In the wake of a stunning corruption scandal at USAID, the Small Business Administration (SBA) under President Donald J. Trump’s second-term leadership is launching a 15-year audit of every federal contracting officer who awarded grants under its business development programs.

The decision comes as part of a broader anti-corruption initiative led by SBA Administrator Kelly Loeffler, who cited “systemic failures in oversight and accountability” across the federal contracting system and vowed to restore transparency, integrity, and trust.

“This was not an isolated incident,” Loeffler wrote in a letter obtained by Fox News Digital. “The role of federal government contracting officers is not ceremonial or self-dealing; rather, it is a position of immense authority and fiduciary responsibility.”

Loeffler directed Associate Administrator Tre Pennie, a retired law enforcement officer and current head of SBA contracting, to begin a full-scale audit of all awarding officers going back to 2010. The focus will begin with high-dollar and limited-competition contracts, especially those within SBA’s 8(a) program, which was designed to help small and disadvantaged businesses—not enrich corrupt insiders.

The audit follows the dismantling of USAID, a bloated and mismanaged foreign aid agency, as part of budget cuts championed by President Trump and tech entrepreneur Elon Musk. Democrats fiercely opposed the move, claiming it would harm impoverished communities abroad.

But those same programs were soon linked to a multi-year bribery and kickback operation. Federal prosecutors confirmed that Roderick Watson, a senior USAID contracting officer, pleaded guilty to bribery of a public official after helping rig contracts from 2013 to 2020 in exchange for luxury perks and secret payouts.

Watson accepted over $1 million in bribes, including cash, laptops, suite tickets to NBA games, mortgage down payments, and jobs for family members, according to the Department of Justice. The bribes came from Walter Barnes (CEO of Vistant), Darryl Britt (CEO of Apprio), and subcontractor Paul Young, who used phony payrolls, shell companies, and falsified invoices to conceal the payments.

One particularly egregious example: in November 2023, a Vistant-led joint venture was awarded an $800 million federal contract intended to address migration issues from Central America—ironically, one of the failed policy assignments previously handed to Vice President Kamala Harris under the Biden administration.

That contract was quietly canceled by USAID just days later, citing Vistant’s “lack of business honesty or integrity.” But in a shocking twist, the disgraced joint venture sued, won the case, and not only had the contract restored, but also received a $10,000 taxpayer-funded payment in August 2024.

In her letter, Administrator Loeffler didn’t hold back:

“This case represents a collapse in the very safeguards that are supposed to protect American taxpayer dollars and ensure fair access for legitimate small businesses.”

She slammed the Biden administration for ever approving the contract in the first place, calling it “a breakdown in the contracting environment that demands immediate correction.”

“The fact that a federal official was able to act as the linchpin of a persistent, large-scale fraud operation speaks to a failure in internal controls,” Loeffler said.

She added that SBA will no longer stand by while dishonest actors manipulate the system and deprive deserving small businesses of opportunities.

“We will not allow public trust to be quietly eroded by backdoor deals and unchecked discretion. We owe it to America’s small businesses to get this right.”

The sweeping audit will be followed by referrals to the Office of Inspector General and the Department of Justice. Officials and businesses found guilty of ethical violations or crimes will be prosecuted, and the agency will assist in recovering taxpayer funds.

“Your office has the authority, and now the mandate, to act decisively,” Loeffler concluded in her directive to contracting leadership.

The Trump administration’s crackdown is part of a broader effort to clean house, restore accountability, and put American taxpayers—and American small businesses—first.