By Luke Rosiak
Fraud relied on laws letting officials give contracts to racial minorities without competition.
Three government contractors and a USAID official have pleaded guilty to a scheme involving paying bribes in order to steer more than half a billion dollars in foreign aid contracts, the Department of Justice said Friday.
Roderick Watson, a USAID contracting officer, admitted to steering money to multiple companies in exchange for more than $1 million in bribes.
“Watson exploited his position at USAID to line his pockets with bribes in exchange for more than $550 million in contracts,” Guy Ficco of IRS Criminal Investigation said in a statement. “While he helped three company owners and presidents bypass the fair bidding process, he was showered with cash and lavish gifts.”
The scheme was possible because of the federal government’s racial “set-aside” laws known as 8(a) contracting, which allow contracting officers to give contracts to companies owned by minorities, women, or veterans without the usual competitive process.
Walter Barnes III, the founder of a Baltimore-area company predicated on taking advantage of those laws, admitted to paying bribes, including a country-club wedding, cash, and a trip to Martha’s Vineyard.