USAID funding under ED scanner over Soros link to Indian firms

The US Agency for International Development (USAID), which has been criticized by the Trump administration for promoting a “left, liberal, and woke” agenda overseas, has come under scrutiny by the Enforcement Directorate (ED) in connection with an ongoing investigation into hedge fund operator George Soros.

The ED, which is investigating three Bengaluru-based companies for allegedly violating the Foreign Exchange Management Act by receiving Rs 25 crore from the Soros Economic Development Fund (SEDF), discovered that one of them, ASAR Social Impact Advisors, also received Rs 8 crore from USAID as a foreign inward remittance in 2022-23.

Soros provided funding to the three firms between 2021 and 2024.

The Times of India quoted sources as saying that ASAR explained that the USAID funding was a reimbursement for services provided to the Council on Energy, Environment, and Water (CEEW), a Delhi-based public policy think tank that, according to its website, focuses on “understanding global challenges and implications for India’s development”. ASAR authorities were unable to clarify the nature of the services provided to CEEW or how USAID became involved.

Responding to the report, the CEEW issued a clarification on Wednesday, saying that it “has no link to George Soros or the Open Society Foundations. CEEW has never had any association or received any funding from George Soros or the Open Society Foundations”.

Its official statement sent to Firstpost by e-mail reads, “ASAR Social Impact Advisors was contracted by CEEW to provide specific services for a USAID project related to cleaner air. This project has already ended. CEEW has no current relationship to ASAR at this stage.”

“CEEW has not received any queries from any government authorities related to ASAR. We have no reason nor have any basis on which to comment on any ongoing investigation concerning a third party.”

“CEEW remains dedicated to its mission of conducting independent, rigorous research to support India’s sustainable development. We are aligned with development priorities outlined by governments in India at different levels and will continue supporting evidence-based policymaking and implementation in this spirit. We wish to emphasise that all our work is conducted transparently, in full compliance with relevant regulations, and aligns with our core mission to serve the public interest,” the statement reads.

The TOI quoted sources as saying that the other two Bengaluru-based firms that received funding from SEDF are Rootbridge Services Pvt Ltd and Rootbridge Academy Ltd. SEDF is the impact investing arm of Open Society Foundations (OSF), one of Soros’ numerous enterprises.

The ED is investigating the rationale and purpose of USAID’s payments. According to sources, the Union home ministry placed Open Society Foundations in the ‘prior reference category’ in 2016 due to “undesirable activities,” requiring it to obtain prior approval from the government before contributing funds to any Indian non-profit organization.

With regard to ASAR and the two other Bengaluru-based firms, the ED probes whether OSF met the statutory requirements. The government is further investigating Soros’s sponsorship of rights groups, think tanks, and other entities under the guise of foreign direct investment.