USAID’s Office of Inspector General (OIG) initiated an investigation following a disclosure received by OIG in June 2025 that Ansar Allah (a.k.a. the Houthis)—a designated Foreign Terrorist Organization based in Yemen—confiscated approximately $122,000 worth of U.S. government-funded equipment from a USAID-funded aid organization.
OIG’s investigation found evidence that, after the termination of the aid organization’s USAID-funded award, it ceased operations in Yemen and sought to donate its U.S.-government-funded assets, to include vehicles and other physical inventory, in accordance with award requirements. However, Houthi representatives required the awardee to inventory and transfer the assets to the Houthis. The awardee complied due to concerns about the safety of its local and international staff.
In October 2025, USAID OIG informed USAID of this information for consideration of any remedial action.
USAID OIG continues to investigate fraud, corruption, diversion, and other misconduct impacting U.S.-funded aid programs across multiple agencies. For more on OIG’s investigative results, please visit https://oig.usaid.gov/our-work/investigations.
OIG reminds personnel and awardees to continue reporting allegations of misconduct to OIG’s Hotline, consistent with award requirements and other legal obligations.