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Zimbabwean arrested in U.S. for defrauding USAid project
10 May 2025 at 21:06hrs | Views
A Zimbabwean national, Ruth Chisina Mufute, has been arrested by special agents from the U.S. Agency for International Development Office of Inspector General (USAID OIG) on charges of wire fraud and conspiracy to commit wire fraud, in connection with a nearly decade-long scheme that allegedly defrauded a USAID-funded project of approximately $240,000.
Mufute, a former project director for a North Carolina-based non-profit organization, referred to in court documents as "Company 1," was apprehended on April 29, 2025, following the unsealing of a federal indictment. Company 1 is a USAID implementing partner with operations in various countries, including South Africa, where the alleged fraud occurred.
According to the indictment, between June 2014 and May 2023, Mufute fraudulently claimed entitlement to a housing allowance by falsely representing that she was renting a house in South Africa. In reality, she owned the property and submitted fabricated documents and fake email correspondence with a fictitious landlord to support her reimbursement claims.
"USAID OIG remains steadfast in its mission to protect U.S. taxpayer-funded foreign assistance from fraud and abuse," said Acting Special Agent in Charge Nyema Morais. "This investigation highlights the importance of our continued vigilance to ensure that bad actors who try to defraud U.S. government-funded programs, regardless of where they are in the world, are held accountable."
The fraudulent claims reportedly led to the disbursement of housing-related expenses using USAID funds that were intended to support legitimate development projects abroad.
Mufute is now facing one count of conspiracy to commit wire fraud and four counts of wire fraud, each carrying potential penalties that could result in significant prison time if she is convicted.
The case underscores the risks facing U.S. foreign assistance programs and the importance of oversight and accountability in global aid operations. USAID OIG continues to investigate fraud, waste, and abuse involving U.S.-funded initiatives, with a mission to uphold the integrity of American foreign assistance.
USAID OIG also praised the U.S. Department of Justice Criminal Division's Fraud Section for its collaboration on the case, which it described as "vital to the success of this important work."
Mufute's initial court appearance is expected to take place in the coming days. Further legal proceedings will determine whether she will be extradited or tried in the United States.
Mufute, a former project director for a North Carolina-based non-profit organization, referred to in court documents as "Company 1," was apprehended on April 29, 2025, following the unsealing of a federal indictment. Company 1 is a USAID implementing partner with operations in various countries, including South Africa, where the alleged fraud occurred.
According to the indictment, between June 2014 and May 2023, Mufute fraudulently claimed entitlement to a housing allowance by falsely representing that she was renting a house in South Africa. In reality, she owned the property and submitted fabricated documents and fake email correspondence with a fictitious landlord to support her reimbursement claims.
"USAID OIG remains steadfast in its mission to protect U.S. taxpayer-funded foreign assistance from fraud and abuse," said Acting Special Agent in Charge Nyema Morais. "This investigation highlights the importance of our continued vigilance to ensure that bad actors who try to defraud U.S. government-funded programs, regardless of where they are in the world, are held accountable."
Mufute is now facing one count of conspiracy to commit wire fraud and four counts of wire fraud, each carrying potential penalties that could result in significant prison time if she is convicted.
The case underscores the risks facing U.S. foreign assistance programs and the importance of oversight and accountability in global aid operations. USAID OIG continues to investigate fraud, waste, and abuse involving U.S.-funded initiatives, with a mission to uphold the integrity of American foreign assistance.
USAID OIG also praised the U.S. Department of Justice Criminal Division's Fraud Section for its collaboration on the case, which it described as "vital to the success of this important work."
Mufute's initial court appearance is expected to take place in the coming days. Further legal proceedings will determine whether she will be extradited or tried in the United States.
Source - byo24news
