One of the biggest corruption cases in the aid industry appears to be coming to a close.
Louis Berger, a major infrastructure contractor with annual revenues of $1 billion, recently pleaded guilty for the final time to charges originally stemming from its work on U.S. Agency for International Development-funded projects in Afghanistan beginning in 2002 but then stretching far beyond. Multiple employees, including the company’s former chairman and CEO, have been found guilty of criminal charges, and authorities as far away as India have made arrests, including the former chief minister of the Indian state of Goa, who was charged this month with “disappearance of evidence.”
The story of the company’s rise, fall, and what may be a new beginning offers fresh lessons to an industry still reeling from the suspension and debarment cases of nonprofits Academy for Educational Development and International Relief and Development. Over the past month, Devex has spoken extensively to top Louis Berger executives and key sources close to the company and the cases against it to piece together this history and better understand what went wrong and how the company is attempting to address it. Many of these sources requested anonymity to speak freely about sensitive issues and their close connections to the company must be taken into account. Nonetheless, what emerges is a perspective on the company’s slide toward wrongdoing and the aggressive steps it has now taken that may allow Louis Berger to finally move forward.
About the authors
Pete Troilo
Former director of global advisory and analysis, Pete managed all Devex research and analysis operations worldwide and monitors key trends in the global development business. Prior to joining Devex, Pete was a political and security risk consultant with a focus on Southeast Asia. He has also advised the U.S. government on foreign policy and led projects for the Asian Development Bank and International Finance Corp. He still consults for Devex on a project basis.
Jeff Tyson@jtyson21
Jeff is a former global development reporter for Devex. Based in Washington, D.C., he covers multilateral affairs, U.S. aid, and international development trends. He has worked with human rights organizations in both Senegal and the U.S., and prior to joining Devex worked as a production assistant at National Public Radio. He holds a master's degree in journalism from Columbia University and a bachelor’s degree in international relations and French from the University of Rochester.