USAID Secretly Paid Egyptian Government

By Tony Munoz, Publisher and Editor-in-Chief

The Washington Post is reporting that USAID secretly paid the Egyptian government $4.6 million in “bail” money two years ago for the release of 43 NGO workers, including then-Secretary of Transportation Ray LaHood’s son, Sam LaHood: 

http://bit.do/usaid-whistle-blower

On January 25, 2011, demonstrations erupted in Cairo and other Egyptian cities regarding corruption in President Hosni Mubarak’s administration. On February 11, Mubarak resigned and transferred power to the Egyptian military, whereupon USAID hired several non-governmental organizations (NGOs) to set up pro-democracy groups throughout the country. Less than a year later 43 of the NGO workers, including Sam LaHood, were arrested and charged with operating in the country illegally.

On March 12, 2012 the workers, including Sam LaHood, were released, but reports at the time claimed the U.S. government had negotiated for their release and paid a bail. The Washington Post article states the Office of the Inspector General (OIG) overseeing USAID issued a confidential draft audit questioning the legality of the payment, which directly benefited DOT Secretary LaHood’s son. 

When the final report was released by the agency, questions concerning its legality were removed, and whistleblowers from the agency claimed they were pressured by the Administration to remove incriminating information about the illegal payment. 

Favoritism?

MarEx caught up with K. Denise Krepp, who is a former MARAD Chief Counsel and a former Coast Guard officer: "I am distressed to learn that USAID paid $4.6 million for the release of Secretary LaHood's son and 42 others,” Krepp said, “especially in light of the fact that the Obama Administration has repeatedly said it would not pay ransoms for U.S. mariners captured by Somali pirates.”

USAID supposedly made the $4.6 million payment from a local trust fund and, according to government officials, there are few policies regarding how the agency can use these funds. Meanwhile, the Administration and USAID’s top man, Rajiv Shah, have been lobbying Congress over the last few years to end the PL 480 program (Food for Peace) and instead send the cash overseas to buy food locally.  

“The Obama Administration said it would prosecute Americans who paid these ransoms,” Krepp said. “Yet it condones altering USAID audit reports to hide the truth that the agency essentially paid a ransom for the release of 43 NGO workers, including Sam LaHood. It is shameful.”

The Washington Post article said it is common practice to edit OIG audits to hide wasteful or illegal spending from the public. – MarEx