The US government has suspended millions of dollars in funding to several organisations providing aid for Syria after discovering they were systematically overpaying Turkish companies for basic goods with the collusion of some of their staff.
The US Agency for International Development’s independent government auditor said it had “established grounds resulting in the suspension of 14 entities and individuals involved with aid programmes from Turkey.”
Among the revelations, it said in a statement Friday, was “a network of commercial vendors, NGO employees, and others who have colluded to engage in bid-rigging and multiple bribery and kickback schemes related to contracts to deliver humanitarian aid in Syria.”
USAID did not identify any of the charities, but among those affected are the International Medical Corps (IMC), the Irish charity Goal and the International Rescue Committee (IRC), headed by former British foreign minister David Miliband, humanitarian sources told AFP.
All the allegations relate to buying goods in Turkey, with NGOs systematically overpaying.
A senior USAID official, speaking on condition of anonymity, said among the largest problems was product substitution – with Turkish private companies selling goods to NGOs at inflated prices and then providing vastly cheaper quality goods and pocketing the difference.
Examples included blankets and other basic materials for Syrians, humanitarian sources said.
The NGOs are accused of failing to monitor their procurement, while some NGO staff are accused of direct involvement in the overcharging.
The IMC confirmed to AFP it had fired a number of staff after the allegations emerged.
“What became clear in the course of this investigation was this was a pretty sophisticated operation,” the USAID official said.
In 2015, the US donated $397 million to aid groups working in Syria, according to the UN’s Financial Tracking Service.
