‘USADF is garbage’: Senior US foreign aid official will plead guilty to taking kickbacks, lying to feds

The U.S. African Development Foundation, a foreign aid agency that poured millions of taxpayer dollars into African initiatives over the past four decades, desperately fought the Trump administration’s efforts to dismantle the agency and audit its finances.

It’s now painfully obvious why there was so much resistance to transparency at the U.S. Agency for International Development-adjacent outfit.

Months after government watchdog Judicial Watch sued the USADF for records regarding its expenditures and in the wake of allegations that agency officials were abusing their positions and misusing funds, the USADF’s director of financial management, Mathieu Zahui, is now admitting wrongdoing.

‘The USADF Director of Financial Management’s fraudulent acts betrayed the trust of the American people.’

Zahui, an official who denied DOGE access to the agency’s financial records last year, has agreed to plead guilty to taking secret payments and lying to federal law enforcement officers about those payments.

“Mathieu Zahui is charged with accepting payments from a government contractor and then abusing his position by directing USADF funds to that contractor for little-to-no work,” Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said in a statement on Friday. “Corruption by senior officials representing the United States cheats American taxpayers and rigs the system against honest work.”

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Tom Williams/CQ-Roll Call, Inc via Getty Images

The Justice Department indicated in court documents obtained by Rikki Ratliff-Fellman, chief content officer for Glenn Beck, and shared with Blaze News that Zahui, 59, arranged for the USADF to pay vendors and contractors through a Kenya-based company owned by a government contractor Zahui has known since 1999.

“Zahui arranged for ADF to pay certain vendors and contractors through Company-1 rather than pay them directly,” the DOJ noted in the filing. “Zahui then approved invoices for Company-1 and CC-1 that included mark-ups ranging from 17% to 66% on these pass-through invoices, even when Company-1 did no work justifying the mark-up.”

The company belonging to Zahui’s associate submitted over 20 pass-through invoices for the African Development Foundation for which Zahui had USADF shell out at least $617,625.49. His associate’s company allegedly kept $134,886.34 of that sum as a mark-up for “logistical support.”

Between 2019 and 2022, Zahui personally and directly received $12,000 in cash payments, the DOJ alleged.

Zahui and his associate’s company unsurprisingly failed to disclose the details of their little arrangement to the Bureau of the Fiscal Service, which oversaw and authorized USADF’s payment to external parties.

Adding insult to injury, Zahui told federal agents when interviewed in 2024 that he had never received any kickback from his friend’s company.

The USADF financial director has, however, since agreed to plead guilty to one count of accepting gratuities from his associate’s company and one count of making a false statement to a federal law enforcement officer. He faces a maximum of two years in prison for the first charge and five years in prison for the second.

Peter Marocco, former director of the Office of Foreign Assistance and USAID deputy administrator, wrote in response to the agreement, “USADF is garbage. A culture of defiant fraud, waste and abuse that must come to an end. This is only scratching the surface. Abolish it!”

“The USADF Director of Financial Management’s fraudulent acts betrayed the trust of the American people,” said Sean Bottary, the acting assistant inspector general at the USAID’s Office of Inspector General.

Zahui’s guilty plea apparently will not be the end of the crackdown on USADF.

“There are active investigations as we dig deeper into the African Development Foundation’s egregious and systemic fraud, waste, and abuse,” Marocco told Blaze News. “After battling obstructionist efforts to block the president’s executive order, the more we dig, we find evidence of intimidating whistleblowers and other outrageous conduct.”

“This rogue agency is rotten waste to the core, and it needs to be defunded,” added Marocco.

The USADF was one of the agencies President Donald Trump ordered the elimination of “to the maximum extent consistent with applicable law” in February 2025.

Blaze News has reached out to USADF for comment.

Editor’s note: This story has been edited after publication to clarify how Blaze News obtained the documents and to add comment from Peter Marocco.

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