US aid cuts to Ukraine raise risk of waste and fraud, say watchdogs
"The termination of third-party monitoring contracts has further limited USAID's ability to oversee programs," the State Department, Pentagon and USAID inspectors general said in a report issued on Thursday.
The U.S. Agency for International Development was the main U.S. agency that administered civilian foreign aid for more than 60 years. It is being dismantled by the Trump administration and is scheduled to be closed on September 2.
The three inspectors general submit quarterly reports to Congress on their oversight of U.S. civilian support for Ukraine in its fight against Russia's full-scale invasion launched in February 2022.
In January, President Donald Trump froze all U.S. foreign assistance programs pending a review of their alignment with his "America First" policies, and ordered the dismantling of USAID, which stopped disbursing funds in July.
As part of this decision, billionaire Elon Musk's Department of Government Efficiency oversaw the termination of 83 percent of USAID programs, including some that supported Ukraine.
The watchdogs' report said that USAID managed $30.2 billion in direct support for the Ukrainian government's budget, and provided a guarantee that secured a $20 billion loan for Kyiv.
It said that in the three months ending June 31, 25 civilian aid programs for Ukraine were terminated, while 29 active programs, five under stop-work orders and four of unknown status were transferred to the State Department.
The terminated programs included contracts with third parties that provided independent tracking of USAID funds to ensure that they were spent as intended and that helped "inform both current and future decision-making," it said.
"USAID said that without independent monitoring, it cannot verify that programs are being implemented in line with award terms, increasing the risk of waste, fraud and abuse," the report said.
This is especially true in conflict-affected areas "where there is a heightened potential for diversion of funds," it warned.
(Reporting by Jonathan Landay; editing by Clelia Oziel)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
an hour ago
- New Straits Times
Manufacturers turn to AI to weather tariff storm
MANUFACTURERS like American lawnmower maker The Toro Company are not panicking at the prospect of United States President Donald Trump's global trade tariffs. Despite five years of dramatic supply disruptions, from the Covid pandemic to today's trade wars, Toro is resisting any temptation to stack its warehouses to the rafters. "We are at probably pre-pandemic inventory levels," said its chief supply-chain manager, Kevin Carpenter, looking relaxed in front of a whiteboard at his office in Minneapolis. "I think everybody will be at a 2019 level." Among US manufacturers, inventories have roller-coasted this year as they rushed to beat Trump's deadlines for tariff hikes, only to see them repeatedly delayed. But how can firms run lean inventories even as tariffs fluctuate, export bans come out of the blue, and conflict rages? One of the answers, they say, is artificial intelligence. Carpenter says he uses AI to digest the daily stream of news that could impact Toro's business, from Trump's social media posts to steel prices, into a custom-made podcast that he listens to each morning. His team also uses generative AI to sieve an ocean of data and to suggest when and how many components to buy from whom. It is a boom industry. Spending on software that includes generative AI for supply chains, capable of learning and even performing tasks on its own, could hit US$55 billion by 2029, up from US$2.7 billion now, according to US research firm Gartner, driven in part by global uncertainties. "The tool just puts up in front of you: 'I think you can take 100 tonnes of this product from this plant to transfer it to that plant.' "And you just hit accept if that makes sense (to you)," McKinsey supply chain consultant Matt Jochim said. The biggest providers of overall supply chain software by revenue are Germany's SAP, US firms Oracle, Coupa and Microsoft and Blue Yonder, a unit of Panasonic, according to Gartner. Generative AI is in its infancy, with most firms still piloting it spending modest amounts, industry experts say. Those investments can climb to tens of millions of dollars when deployed at scale, including the use of tools known as AI agents, which make their own decisions and often need costly upgrades to data management and other IT systems, they said. In commenting for this article, SAP, Oracle, Coupa, Microsoft and Blue Yonder described strong growth for generative AI solutions for supply chains without giving numbers. At US supply chain consultancy GEP, which sells AI tools like this, Trump's tariffs are helping to drive demand. "The tariff volatility has been big," said GEP consultant Mukund Acharya, an expert in retail industry supply chains. SAP said the uncertainty was driving technology take-up. "That's how it was during the financial crisis, Brexit and Covid. And it's what we're seeing now," Richard Howells, SAP vice president and supply chain specialist, said. An AI agent can sift real-time news feeds on changing tariff scenarios, assess contract renewal dates and other data points and come up with a plan of action. But supply chain experts warn of AI hype, saying a lot of money will be wasted on a vain hope that AI can work miracles. "AI is really a powerful enabler for supply chain resilience, but it's not a silver bullet," says Minna Aila, communications chief at Finnish crane-maker Konecranes and member of a business board that advises the OECD on issues including supply chain resilience. Aila said: "I'm still looking forward to the day when AI can predict terrorist attacks at sea, for instance." Konecranes' logistic partners are deploying AI on more mundane data, like weather forecasts. The company makes port cranes that are up to 106m high when assembled. When shipping them, AI marries weather forecasts with data like bridge heights to optimise the route. Toro supply chain chief Carpenter says that without AI, supply chain managers might need to run bigger teams as well. Is he worried that AI is coming for his job one day?
New Straits Times
2 hours ago
- New Straits Times
Made-for-TV pageantry as Trump brings Putin in from the cold
SETTING foot on Western soil for the first time since he ordered the invasion of Ukraine, Vladimir Putin basked in choreographed pageantry courtesy of Donald Trump, but was also confronted by signs of American power. In made-for-television images, Putin and Trump each flew in their presidential planes to Elmendorf Air Base, the largest US military installation in Alaska that played a key role in monitoring the Soviet Union. Trump waited in Air Force One until Putin landed and then stepped down to the tarmac, clapping as he saw the Russian leader for the first time since 2019, this time under a frigid slate-grey sky. They then walked towards each other, smiled and shook hands before posing together on a stage that read "Alaska 2025". In a highly unusual move, Putin stepped in "The Beast", the ultra-secure US presidential limousine, alongside Trump before they headed into talks that focused on Ukraine. Putin grinned widely and appeared to joke to reporters as the two met in a room which the American hosts emblazoned with the words — written only in English — "Pursuing Peace". Putin sought to flatter Trump, speaking to him of how he wanted a positive relationship and — seizing on one of the US leader's favourite themes — agreeing that he would not have invaded Ukraine if Trump and not Joe Biden were president in 2022. When Trump told Putin of how he hoped to meet again, the Russian leader broke out rare words of English: "Next time in Moscow." The reception was a striking contrast to a White House meeting with Ukrainian President Volodymyr Zelenskyy in February, when Trump and Vice President J.D. Vance berated him and accused him of ingratitude. Zelenskyy was long hailed across the Western world. Putin by contrast has curtailed his travel sharply since he sent troops to invade Ukraine, and he faces an arrest warrant from the International Criminal Court related to the war. Putin was quickly confronted on the war as a reporter repeatedly and loudly shouted out to him, "When will you stop killing civilians?" Putin did not react. Both sides sought to press their message, sometimes in unsubtle ways. As Putin walked in, a B-2 stealth bomber — an ultimate symbol of US military power — flew overhead. Sergei Lavrov, the veteran Russian foreign minister rarely seen out of a jacket and tie, was photographed arriving ahead of Putin in Alaska in a sweatshirt emblazoned with "CCCP" — the USSR — in a reminder of the superpower status that Putin has been striving to recreate. Senior Russian officials were temporarily relieved from severe US sanctions in place since the Ukraine invasion, allowing them not just to arrive in the US but to carry out day-to-day transactions such as withdrawing money from cash machines. Putin and Trump did not step off the base, but activists held out hope of at least a fleeting protest by posting blue-and-yellow Ukrainian flags on roofs that could be spotted if either leader looked out of his plane's windows. With just a week to prepare since Trump announced the summit, Anchorage was strained to capacity with hotels full of tourists on fishing expeditions and coastal cruises who had no warning that their summer destination would become the focus of global diplomacy. Russian journalists, unable to secure accommodation, posted disapproving pictures of staying at a sports arena, where they slept on cots partitioned off from one another by black curtains. The US hosts served the Russian journalists a selection of familiar foods — shashlik meat skewers, grilled fish and, in a common dish for Russians that suddenly could take on another meaning, chicken Kiev.
The Star
3 hours ago
- The Star
Australia grants asylum to former HK lawmaker and pro-democracy activist Ted Hui
Former lawmaker Ted Hui left Hong Kong late in 2020 after facing criminal charges over the 2019 pro-democracy protests. -- PHOTO: REUTERS HONG KONG/BEIJING (Reuters): Hong Kong pro-democracy activist Ted Hui has been granted asylum in Australia, the former lawmaker said in a Facebook post on Saturday, more than four years after he left Hong Kong where he faces criminal charges over the 2019 pro-democracy protests. Hui said he received written notice from the Australian Department of Home Affairs on Friday approving his claim and that his wife, children and parents were also granted visas. "When people around me say 'congratulations' to me, although I politely thank them, I can't help but feel sad in my heart. How to congratulate a political refugee who misses his hometown?" he said in the Facebook post. "If it weren't for political persecution, I would never have thought of living in a foreign land. Immigrants can always return to their hometowns to visit relatives at any time; Exiles have no home." The Home Affairs Department did not immediately respond to emailed questions sent after business hours. The Hong Kong government and China's foreign ministry did not immediately respond to questions about the decision. Australian Prime Minister Anthony Albanese visited Beijing last month as part of his administration's years-long push to improve ties with China. A former Democratic Party lawmaker, Hui left Hong Kong late 2020 after facing criminal charges over the 2019 pro-democracy protests. In 2023 Hong Kong accused him and seven others of national security offences, including incitement to secession, and put HK$1 million ($127,782) bounties on their heads. Australia said it was disappointed by the decision at the time and concerned about the law. Pro-democracy businessman Jimmy Lai is currently on trial in Hong Kong on charges related to a national security law imposed by Beijing and alleged sedition. ($1 = 7.8258 Hong Kong dollars) (Reporting by Lewis Jackson in Beijing and Jessie Pang in Hong Kong. Editing by Jane Merriman)
