US President Donald Trump's allegation that USAID provided $29 million to an organisation owned by two persons in Bangladesh is not true, said the Ministry of Foreign Affairs today.
"Such projects are executed under the Development Objective Assistance Agreement (DOAG) between Bangladesh and the US, ensuring no individual influence in the decision-making process," it said in a statement.
Addressing the White House Governors Working Session on February 20, Trump claimed that the $29 million USAID fund landed with an obscure firm that he said was "a little outfit" with just two employees.
"Two people! They're very happy. Very rich. They'll be on the cover of a top business magazine -- for being great scammers," quipped the US president.
At another event on February 21, Trump again accused the agency of funneling $29 million to prop up a "radical left communist" in Bangladesh – triggering question among public mind.
Following that, the foreign ministry investigated the matter and issued the statement.
It said a USAID-funded project in Bangladesh -- Strengthening Political Landscape (SPL) -- was implemented with a budget of $29 million.
During President Trump's first term, USAID selected Democracy International (DI), a US-registered organisation -- to implement the project. Multiple international organisations participated in a competitive bidding process, and USAID made its decision transparently. The contract was signed in March 2017, and DI subsequently began implementation. The project duration was later extended, with funds disbursed in phases.
Initially, SPL was a five-year project with a budget of $14 million. It was managed by USAID and co-funded by the UK's development agency DFID (now FCDO), which committed $10 million.
The project aimed to reduce political violence, foster peaceful coexistence among political parties, enhance their capacities, improve internal democratic practices, and promote representative leadership. DI also conducted survey activities in Bangladesh under the project.
The statement said USAID projects are subject to strict US government financial management policies, including rigorous auditing and record-keeping for years after completion. If necessary, re-audits are conducted.
The investigation confirms that DI implemented the SPL project in Bangladesh during President Trump's first term, and the claim that the project was awarded to a privately owned Bangladesh
organisation is false.