Dhaka debunks USAID $29m funding controversy
Staff Reporter :
The Ministry of Foreign Affairs has refuted claims that a USAID-funded $29 million project in Bangladesh was awarded to an organisation owned by two individuals, stating that the allegation is untrue.
In a press release issued on Monday, the ministry clarified that such projects are implemented under the bilateral Development Objective Assistance Agreement between Bangladesh and the United States.
Recently, former US President Donald Trump alleged that USAID had provided $29 million to an organisation owned by two individuals in Bangladesh.
USAID, the United States Agency for International Development, is a civilian foreign aid agency under the US government. In Bangladesh, USAID funded a $29 million project titled Strengthening Political Landscape (SPL).
The press release stated, “Recent remarks by former President Donald Trump regarding this project have caused public confusion. The Ministry of Foreign Affairs conducted an investigation in response to these claims.”
The ministry’s inquiry revealed that during President Trump’s first term (2017-2021), USAID selected Democracy International (DI), a US-registered organisation, to implement the SPL project.
“Following a competitive bidding process, DI was selected in a transparent manner. After signing the contract in March 2017, DI commenced implementation of the project.
Its duration was later extended, with funding disbursed in phases,” the statement added.
Initially planned as a five-year initiative with a budget of $14 million, the SPL project was managed by USAID and co-funded by the UK’s Department for International Development (DFID, now known as FCDO). DFID contributed $10 million to the project.
The project’s primary objectives were to reduce political violence, promote peace and harmony, foster cooperation between political parties, enhance their institutional capabilities, strengthen internal democratic practices, and encourage representative leadership.
The Ministry of Foreign Affairs also emphasised that all USAID-funded projects adhere to the US government’s strict financial management regulations.
“Under these policies, rigorous financial audits are conducted. Project records are maintained for several years after completion and can be re-audited if necessary,” the ministry stated.
The investigation confirmed that during Trump’s presidency, the SPL project in Bangladesh was implemented by Democracy International, a US-registered entity.
“Therefore, the claim that the project was awarded to an organisation owned by two individuals in Bangladesh is false.
In reality, such projects are executed under bilateral development agreements between Bangladesh and the United States,” the statement asserted.
The ministry further emphasised that individual actors have no influence over project allocations.
On 21 February, Donald Trump claimed that USAID’s $29 million funding in Bangladesh was granted to an obscure organisation.
“They received $29 million.
They got a cheque. Imagine – you have a small organisation receiving $10,000 from one source, another $10,000 from another. And suddenly, the US government hands them $29 million. That organisation had only two employees,” he stated.
Trump made this remark during the National Governors Association’s Executive Session at the White House in Washington, DC.
On 16 February, the US Department of Government Efficiency published a list on X (formerly Twitter) identifying 11 countries and foreign projects whose funding had been revoked.
This list included the Strengthening Political Landscape project in Bangladesh, which had received a $29 million allocation.