The U.S. Agency for International Development (USAID) has experienced considerable transformations during the Trump administration, with notable participation from Elon Musk, who leads the Department of Government Efficiency (DOGE). The administration has taken measures to dismantle USAID, which include placing the majority of its 10,000 employees on administrative leave and closing its headquarters in Washington, D.C. Musk has openly criticized USAID, referring to it as a “criminal organization” and asserting that it is “time for it to die.”
A recent investigation, initially reported by Bethany Blankley at The Center Square, has revealed that millions of U.S. taxpayer dollars allocated through USAID were misappropriated to finance terrorism overseas. A lengthy investigation conducted by the Justice Department and the U.S. Attorney’s Office for the District of Columbia uncovered a scheme in which aid funds intended for Syrian civilians were instead funneled to terrorist organizations. One notable case involves a Syrian national accused of redirecting over $9 million to a group linked to al-Qaida.
In November 2024, a comprehensive inquiry by the U.S. Department of Justice and the U.S. Attorney’s Office for the District of Columbia disclosed that a significant amount of USAID’s humanitarian assistance had inadvertently reached terrorist factions. A particularly alarming case involves a Syrian national who allegedly misappropriated more than $9 million in U.S. government-funded aid for a terrorist organization associated with al-Qaida.
The report identifies Mahmoud Al Hafyan, a 53-year-old Syrian, as the principal figure in a fraudulent operation that diverted aid funds meant for civilians affected by war in Syria. Al Hafyan, also known as Abu Abdo Al-Homsi, has been indicted on 12 counts of major fraud against the United States for his involvement in misdirecting aid to the Al-Nusrah Front (ANF), a designated foreign terrorist organization linked to al-Qaida in Iraq.
USAID allocated an impressive $122 million to a non-governmental organization (designated as NGO-1) from January 2015 to November 2018, intended for humanitarian aid, which included food assistance for Syrian refugees. Al Hafyan, who was in charge of the NGO’s operations in Syria, managed a team of 160 employees and was tasked with distributing food kits to areas affected by conflict.
Rather than ensuring that the aid reached the intended displaced families, Al Hafyan and his accomplices diverted millions of dollars’ worth of food kits to leaders of the Al-Nusrah Front. Reports suggest that these supplies were subsequently sold on the black market, enriching the ANF leaders and further financing their activities. The fraudulent operation involved the manipulation of logs, exaggerating the number of aid recipients, and fabricating documents to mislead USAID officials.
“This defendant not only defrauded the U.S. government, but he also provided the humanitarian aid he misappropriated to a foreign terrorist organization,” stated U.S. Attorney Matthew Graves at the time. “While this foreign terrorist organization engaged in conflict with the oppressive al-Assad regime, the intended recipients of the aid endured suffering.”
The FBI, in conjunction with USAID’s Office of Inspector General (OIG), conducted a lengthy investigation into Al Hafyan’s fraudulent activities.
“The FBI’s top priority is combating terrorism, which includes identifying and investigating individuals who facilitate terrorist activities through financial means,” remarked FBI Special Agent Sanjay Virmani.
This case represents the latest in a series of allegations regarding USAID’s management of funds. The agency has been under scrutiny for several years due to its inadequate financial oversight and questionable funding practices.
In a separate incident from March 2022, Project Concern International (PCI), a global health nonprofit, consented to pay $537,500 to resolve allegations of knowingly submitting false claims in USAID-funded initiatives.
Furthermore, the International Rescue Committee (IRC) paid nearly $7 million to settle allegations of procurement fraud in the United States.
