Trump's SBA Makes Move After Massive Fraud Found at Dem-Protected USAID [WATCH]

The Small Business Administration (SBA) has launched a full-scale audit of federal contracting officers involved in the agency’s business development program, following revelations of widespread fraud at the U.S. Agency for International Development (USAID).

The audit will examine all SBA contracting officers who exercised grant-awarding authority dating back to 2010.

DOJ uncovered a MASSIVE $550M fraud and bribery scheme at USAID – involving contracts to help the government identify “root causes of irregular migration from Central America.”

Today, I ordered a full audit of SBA’s 8(a) contracting program – to make sure it never happens again. https://t.co/sXgaXGfiP3

— Kelly Loeffler (@SBA_Kelly) June 27, 2025

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SBA Administrator Kelly Loeffler, in a letter obtained by Fox News Digital, called the USAID scandal a “damning reflection of systemic failures in oversight and accountability.”

Loeffler stated that the fraud uncovered at USAID “was not an isolated incident.”

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In response, Loeffler directed Associate Administrator Tre Pennie to take immediate action and initiate a comprehensive review of the agency’s contracting practices.

“The role of federal government contracting officers is not ceremonial or self-dealing; rather, it is a position of immense authority and fiduciary responsibility,” Loeffler wrote.

“The contracting process must be transparent and built on merit, not personal gain.”

The directive comes in the wake of a Department of Justice (DOJ) investigation into former USAID contracting officer Roderick Watson, who was charged in a bribery scheme that spanned more than a decade. Watson, 57, pleaded guilty to “bribery of a public official.”

According to the DOJ, the bribery operation began in 2013 and involved contractors Walter Barnes, owner of Vistant, and Darryl Britt, owner of Apprio.

The two funneled payments through subcontractor Paul Young to conceal the illicit transfers. DOJ documents state that Barnes and Britt “regularly funneled bribes to Watson, including cash, laptops, thousands of dollars in tickets to a suite at an NBA game, a country club wedding, down payments on two residential mortgages, cellular phones, and jobs for relatives.”

The bribes were hidden using electronic bank transfers falsely listing Watson on payrolls, shell companies, and fake invoices.

The DOJ estimated the value of the bribes received by Watson at over $1 million.

Vistant, one of the companies implicated in the scheme, had been awarded an $800 million USAID contract in November 2023.

The project aimed to address causes of irregular migration from Central America to the United States, a priority set by former President Joe Biden and then-Vice President Kamala Harris.

However, the contract was canceled days later after USAID issued a notice excluding Vistant from federal contracting due to “evidence of conduct of a lack of business honesty or integrity.”

Despite this, Vistant and its joint venture partner successfully challenged the exclusion in court and were re-awarded the contract, along with a $10,000 payment, in August 2024.

In her letter, Loeffler condemned the Biden-Harris administration’s decision to grant the high-value contract to a firm flagged for integrity concerns.

“The fact that a federal official was able to act as the linchpin of a persistent, large-scale fraud operation speaks to a failure in internal controls and a breakdown in the contracting environment that demands immediate correction,” Loeffler stated.

Loeffler said the SBA will begin its audit by focusing on high-value and limited competition contracts awarded under the SBA’s 8(a) Business Development Program.

The results will be referred to the U.S. Office of Inspector General and the Department of Justice.

Any federal officials or private entities found to have violated SBA ethical guidelines or engaged in criminal misconduct will be referred to the appropriate authorities.

Loeffler emphasized that the SBA will also assist the DOJ in recovering misappropriated taxpayer funds.

“We will not allow public trust to be quietly eroded by backdoor deals and unchecked discretion,” Loeffler wrote.