The United States Agency for International Development (USAID) has come under scrutiny in India as part of an ongoing investigation by the Enforcement Directorate (ED). The probe is centered around alleged foreign exchange violations linked to hedge fund billionaire George Soros. The investigation involves three Bengaluru-based companies that reportedly received significant funding from Soros’ Economic Development Fund (SEDF) between 2021 and 2024. Adding to the controversy, one of these firms also received financial support from USAID, raising concerns about the nature and intent of these transactions.
The ED Probe: Uncovering the Financial Trail
The ED is investigating ASAR Social Impact Advisors, which received Rs 25 crore from SEDF and an additional Rs 8 crore from USAID in 2022-23. ASAR claims that the USAID funds were a reimbursement for services provided to the Council on Energy, Environment, and Water (CEEW), a Delhi-based think tank specializing in global policy and development issues. However, ASAR has not been able to fully clarify the specific services rendered to CEEW or the role of USAID in the funding process.
The other two firms under investigation, Rootbridge Services Pvt Ltd and Rootbridge Academy Ltd, also received funding from SEDF, which operates as the impact investment arm of Open Society Foundations (OSF), one of Soros’ many financial networks. The ED’s scrutiny aims to determine whether these transactions complied with Indian financial regulations.
USAID and Open Society Foundations Under Government Watch
Concerns regarding foreign influence in India’s civil society and policy-making have been ongoing. In 2016, the Indian Home Ministry placed the Open Society Foundations under the ‘prior reference category’ due to what it described as “undesirable activities.” This designation mandates government approval before OSF can contribute funds to Indian non-profit organizations.
The ED is now assessing whether OSF and its associated entities adhered to these statutory requirements while funding Indian firms. The government is also widening its probe into Soros’ involvement in Indian civil rights organizations, think tanks, and policy institutions, citing potential risks to national interests.
President Trump’s Stance on USAID’s Global Agenda
The Trump administration has previously criticized USAID for allegedly promoting a “left, liberal, and woke” agenda worldwide. This investigation into USAID’s financial transactions aligns with broader concerns raised by conservative policymakers about the agency’s global influence. The current scrutiny by Indian authorities adds weight to these criticisms, potentially impacting USAID’s future operations and credibility in the region.
Implications and Future Developments
As the ED continues its probe, the outcome of this investigation could have significant ramifications for both Indian regulatory policies and USAID’s engagement in the country. If financial irregularities are confirmed, it may prompt stricter oversight of foreign funding in India, especially from organizations linked to controversial figures like George Soros. Meanwhile, USAID’s involvement raises questions about transparency and accountability in international aid distribution. The unfolding developments will likely influence India’s stance on foreign contributions and their impact on domestic policy making.
(With inputs from agencies)
