OIG Oversight: Millennium Challenge Corporation Overview

The USAID Office of Inspector General (OIG) was established on December 16, 1980, and was bought under the purview of the Inspector General Act of 1978 on December 29, 1981. On January 23, 2004, Section 614 of the Millennium Challenge Act of 2003 designated USAID OIG as the Inspector General for the Millennium Challenge Corporation (MCC). This designation authorizes USAID OIG to review, investigate, and inspect all aspects of MCC programs and operations worldwide. Under the Inspector General Act of 1978, USAID OIG operates independently of the agencies for which it has oversight authority.

The Millennium Challenge Corporation (MCC) is an independent U.S. foreign aid agency created in 2004 to promote economic growth, open markets, and increased living standards in select countries. MCC applies specific criteria in focusing its work abroad, using indicators regarding countries’ commitment to good governance, economic freedom, and investing in their citizens.

MCC provides selected countries with large-scale grants to fund projects for reducing poverty through sustainable economic growth. These projects include building infrastructure, reforming institutions, and promoting access to healthcare and education. MCC grants may complement other U.S. and international development programs.

MCC utilizes two primary types of grants: compacts and threshold programs.

  • Compacts are large, 5-year grants for countries that pass MCC’s eligibility criteria.
  • Threshold Programs are smaller grants awarded to countries that come close to passing these criteria and are committed to improving their policy performance.

 

For more information, visit the official MCC Website.

More information on OIG oversight activities relating to MCC is available using the below links:

  • Report fraud, waste, or abuse relating to USADF programs and activities using the MCC hotline.
  • Review OIG semiannual reports for information on MCC-related oversight activities
  • Access OIG audit reports relating to MCC
  • Review OIG annual plans to learn about future MCC oversight work