USAID watchdog's latest cases: explicit material on government phones, fake invoices

USAID's growing debarment list shows how foreign-aid money was misused even as the agency is being dismantled.

Published: October 7, 2026 10:55pm

The U.S. Agency for International Development has debarred three more individuals and a company tied to agency programs for misconduct involving government resources and taxpayer funds, according to a new federal watchdog report.

Debarment excludes a person or company from federal contracts, grants and other government business for a set period. The agency's inspector general investigates and refers cases, and USAID decides whether to impose the penalty.

In the latest case, a federal contracting officer with the USAID Mission for Zimbabwe, who has not been named, was debarred after a United States Agency for International Development, Office of Inspector General investigation, released Tuesday, found that he used his government-furnished equipment (GTE) to view and store sexually explicit material. 

“USAID IG’s investigations are protecting American taxpayers from funding wasteful, corrupt, and in this case, perverted behavior by federal employees entrusted with foreign assistance programming in Africa,” a senior Trump administration official told Just the News.

The subject of the investigation used his two GTE iPhones to view and store the material and used their laptop to procure commercial sex, including sending messages appearing to solicit commercial sex. USAID policies prohibit even the appearance of facilitating trafficking-related activities.

The subject of the investigation also admitted to OIG investigators that he viewed and stored the sexually explicit material on his government devices, but does not appear to have admitted to soliciting commercial sex. 

Following the OIG investigation, the man’s assignment overseas was curtailed and he subsequently resigned from USAID. He was also referred for suspension and debarment and USAID granted that debarment for five years. The investigation summary does not include dates or a timeline of events. 

The agency, founded in 1961 by President John F. Kennedy to administer civilian foreign aid and development assistance, was effectively dismantled shortly after the start of the second Trump administration that began in January 2025. 

In July of that year, the administration implemented mass staff reductions, canceled 83% of its programs and transferred the remaining ones to the State Department. However, the agency was not fully dismantled because that requires an act of Congress. 

Earlier this month, another nonprofit and two individuals were debarred for defrauding U.S. taxpayers out of money. 

The OIG’s investigation led to the conviction and sentencing of Abiodun Ogunwale, of Virginia and Abimbola Ajayi, of Maryland. They were found to have committed wire and mail fraud as well as conspiracy to commit money laundering. The two worked for Project HOPE, a USAID-funded nonprofit dedicated to global public health. The two were then debarred for three years, according to an agency inspector general investigation summary report released Oct. 1. 

Ogunwale served as director of business development for Project HOPE, which has not been accused of any wrongdoing. Ajayi worked as a consultant for the nonprofit and submitted fraudulent invoices created by Ogunwale to make it appear as though Ajayi had performed work when she had not. Ogunwale then approved the fraudulent invoices and ensured Ajayi was paid. Ajayi also submitted fraudulent receipts claiming business expenses for her own company, AbbiFabDynamics, LLC, receiving additional fraudulent payments.

Ajayi used her ill-gotten gains to pay Ogunwale for his assistance through different avenues, including paying his credit card bills, the OIG reported.

In addition to Ajayi and Ogunwale, AbbiFabDynamics was also debarred for three years.

Just the News has been covering USAID debarments for months, including several in September alone. 

In one case, the nonprofit FUVADIS, a Colombian nonprofit that provided aid services to Venezuelan migrants, LGBTQ+ individuals, those with HIV, and others, was debarred after an OIG investigation revealed its former president and affiliates had allegedly sexually exploited those the nonprofit purported to help. Other debarments include nonprofits that rerouted U.S.-funded medical supplies to be sold illegally.

The senior Trump administration official estimated that about 50 individuals and nonprofits have been debarred since President Donald Trump began his second term, and trillionaire Elon Musk set his sights on cleaning up waste, fraud, and abuse in the federal government – including shutting down USAID and rolling over its useful functions to the State Department. 

The estimate includes many of the HAMAS officials discovered at the United Nations Relief and Works Agency (UNRWA), but does not include the more than 100 Hamas referrals from that agency pending action at the State Department.

House Democrats have denounced cuts to USAID, and in February 2025, signed a letter claiming that “despite long-standing bipartisan support for USAID initiatives that fight violence against women and girls, the proposed elimination of USAID and its funding would roll back years of progress across the globe and violate U.S. law.”

That letter was signed by Democratic Reps. Pramila Jayapal (Wash.), Ilhan Omar (Minn.), Jasmine Crockett (Texas), Raúl Grijalva (Ariz.) and Rashida Tlaib (Mich.), as well as others.

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