The U.S. Agency for International Development (USAID) is facing scrutiny after a major fraud scandal was uncovered by Elon Musk's Department of Government Efficiency (DOGE).

Fraudulent activities involving USAID funds have prompted calls for potential criminal referrals to the Department of Justice (DOJ), as disclosed in a recent briefing to the House Foreign Affairs Committee, as the Daily Mail reports.

The briefing was conducted by Pete Marocco, the deputy administrator-designate at USAID. It took place behind closed doors on Capitol Hill, focusing on the misuse of funds and the possibility of widespread corruption within the agency.

Committee Members Learn of Judicial Actions

Rep. Keith Self and other committee members were informed during the briefing that judicial actions were still being considered.

"There's still judicial action that has even come out as late as this morning," stated Rep. Self. He emphasized the need for strong evidence before referring anyone to the DOJ.

According to Rep. Self, "They intend to refer USAID officials to DOJ," highlighting the seriousness of the fraud found. The wrongdoing, he noted, involves "outright fraud, not just bad programs, not just ignoble programs, not just programs that don’t support the national interest of the United States."

Rep. Self stressed the importance of a robust paper trail, stating, "You're going to have to have a paper trail to prove that" and added, "I doubt that they would refer anyone without a very strong paper trail."

Scope of Fraud Revealed as Extensive

An anonymous source revealed that Marocco told both Democrats and Republicans in the committee "that the waste, fraud, and abuse at USAID was more severe than initially presumed."

This statement underscores the unexpected scale of the issue, prompting a reevaluation of the agency's operations.

The same source disclosed that multiple referrals for criminal prosecution were being considered. "He told lawmakers that multiple referrals to the Justice Department for criminal prosecution were being considered," explained the source.

The conduct in question, according to the source, arose due to "USAID’s decentralized accountability system that often left grantees on the ground using American tax dollars in ways that were both inappropriate and potentially illegal."

Public Criticism and Administrative Actions Emerge

Musk has publicly criticized the operations at USAID, even labeling it a "criminal organization." This harsh criticism comes as part of a broader effort by Musk and Trump to enforce cost-cutting and increase efficiency in U.S. aid and development programs.

As an immediate measure, thousands of USAID employees have been placed on administrative leave. This action accompanies widespread cuts and program shutdowns initiated under the direction of Musk and Trump's administration.

The USAID headquarters in Washington has also been affected; it was shut down with employees advised to work remotely as of Feb. 3. This move is part of the organizational changes aimed at restructuring and possibly salvaging the agency's reputation and functionality.

Legal Developments and Political Debates Unfold

Recently, the U.S. Supreme Court made a decision to unfreeze $2 billion in USAID funding that had been previously blocked by Trump. This decision is part of the ongoing legal and political battles concerning the agency’s future and its role in U.S. foreign policy.

The debate over USAID's spending continues to polarize opinion between Republicans and Democrats, illustrating the differing views on the importance and impact of U.S. foreign aid objectives.

This division is likely to influence the forthcoming decisions about the agency’s operations and governance.

The uncovered activities at USAID have led to a critical juncture where the future of U.S. international development efforts could be reshaped, depending on the outcomes of the DOJ's investigation and subsequent judicial actions.