A senior official at a U.S. government agency has agreed to plead guilty to federal charges after prosecutors say he steered hundreds of thousands of taxpayer dollars to a favored contractor in exchange for personal payments.
Mathieu Zahui, a 59-year-old resident of Fairfax, Virginia, agreed to plead guilty to charges tied to his role at the United States African Development Foundation (USADF), according to the Department of Justice (DOJ).
Zahui served as Director of Financial Management at the agency and referred to himself as its chief financial officer on USADF’s Facebook page.
USADF is an independent federal agency established in 1980 to promote economic development in Africa through grants to small businesses and community organizations.
While it operates alongside the U.S. Agency for International Development (USAID), it has separate funding and oversight.
Bribery and Kickbacks Scheme
According to court documents, between approximately 2021 and 2023, Zahui directed about $800,000 in USADF funds to a Kenya-based company owned by a longtime associate, identified in filings as CC-1.
Prosecutors said the company functioned largely as a pass-through entity, performing little to no work while retaining markups ranging from 17 percent to 66 percent, totaling more than $134,000.
In return, Zahui received $12,000 in cash gratuities from the associate.
Federal prosecutors said the payments violated laws barring public officials from accepting anything of value in exchange for official acts.
The investigation was led by the USAID Office of Inspector General, with assistance from the DOJ’s fraud section.
When questioned in 2024 about his relationship with the Kenya-based firm, Zahui falsely claimed he had never received any benefits from it, prosecutors said, triggering an additional charge.
Charges and Potential Sentence
Zahui is expected to plead guilty to:
• One count of accepting gratuities under 18 U.S.C. § 201(c), carrying a maximum penalty of two years in prison
• One count of making a false statement to a federal law enforcement officer under 18 U.S.C. § 1001, which carries a maximum penalty of five years
A sentencing date has not yet been announced.
However, a hearing is expected to be scheduled soon in the U.S. District Court for the District of Columbia.
Renewed Scrutiny of USADF
The case comes amid longstanding concerns about oversight and accountability at USADF.
In 2019, the Trump administration issued an executive order seeking to consolidate or eliminate the agency, citing inefficiency and potential waste.
In response to Zahui’s case, Sen. Mike Lee (R-UT) introduced the Terminate Unaccountable Spending, Abuse, Deception, and Fraud (USADF) Act.
The legislation is aimed at dissolving the foundation altogether.
Reports have also indicated that Zahui blocked representatives from the Department of Government Efficiency (DOGE) from accessing USADF facilities during an audit.
Some sources have linked this action to efforts to conceal the scheme.
The guilty plea marks the latest blow to an agency that has faced repeated questions about governance, transparency, and the stewardship of federal funds.
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