Following a major bribery scandal at USAID, the Small Business Administration (SBA) is launching a comprehensive audit of all government contracting officers who awarded grants under its business development program over the past 15 years. SBA Administrator Kelly Loeffler condemned the fraud as a “damning reflection” of systemic oversight failures and ordered a full-scale review beginning with high-dollar contracts.

The scandal involves Roderick Watson, a USAID contracting officer who pleaded guilty to accepting over $1 million in bribes from contractors Walter Barnes and Darryl Britt between 2013 and 2020. These bribes included cash, luxury gifts, and payments disguised through false invoices and shell companies. An $800 million contract awarded to Barnes’ company was canceled due to dishonesty but later reinstated after a lawsuit, drawing criticism from Loeffler. She accused the Biden administration of ignoring fraud risks and pledged to refer violations to the Justice Department. The SBA vows to restore integrity and protect taxpayer funds while supporting legitimate small businesses.