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InterAction's Response to USAID's Partner Vetting System (PVS) Proposal

  Media Inquiries:
Nasserie Carew, 202-667-8227

Other Inquiries:
Evan Elliott, 202-552-6544

   
On July 17, there was an announcement in the Federal Register describing USAID's intent to create a new Partner Vetting System (PVS) to support the vetting of individuals, officers, or other officials of non-governmental organizations that apply for USAID contracts, grants, and cooperative agreements.

ISSUE UPDATE


How do InterAction Members incorporate opposition to terrorism in their policies and practices?
InterAction's PVO Standards require members to obey the laws of jurisdictions in which they work, including the United States. They also require our members to oppose terrorism. We have published and circulated to our members information about the executive order and federal legislation and guidelines that prohibit support for terrorist organizations.

Members know they must exercise due diligence to see that any funds they receive do not reach terrorists. Those that receive funds from USAID certify in writing that they will take all reasonable steps to ensure that they do not provide material support or resources to those who commit, advocate, facilitate, or participate in terrorist acts. The precise steps members take in their exercise of due diligence vary from one organization to another and are influenced by local circumstances. But the obligation to exercise due diligence is the same for every member in every place.

What is InterAction's relationship with the U.S. government?
More than half of our 162 members are currently implementing USAID-funded programs around the globe, and InterAction members see themselves as full partners in U.S. foreign assistance policy. InterAction is the primary interlocutor between the U.S. relief and development community and the U.S. Government, and has been so for nearly three decades. We work closely with all of the relevant agencies of the U.S. Government, including USAID, the Departments of State and Defense, MCC, and PEPFAR, to ensure that U.S. foreign assistance policies are informed by the first-hand perspectives of relief and development experts operating on the ground in every country in the world. To this end, we also work closely with the U.S. Congress, particularly those members of Congress on key committees with oversight of U.S. foreign policy.

InterAction has a long history of partnering with USAID on the issues of development funding, aid effectiveness, humanitarian practice, and security. In recent years, InterAction has worked with USAID to implement effective relief and development programs while protecting American citizens from terrorist threats. Unfortunately, the process by which this new Partner Vetting System was designed seems to ignore that partnership, as well as the existing anti-terror certification policy mentioned above, which was produced by negotiation between USAID and InterAction.

Why is InterAction objecting to the proposed Partner Vetting System?
There is no need for such a system in the absence of any evidence that USAID funds are reaching terrorists through its implementing partners.

There is no legal requirement for such a system.

The civil rights of Americans protected by the Privacy Act would be violated by the system, and they could be refused employment on grounds that would not be revealed to them and they therefore could not challenge.

Implementation of the system will jeopardize the lives of Americans engaged as foreign aid workers abroad if they are put in the position of collecting biographic information to be shared with U.S. intelligence and security agencies.

Collecting the required data on all of their employees would oblige our members to divert substantial amounts of money raised from the public for the purpose of assisting those in need abroad.

Who does this proposed regulation affect and how?
The proposed Partner Vetting will affect every nonprofit organization that applies for USAID funding including faith-based and secular organizations working in every sector in every country of the world. This system will negatively impact life-saving health and humanitarian programs, environmental programs, and the kinds of civil society development programs that are changing peoples’ lives for the better. USAID partner organizations will have to vet every person on their boards of directors and every staff member, including American citizens and foreign nationals. The proposed vetting system would divert administrative and financial esources from programs that save lives and help the world’s poor, compromise the security of NGO staff working in the field, and violate the privacy rights of U.S. humanitarian workers.

Have any USAID funds reached terrorists through American NGOs?
There is no reason to believe they have. USAID's Inspector General monitors USAID's programs in West Bank/Gaza, where the threat of diversion is believed to be high, for signs that USAID funds may be reaching terrorists. The Inspector General has not reported any diversion of USAID funds in West Bank/Gaza or anywhere else. Neither has any other competent authority. While the U.S. Congress has directed USAID to create a Partner Vetting System for West Bank/Gaza in appropriations bills dating back to 2003, there is no evidence that lawmakers intended that this program be implemented globally. In fact, a recent GAO report on the issue made no such recommendations.


 

InterAction MEMBERS RESPOND TO USAID PVS PROPOSAL:

July 23 Federal Register Notice

July 20 Federal Register Notice

July 17 Federal Register Notice

ADDITIONAL RESOURCES

 

 

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