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    • News
    • The future of US aid

    USAID: No overbilling, corruption by Chemonics in supply chain project

    In response to questions from a U.S. lawmaker, USAID global health chief Atul Gawande downplayed the findings of a recent investigation by Devex and TBIJ into the agency's $9.5 billion global health supply chain project.

    By Michael Igoe // 19 February 2024

    In a written response to questions from a U.S. lawmaker, the U.S. Agency for International Development downplayed the findings of a recent investigation by Devex and The Bureau of Investigative Journalism into problems with the $9.5 billion project led by U.S. contractor Chemonics International to strengthen global health supply chains.

    “Most of the issues raised in the referenced Devex article refer to the performance during the start-up period of the Global Health Supply Chain-Procurement and Supply Management (GHSC-PSM) contract from 2016 to 2018—not corruption, overbilling, fraud, waste, and abuse,” wrote USAID Assistant Administrator Atul Gawande, who leads the agency’s Bureau for Global Health, which oversees the project.

    The article by Devex and TBIJ, published in November, uncovered significant concerns within USAID about the project’s design and implementation, changes to reporting requirements that make its performance difficult to assess, and doubts about its efforts to improve supply chains in the countries where it operates. While the project’s most severe performance challenges occurred during its first years of implementation, the investigation uncovered additional concerns about effectiveness and oversight that have persisted.

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    More reading:

    ► US lawmaker questions $9.5B USAID health supply chain project

    ► Opinion: What we can learn from USAID’s $9.5B supply chain struggle

    ► Why have USAID's NextGen contracts been so badly delayed? (Pro)

    • Funding
    • Global Health
    • Institutional Development
    • Project Management
    • Chemonics International Inc.
    • USAID
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    About the author

    • Michael Igoe

      Michael Igoe@AlterIgoe

      Michael Igoe is a Senior Reporter with Devex, based in Washington, D.C. He covers U.S. foreign aid, global health, climate change, and development finance. Prior to joining Devex, Michael researched water management and climate change adaptation in post-Soviet Central Asia, where he also wrote for EurasiaNet. Michael earned his bachelor's degree from Bowdoin College, where he majored in Russian, and his master’s degree from the University of Montana, where he studied international conservation and development.

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