OIG criminal investigators recently led a field operation in Kenya focused on identifying diverted U.S.-funded medical commodities. The operation was conducted in coordination with Kenyan law enforcement and regulatory agencies, NABP, and the U.S. Embassy in Nairobi. The operation resulted in multiple arrests, several pharmacies being shut down by local authorities, and diverted U.S funded medical supplies being seized. OIG will continue to work with its U.S. and international counterparts to investigate complex fraud and diversion schemes involving humanitarian and global health commodities. 

OIG’s Inspection and Evaluation teams recently traveled across Africa to identify, track, and trace U.S. African Development Foundation (USADF) assets, including monetary assets remaining in foreign banks. The evaluation objectives are to assess (1) USADF’s process for awarding and administering contracts for drawdown services; (2) the extent to which USADF received the contracted services from these vendors; and (3) the extent to which USADF can account for its physical and monetary assets in Washington, DC, and overseas.Teams traveled to Senegal, Tanzania, Uganda, Kenya, Benin, and Namibia. In each country, the teams conducted interviews with USADF Country Program Coordinators; took physical inventory, including of vehicles; and met with local banks to validate signatories and balances. 

OIG initiated an investigation into an allegation that a Venezuelan organization implementing two United Nations (UN) Office for the Coordination of Humanitarian Affairs (OCHA) projects in 2021 and 2022, valued at $900,000, engaged in fraud resulting in approximately $393,000 in loss of funds for programming in Venezuela. During the investigation, OIG sought additional information from OCHA and the UN Office of Internal Oversight Services (OIOS) to independently assess the allegation and pursue potential investigative leads. 

Despite repeated formal and informal requests, OIG did not receive information and records necessary to identify subjects and develop additional investigative leads to support its investigation. Without the information necessary to pursue additional investigative leads,  OIG could not continue its investigation or determine whether criminal, civil, or administrative action was warranted. 

Of note, OIG learned that OIOS did refer findings of criminality in this case to the Maduro-led Venezuelan government sometime before June 2025, despite longstanding international concerns regarding the independence of Venezuela’s judiciary. OIOS did so while declining to provide OIG with identifying information, citing process concerns. 

OIG has referred over 100 current or former UNRWA staff for participation in the October 7, 2023, terrorist attacks in Israel and/or affiliation with Hamas to the U.S. Department of State for independent review of the evidence and consideration of suspension and/or debarment action. U.S. government suspensions/debarments work to prevent individuals that engaged in misconduct from circulating across U.S.-funded programs. Of those referred, three have recently been proposed for debarment by the Department. The individuals proposed for debarment are: A former UNRWA school teacher and Hamas military operative in the Deir el Balah Battalion, who allegedly engaged in kidnapping operations during the October 7, 2023, terror attacks in Israel; a former UNRWA school teacher, who through Hamas military records, was identified as an operative of the Rafah Brigade of the Palestinian Islamic Jihad who was allegedly in Israel during the October 7, 2023, attacks; and a former UNRWA school teacher and Hamas operative for the Deir el Balah Battalion who allegedly received and held civilian hostages beginning on October 7, 2023. 

An OIG investigation into a USAID implementer in Zimbabwe determined that the implementer’s Country Director and Finance Director embezzled Pay As You Earn (PAYE) taxes from the salaries of local employees. Instead of remitting the PAYE funds to the appropriate local authorities as required, the directors diverted the money for their own use. The Finance Director was arrested and charged with theft (among other charges) by local authorities. The Department of Justice declined to pursue Federal prosecution. OIG also referred the individual to USAID for consideration of suspension and debarment action. However, no action was taken. 

OIG initiated an investigation into a Senior Finance Officer in Zambia who allegedly embezzled approximately $193,295. The investigation found the individual unlawfully altered bank account transactions and modified vendor information within the nonprofit’s payment system to embezzle funds from USAID, the Centers for Disease Control Prevention, U.S. Navy, and National Institute of Health. After the nonprofit learned about the breadth of the fraud, it reimbursed the U.S. government for the diverted funds, and the individual signed a repayment agreement with the nonprofit.

An OIG investigation revealed Carleena Graham, former Vice President of Human Resources for World Learning, defrauded the organization of approximately $425,000, of which approximately $272,500 was directly or partially funded by the U.S. Government. On March 8, 2024, Graham was sentenced in federal court to four years of probation following a guilty plea to one count of wire fraud. Graham was also ordered to pay $425,000 in restitution as part of her plea agreement. Following sentencing, Graham was debarred from receiving U.S. government funds for a period of three years. On July 17, 2026, Graham entered into a civil settlement with the Department of Justice and agreed to pay $160,000 to resolve allegations that she violated the False Claims Act by submitting fraudulent claims for payment to the U.S. Government. The civil settlement concludes OIG’s investigation. 

USAID used its non-Federal audit (NFA) program to monitor implementing partners’ use of U.S. foreign assistance. From October 2023 through March 2026, NFAs identified over $50 million in ineligible or unsupported questioned costs as well as weaknesses in implementers’ internal controls and noncompliance with laws, regulations, and award provisions. While the NFA program helped USAID oversee its foreign assistance awards, OIG identified weaknesses in the program and suggested improvements should a similar approach be used in the future. Now that the Department of State has assumed responsibility for the types of foreign assistance awards that USAID previously administered, the Department could leverage USAID’s NFA approach, with our recommendations, to help ensure it can properly monitor those awards.