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USAID Official, Government Contractors Plead Guilty in Half-Billion Dollar Bribery Scandal
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In a stunning case of corruption, a U.S. Agency for international Development (USAID) official and three government contractors have pleaded guilty to orchestrating a bribery scheme that funneled over half a billion dollars in foreign aid contracts. The decade-long fraud exploited federal set-aside laws intended to benefit minority-owned businesses,revealing vulnerabilities in government oversight and contracting processes.
The USAID Bribery Scheme Unveiled
Roderick Watson, a USAID contracting officer, admitted to accepting more than $1 million in bribes in exchange for steering contracts to multiple companies. According to the department of Justice, Watson leveraged his position to enrich himself, bypassing fair bidding processes and accepting lavish gifts (DOJ).
Did You Know? The 8(a) Business Development program was created to help small, disadvantaged businesses compete in the federal marketplace (SBA).
Key Players and Their Roles
- Roderick Watson: The USAID contracting officer who accepted bribes and steered contracts.
- Walter Barnes III: Founder of Vistant (formerly PM Consulting Group), admitted to paying bribes to secure contracts under the pretense of being a “disadvantaged” business owner.
- darryl Britt: Founder of Apprio Inc., another 8(a) contracting firm, who bribed Watson to award contracts.
- Paul Anthony Young: President of a subcontractor, who facilitated the transfer of bribes between the contractors and Watson.
How the Scheme Worked
The scheme capitalized on the 8(a) contracting program,which allows contracting officers to award contracts to companies owned by minorities,women,or veterans without the usual competitive process.Walter Barnes III, through his company Vistant, secured contracts under the guise of being a disadvantaged business, even as the company generated tens of millions of dollars. Darryl Britt‘s Apprio Inc., also participated by bribing Watson to secure contracts. When Apprio outgrew the 8(a) program, it partnered with Vistant to continue receiving sole-source contracts.
Pro Tip: Government agencies are required to set aside a certain percentage of contracts for small businesses, including those participating in the 8(a) program
