Following a massive bribery scandal at USAID, the Small Business Administration (SBA) is launching a comprehensive audit of every government contracting officer who awarded grants under its business development program over the past 15 years. SBA Administrator Isabella Casillas Guzman called the fraud a “damning reflection of systemic failures in oversight and accountability,” emphasizing that it was “not an isolated incident.”

The audit order came from former Senator Kelly Loeffler, who directed Associate Administrator Tre Pennie to begin a full-scale review of all awarding officers dating back to 2010. Loeffler stressed that federal contracting officers hold “immense authority and fiduciary responsibility,” and that the process must be “transparent and built on merit, not personal gain.”

The crackdown follows the dismantling of USAID under cuts pushed by Elon Musk and former President Trump, aimed at rooting out waste and fraud. The bribery scandal involved longtime USAID contracting officer Roderick Watson, who pleaded guilty to accepting over \$1 million in bribes from contractors Walter Barnes and Darryl Britt, disguised through fake invoices, shell companies, and other means.

In 2023, a company involved in the scandal was awarded an \$800 million contract to address migration issues but was later disqualified. However, after legal challenges, the contract was restored with a \$10,000 payment from the government.

Loeffler condemned the Biden administration for awarding contracts to dishonest companies and vowed the SBA will no longer tolerate abuses. The audit will prioritize high-dollar and limited-competition contracts, with findings referred to the Office of Inspector General and DOJ for potential prosecution and fund recovery.