Washington Babylon — September 3, 2009, 9:41 am

Foreign Aid Making American CEOs Very Rich

From USA Today:

Four chief executives whose government-funded non-profit corporations are paid to deliver U.S. foreign assistance earned more than half a million dollars in 2007, a USA TODAY review of public tax records shows. Although President Obama and Congress placed a $500,000 cap on salaries at companies getting taxpayer bailouts, there is no such restriction on those that subsist on federal grants — even those delivering aid to some of the world’s poorest regions…

“It conflicts with most people’s notion of what a non-profit organization is about when they’re paying themselves salaries that are several times higher than what a U.S. Cabinet secretary would earn,” said Sen. Patrick Leahy, D-Vt., who chairs the subcommittee that funds foreign aid.

The U.S. Agency for International Development relies on a cadre of for-profit companies and tax-exempt groups to deliver foreign assistance programs, which Obama says has gone awry. “Western consultants and administrative costs end up gobbling huge percentages of our aid overall,” Obama said to the news website allAfrica.com in July.

Salaries at for-profit USAID contractors are not disclosed, but non-profit agencies must report their CEO pay on public tax returns posted at Guidestar.org. USA TODAY examined total CEO compensation of the 10 largest recipients of foreign aid grants and contracts that also derive at least 70% of their revenue from U.S. taxpayers. Each one receives a 501(c)3 charitable exemption from federal taxes. The 10 firms received approximately $4.2 billion in foreign aid grants and contracts over the past three years, government records show. An understaffed USAID has become “a check-writing agency,” Leahy said.

“Large swaths of foreign aid are now dominated by this handful of corporate consultants, many of them enjoying the tax benefits of non-profit status,” Leahy said. “A lot of them do very good work, but they also charge a lot in overhead and salaries. The process has become too cozy, shutting out many smaller non-profits that have much to offer.”

I have a piece in the current issue of the magazine that looks specifically at the scam of American “aid” to Afghanistan, which has failed to rebuild the country but has managed to increase the world’s supply of heroin.

Share
Single Page

More from Ken Silverstein:

Commentary November 17, 2015, 6:41 pm

Shaky Foundations

The Clintons’ so-called charitable enterprise has served as a vehicle to launder money and to enrich family friends.

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Get access to 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

December 2016

Prose by Any Other Name

= Subscribers only.
Sign in here.
Subscribe here.

The New Red Scare

= Subscribers only.
Sign in here.
Subscribe here.

Separated at Birth

= Subscribers only.
Sign in here.
Subscribe here.

The Priest in the Trees

= Subscribers only.
Sign in here.
Subscribe here.

The Lightness

= Subscribers only.
Sign in here.
Subscribe here.

With Child

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
With Child·

= Subscribers only.
Sign in here.
Subscribe here.

"She glanced across the waiting room at a television playing a birth-control ad and laughed darkly. 'Jesus, Lord, it would be so nice if someone just pushed me down a flight of stairs.'"
Photograph (detail) by Lara Shipley
Article
Swat Team·

= Subscribers only.
Sign in here.
Subscribe here.

"As we shall see, for the sort of people who write and edit the opinion pages of the Post, there was something deeply threatening about Sanders and his political views."
Illustration (detail) by John Ritter
Article
Escape from The Caliphate·

= Subscribers only.
Sign in here.
Subscribe here.

"When Matti invited me on a tour of the neighborhood, I asked about security. 'The message has already been passed to ISIS that you’re here,' he said. 'But don’t worry. I guarantee I could bring even you in and out of the Islamic State.'"
Photograph (detail) by Alice Martins
Article
In This One·

= Subscribers only.
Sign in here.
Subscribe here.

"She glanced across the waiting room at a television playing a birth-control ad and laughed darkly. 'Jesus, Lord, it would be so nice if someone just pushed me down a flight of stairs.'"
Illustration (detail) by Shonagh Rae
Article
“Don’t Touch My Medicare!”·

= Subscribers only.
Sign in here.
Subscribe here.

"Medicare’s popularity, however, comes with almost no understanding of what the program is and how it works."
Illustration (detail) by Nate Kitch

Number of tombstones in Tombstone, Arizona:

792

Electrofishing on the Irrawaddy River deters dolphins from their habit of assisting fishermen.

Trump tweeted that “millions of people” had illegally cast ballots in last month’s presidential election, and the Washington Post identified four cases of voter fraud across the country.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Who Goes Nazi?

= Subscribers only.
Sign in here.
Subscribe here.

By

"It is an interesting and somewhat macabre parlor game to play at a large gathering of one’s acquaintances: to speculate who in a showdown would go Nazi. By now, I think I know. I have gone through the experience many times—in Germany, in Austria, and in France. I have come to know the types: the born Nazis, the Nazis whom democracy itself has created, the certain-to-be fellow-travelers. And I also know those who never, under any conceivable circumstances, would become Nazis."

Subscribe Today