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This high-stakes investigation comes after USAID—long criticized for bloated budgets and questionable spending—was stripped down under reforms pushed by President Donald Trump and supported by Elon Musk. Democrats protested those cuts, claiming they would hurt struggling communities overseas. But now, years of fraud have proven those warnings hollow.
One of USAID’s own, longtime contracting officer Roderick Watson, pleaded guilty to “bribery of a public official” after admitting to orchestrating a massive kickback operation between 2013 and 2020.
According to the Department of Justice, Watson accepted lavish payoffs from Walter Barnes, owner of Vistant, and Darryl Britt, owner of Apprio, with assistance from subcontractor Paul Young. “Britt and Barnes regularly funneled bribes to Watson, including cash, laptops, thousands of dollars in tickets to a suite at an NBA game, a country club wedding, downpayments on two residential mortgages, cellular phones, and jobs for relatives. The bribes were also often concealed through electronic bank transfers falsely listing Watson on payroll, incorporated shell companies, and false invoices,” the DOJ stated.
The total value of Watson’s bribes exceeded $1 million—a staggering betrayal of public trust.
Even more outrageous, in November 2023, Vistant—through a joint venture—secured a federal contract worth up to $800 million. The deal’s stated purpose was to tackle the “root causes of irregular migration from Central America to the United States,” a responsibility Vice President Kamala Harris famously took on.
Days later, USAID pulled the plug, citing “evidence of conduct involving a lack of business honesty or integrity.” But in a stunning twist, the joint venture sued, won in court, had the contract reinstated, and even received a $10,000 payout from taxpayers in August 2024.
Loeffler condemned the decision to award the massive deal to a company already flagged for unethical conduct. “The fact that a federal official was able to act as the linchpin of a persistent, large-scale fraud operation speaks to a failure in internal controls and a breakdown in the contracting environment that demands immediate correction,” she said.
She stressed that the SBA holds a “critical role” in protecting taxpayer dollars and “will no longer stand by while abuses are perpetrated at the expense of taxpayers and deserving small businesses.”
The sweeping audit will first target high-value and limited competition contracts in the SBA’s 8(a) program. Any evidence of criminal or ethical violations will be referred to the Office of Inspector General and the Department of Justice, with the SBA assisting in efforts to claw back stolen taxpayer funds.
“We will not allow public trust to be quietly eroded by backdoor deals and unchecked discretion,” Loeffler declared. “We owe it to America’s small businesses to get this right. Your office has the authority, and now the mandate, to act decisively.”
