• 26/02/2025 09:05

USAID contractors warn of stopping work and lawsuits with millions of debts

Contractors to whom the US Agency for International Development (USAID) owed hundreds of millions of dollars, warn that they may have to close. In addition, they run the risk of getting lawsuits in developing countries. It is reported by Bloomberg.

USAID contractors warn about stopping work and judicial lawsuits with millionth debts

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One large company even says that American banks will not be To borrow more money for her due to fears that the US government will not fulfill its financing obligations.

Accusations, including threats of physical reprisals against foreign employees due to unpaid debts, were brought in new court documents on Monday. assistance introduced by the administration of Trump, which led to chaos in the global sector of the humanitarian Assistance.

According to the Council of Professional Services, the agency owes contractors at least $ 500 million in early February, which threatens bankruptcy for many small companies.

<"> < P>On Tuesday, after lunch, the judge ordered the US government to pay debts until midnight, but the US government filed an appeal in this decision in a few hours. The plaintiffs have repeatedly stated that the Trump administration did not comply with the court’s decision.

USAID had approximately $ 43 billion in 2023. The agency works mainly through contractors performing projects on its behalf around the world – some firms carry out development projects for hundreds of millions of dollars annually, mainly with low margin.

Trump against USAID

US President Donald Trump and his billionaire adviser Ilon Musk, who heads the so-called department of government effectiveness (DOGE), claim that USAID should be closed. Dozens of contracts, which influenced projects from Africa to Ukraine and led to loss hundreds of jobs in the USA.

debts of companies

One of the plaintiffs, the DAI Global LLC company, located near Washington, in Betesda, Maryland, said that she had not received any payments in the amount of $ 115 million, which $ 70 million was expired by at least 30 days.

DAI said she was forced to turn to “The Nebanka creditor specializing in difficult situations,” since the US government did not pay debt.

DAI, which has already fired more than 500 employees in the United States, said that now she is threatened with fines, tax sanctions and court claims by several suppliers. remove another 4,000 employees abroad without saving wages in violation of local labor legislation.

Another company Chemonics International Inc., which over the past 50 years has implemented more than 1,000 foreign assistance in more than 100 countries, said in mid -February, which has a debt of more than $ 100 million.

Recall

January 20, 2025, on the day of inauguration, US President Donald Trump froze the USAID initiative for 90 days. Politico reported that USAID can deprive independence and transfer to the State Department.

February 3, Ilon Mask, heading the US government effectiveness (Doge) , announced the beginning of the liquidation of the Agency for International Development USA.

After that, Trump appointed Coordinated Secretary of State Marco Rubio I.O. administrator USAID.

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