The U.S. Agency for International Development has suspended AED from receiving new U.S. government funding pending an ongoing investigation into the Washington-based consultancy’s operations, whose work in Pakistan and Afghanistan has raised questions.
Initial findings by USAID’s inspector general reveal evidence of serious corporate misconduct, mismanagement and a lack of internal controls, and raise serious concerns of corporate integrity, the agency said Dec. 8. USAID is conducting a review of every program associated with AED.
The investigation focuses on AED’s work on the Livelihood Development Program in Pakistan’s federally administered tribal areas and the Higher Education Project in Afghanistan, according to the consultancy.
“AED is cooperating with the OIG ‘s investigation and is committed to working with USAID on their overall and specific concerns,” George Ingram, AED’s interim CEO and president, told Devex. “AED has made significant steps toward strengthening its project-oversight processes, personnel and resources. AED is undertaking a full scale structural and procedural review to institute further organizational oversight and internal controls that ensure we are achieving the highest possible levels of compliance and ethical conduct.”