Serbia launches investigation into misuse of USAID funds by NGOs

Serbian police raided the offices of two prominent non-governmental organizations (NGOs), CRTA and Civic Initiatives under warrants issued by anti-corruption prosecutors.

The investigation focuses on potential misuse of funds from the US Agency for International Development (USAID), Caliber.Az reports citing Russian media.

The probe was launched following statements from the FBI Director regarding alleged misuse of USAID funds. The Belgrade Prosecutor's Office is examining the activities of specific NGOs in connection with these claims. The investigation has raised concerns about the improper allocation of funds meant for democratic development and civil society initiatives.

The investigation into the use of USAID funds began during the administration of US President Donald Trump. Informer reports that the Trump administration uncovered millions of dollars in misallocated funds, extending the investigation to several countries, including Serbia. The tabloid further claimed that USAID funds were channeled to finance NGOs and media outlets in Serbia, with Trump suggesting that substantial sums were directed toward influencing Serbia's electoral processes.

In response, Serbia's Special Anti-Corruption Department of the Supreme State Prosecutor's Office has opened a criminal case regarding the alleged misuse of USAID funds. The Serbian prosecutor's office has sent a formal request to the US Department of Justice, seeking assistance in gathering critical evidence, including financial records, contracts, and expert opinions, to aid the ongoing investigation.

"The US Department of Justice is specifically requested to assist in obtaining evidence, providing financial and business records from banks or other financial institutions, and identifying any criminal proceeds that may serve as evidence in Serbian legal proceedings," the Belgrade prosecutor's office stated in a press release.

Serbia's prosecutors are exploring possible criminal offenses, including "Abuse of Office" and "Money Laundering," in relation to the activities of the unidentified individuals involved in the alleged misuse of funds. Prosecutor Nenad Stefanovic highlighted concerns about the concentration of funds in the accounts of a few NGOs and affiliated Serbian consulting firms, noting that the opaque distribution of resources to a limited circle of recipients raised suspicions of illegal activity.

As part of the investigation, Serbian law enforcement seized all relevant documentation pertaining to USAID grants from four NGOs. The prosecutor's office has also sent formal requests to the National Bank of Serbia and the Anti-Money Laundering Office to review the payment transactions of these organizations.

This investigation is likely to add further strain to relations between the Serbian government and some sectors of civil society, amid growing concerns over the transparency of foreign aid and its potential misuse.

By Vafa Guliyeva