USAID’s Office of Inspector General (OIG) initiated an investigation into an allegation of embezzlement impacting a USAID implementer in Zimbabwe. The investigation determined that the implementer’s Country Director and Finance Director embezzled Pay As You Earn (PAYE) taxes from the salaries of local employees. Instead of remitting the PAYE funds to the appropriate local authorities as required, the directors diverted the money for their own use.
Although the Finance Director was arrested and charged with theft (among other charges) by local authorities, the Country Director fled, and their location remains unknown.
The Department of Justice declined to pursue Federal prosecution. OIG also referred the individual to USAID for consideration of suspension and debarment action. However, no action was taken.
USAID-OIG, a statutorily independent law enforcement agency, continues to investigate fraud, corruption, diversion, and other misconduct impacting U.S.-funded foreign assistance programs and operations across multiple agencies. Please report any alleged misuse of U.S. taxpayer dollars impacting American foreign assistance to the OIG Hotline through https://oig.usaid.gov/report-fraud.
For more on OIG’s investigative activities, please visit https://oig.usaid.gov/our-work/investigations.