Thread by @JoshWalkos

🧵 The truth about USAID and their number one contractor Chemonics International

Chemonics International is one of the biggest U.S. government contractors in “global development” raking in billions from USAID.

But behind the glossy reports are fraud allegations, mismanagement, and ties to shady dealings.

What is Chemonics?

A Washington, D.C.-based development firm operating in 100+ countries. Its focus? Health, agriculture, governance, economic development. But its real business? Winning USAID contracts. In 2019 alone, it received $1.5 billion in USAID funding aka taxpayer’s money.
chemonics.com

It gets virtually all of its money primarily from USAID, but also the UK’s Foreign Office and the World Bank.

Interesting bedfellows right?

One of its biggest contracts was $9.5 billion of taxpayer money for a Global Health Supply Chain project (2016–2023). The catch? That project became a disaster.

“We had procurement analysts who were just making it up,” one former employee said. “We had trash data, and then we had people who didn’t understand how humanitarian aid cargo actually worked. It was a disaster waiting to happen.”

devex.com/news/too-big-t…

A Brief History
•Founded in 1975 as a subsidiary of Erly Industries.
•Became employee-owned in 2011 via an ESOP.
•In the ‘90s, helped privatize Ukraine’s agriculture sector.
•Took on post-conflict reconstruction in Afghanistan & Haiti—both riddled with cost overruns, subpar results and scandals.

Chemonics is 100% employee-owned, though its international staff weren’t included until recently. The transition was facilitated by billionaire Eijk Van Otterloo, co-founder of investment firm GMO.

Here is a sampling of the Current Board at Chenomics that has suddenly disappeared from their website.🤔


Susanna Mudge (Chair) – Former CEO, expanded Latin American operations. chemonics.com/board-of-direc…

Jamey Butcher (CEO/President) – Oversees global operations.

Archie Jones – Harvard Business School professor, private equity guy.

Gunjan Bhow – Ex-Disney & Amazon exec.

Phyllis Caldwell - Impact Investor & Former banker

A billion-dollar development contractor wouldn’t be complete without scandals.

1. Fraudulent Billing (2024)

Settled a $3.1 million case over reckless oversight.
•A subcontractor, Zenith Carex, overbilled USAID in Nigeria.
•Classic “we had no idea” defense from Chemonics.

justice.gov/opa/pr/chemoni…

2. Global Health Supply Chain Failures ($9.5B Project)

•Massive delays almost ran out HIV drugs in multiple countries.
•2021 audit: “poorly implemented controls.”
•A senior director lived like a king far beyond their salary.

thebureauinvestigates.com/stories/2023-1…

3. Discrimination & Labor Violations

- 2016: Paid $482,000 for discrimination against Black job applicants.

- 2022: Age discrimination lawsuit—ex-director alleged systematic bias.

news.bloomberglaw.com/daily-labor-re…

4. Data Breach (2023)

•263,136 employees & applicants had personal data exposed.

•The company sat on it for nearly a year before disclosure.

fedscoop.com/a-major-usaid-…

5. Taliban Bribery Allegations (2020)

•Named in a lawsuit for allegedly paying protection money to the Taliban.
•A common practice among U.S. contractors in Afghanistan.

legalreader.com/lawsuit-says-u…

6. Xinjiang Forced Labor Ties (2024)

•Reportedly sourced products from Chinese entities linked to Uyghur labor camps.
•The company, of course, denied knowledge.

“The report by the Center for Advanced Defense Studies, or C4ADS, says that even two U.S. government agencies — the U.S. Food and Drug Administration and U.S. Agency for International Development via its contractor Chemonics International — have not cut ties with East Turkistan (Xinjiang)-linked drug suppliers.”

turkistanpress.com/en/page/drugma…

Chemonics is part of a group known as “Beltway Bandits”, firms that keep U.S. foreign aid money cycling through D.C. contractors instead of actually helping local economies.

newsweek.com/beltway-bandit…

The story of USAID and Chemonics is not just about waste or mismanagement, it’s about a systemic racket that funnels billions of taxpayer dollars into private pockets under the guise of “foreign aid.” Haiti’s post-earthquake reconstruction laid bare the entire playbook of disaster capitalism:

•USAID awarded Chemonics multi-billion-dollar contracts, despite a track record of failures, delays, and outright fraud.
•Less than 1% of USAID funds went to Haitian-led organizations, while Chemonics and other Beltway contractors kept the lion’s share.
•From rigged elections to botched aid distribution, USAID and its contractors shaped Haiti’s reconstruction in a way that benefited foreign elites while leaving Haitians in deeper crisis.

The Clintons have played a major role in this racket worldwide.

And this isn’t just Haiti. From Afghanistan to Ukraine, the USAID-Chemonics machine operates the same way, exploiting crises to justify endless contracts while delivering little to nothing. The U.S. foreign aid system isn’t about “helping”, it’s about maintaining control, dependency, and corporate profit.

The next time a disaster strikes and some USG agencies is tasked with swooping in with billions, ask where that money is really going—because history tells us it’s not going to the people who need it most.

Your tax dollars at work.

Hey while you’re here please give me a follow so you can catch future threads I’ve made like these .👇🏻

https://twitter.com/joshwalkos/status/1614403299356147712