How Some NGOs are Stealing Public Funds

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The recent FBI raids have unleashed inhumane discrepancies among so-called NGOs that are getting federal funding in order to help the needy.

One such group named Feeding Our Future took millions of dollars from the government in the name of feeding poor children, but never used even a cent to actually feed anyone.

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See How Food Funding NGOs Stole COVID Relief Money

According to the New York Times, Advance Youth Athletic Development is one of many groups that gathered money from the government, claiming they would feed the children.

Once the group stated it was giving meals to 5,000 children daily, the state of Minnesota channeled almost $3.2 million toward the group.

However, multiple raids conducted by the FBI revealed no such program was in place. When the actual site was inspected, it found neither a kitchen, nor a child care facility, was present at the location.

“None of this money” was used to feed children, the FBI suggested. Instead, the government stated, the beneficiaries used the money to buy “real estate and cars.”

This discrepancy has once again raised concerns regarding the involvement of focus groups and NGOs in matters that are supposed to be done by the government. 

Over time, governments kept depending on these groups, hoping it would ease the burden on its shoulders.

 

The far-left political activists have often endorsed the concept of these groups, claiming these people should be empowered, instead of the government, in providing facilities to needy people.

Government kept funding fraudulent NGOs, even after suspicions

Even though the FBI sensed wrongdoing in the operation of the Feeding Our Future, the group kept on receiving money, as it was not possible to easily close the program, due to judicial restrictions.

The group got a huge sum of over $197 million after the time it was first flagged.

Feeding Our Future is a group mandated to oversee smaller groups working to provide food to needy children in Minnesota. However, the oversight group turned out to be one of the beneficiaries of the whole episode.

According to the New York Times, overseeing groups have little incentive to ring alarm bells about any fraud at the lower level.

This is due to the fact these groups get up to 15 percent of the money they are supposed to overlook for their “administrative costs.”

However, if they catch wrongdoings, smaller groups are likely to be shut down, which will eventually reduce the money for these bigger groups.

 

This recent wave of monetary fraud intensified after the beginning of the pandemic, as many groups found an opportunity once the government started pouring in big money from social spending.

The same was the case with Feeding Our Future, as the group was established in 2016, but its owners accumulated riches using federal money spent under COVID relief.

All stakeholders of Feeding Our Future denied any wrongdoing, but still, the program was dissolved recently.