AED Barred From Receiving New USAID Funding Pending Investigation into Consultancy's Af-Pak Work

The Universal South Building, which houses the AED offices, is located in Washington, D.C. Photo by: AgnosticPreachersKid (Own work) [CC-BY-SA-3.0], via Wikimedia Commons

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.”

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    Rolf Rosenkranz

    Rolf Rosenkranz oversees a talented team of in-house journalists, correspondents and guest contributors located around the globe. Since joining Devex in early 2008, Rolf has been instrumental in growing its fledgling news operation into the leading online source for global development news and analysis. Previously, Rolf was managing editor at Inside Health Policy, a subscription-based news service in Washington. He has reported from Africa for the Johannesburg-based Star and its publisher, Independent News & Media, as well as the Westdeutsche Allgemeine Zeitung, a German daily.