Judge Reinstates Scandal-Plagued African Development Foundation Amid Fraud Allegations

August 30, 2025 - A D.C. federal judge's ruling has restored operations at the U.S. African Development Foundation (USADF), reinstating staff and funding despite mounting evidence of systemic fraud, bribery, and misuse of taxpayer dollars. The decision overturned the Trump administration's efforts to abolish the agency, allowing controversial figures like Mathieu Zahui—suspected of accepting secret payments—to return to work.

USADF, funded annually with about $50 million in taxpayer money, claims to leverage private partnerships for African development. However, a USAID inspector general report released August 29, 2025, exposed widespread irregularities: the agency raised only 25% of claimed matching funds from partners, nearly half its grants lacked proper documentation, and no due diligence was performed before financial agreements. These lapses suggest deliberate deception, siphoning public funds without accountability.

Zahui, listed as a top employee in the report, faced seizure of his phone in 2024 after evidence emerged of bribes from contractors he favored. Despite this, the judge's injunction—prompted by a lawsuit from an African firm reliant on USADF grants—reinstated him and others, restoring canceled awards even under a ban on new foreign grants.

The agency's history reeks of corruption. In early 2025, staff physically barred DOGE auditors, requiring U.S. Marshals to enter the building. They resisted Peter Marocco's appointment as acting chairman, locking doors and defying White House directives. Investigations revealed Zahui steering contracts to friends while accepting hidden payments, using foreign pass-throughs to obscure funds flowing back to D.C. staff. USADF even promoted a for-profit pyramid scheme to impoverished Africans, further exploiting vulnerable populations.

Former general counsel Mateo Dunne alleged retaliation after probing rule-breaking, including anti-white racial discrimination claims dismissed by an EEOC judge but under appeal. A former USAID IG official described the culture as "reckless indifference to accountability," treating federal dollars like "Monopoly money."

Despite these revelations, USADF acknowledged the IG findings, pledging to strengthen policies. Senate Foreign Relations Chairman Jim Risch called the agency "beyond repair," urging abolition. The ruling perpetuates an entity that appears designed to funnel taxpayer money into fraudulent schemes, evading oversight and enriching insiders at public expense.