mask illicit transactions. The DOJ described a pattern of corruption, with Britt and Barnes providing Watson with cash, laptops, expensive NBA tickets, a country club wedding, mortgage downpayments, cell phones, and even employment for his relatives. These bribes were often hidden via shell companies, fake invoices, and false payroll records, with Watson allegedly receiving more than $1 million in illegal benefits.

The scandal drew attention to USAID's contract awarding process. In November 2023, Vistant, in partnership with others, secured a contract worth up to $800 million aimed at addressing root causes of migration from Central America. However, the contract was swiftly canceled after USAID found Vistant ineligible due to "a lack of business honesty or integrity." Despite this, the joint venture successfully challenged the exclusion and regained the contract along with a $10,000 payment in August 2024.

Agency Overhaul and Political Fallout

The case comes amid broader efforts by the Department of Government Efficiency (DOGE) to root out waste, fraud, and abuse across federal agencies. USAID became a primary target, with its programs slashed by 83 percent and critical functions transferred to the State Department. The agency’s website was taken offline, and most employees were placed on administrative leave as part of the overhaul.

Critics have long questioned some USAID expenditures, such as diversity, equity, and inclusion (DEI) initiatives abroad and alleged funding of terror-linked individuals. Reports revealed that U.S. dollars supported controversial projects and, in some cases, individuals later tied to extremist activities. The restructuring drew protests from Democratic lawmakers and international aid advocates, who warned of potential harm to vulnerable communities worldwide.

Despite the backlash, officials defended the crackdown. "Corruption in government programs will not be tolerated," said Sean Bottary, Acting Assistant Inspector General for Investigations at USAID. "Watson abused his position of trust for personal gain while federal contractors engaged in a pay-to-play scheme." Matthew R. Galeotti, head of the Justice Department’s Criminal Division, added, "Anybody who cares about good and effective government should be concerned about the waste, fraud, and abuse in government agencies, including USAID."

As the legal process continues, the scandal has triggered renewed debate about foreign aid, oversight, and accountability. The Justice Department and USAID Inspector General stress their commitment to pursuing fraud and restoring trust in U.S. assistance programs, while the agency’s future operations and funding structures remain under review.