DHAKA, Bangladesh

Bangladesh has refuted US President Donald Trump’s claim that USAID awarded a $29 million project to a company owned by two individuals in the country to influence its political landscape.

Trump plans to shut down USAID, an institution that has been delivering and funding humanitarian programs since the 1960s, and has brought it under the State Department.

In February he said “$29 million to strengthen the political landscape in Bangladesh, went to a firm that nobody ever heard of."

"Can you imagine you have a little firm. You get 10,000 here, 10,000 there, and then we get $ 29 million the United States govt. They had two people working in that firm, two people, I think they're very happy, they're very rich," he added.

"The allegation that USAID awarded the $29 million project to a company owned by two individuals in Bangladeshis not true," the Foreign Ministry said in a statement on Monday.

The ministry’s investigation showed that during Trump’s first term, 2017-2021, USAID selected Democracy International (DI), a US-registered organization, to implement the project, Strengthening Political Landscape (SPL).

"Findings show that Democracy International, registered in the United States, started implementing the SPL project in Bangladesh during President Trump's first term. So the allegation that it was given to a company owned by two individuals in Bangladesh is not true. In fact, such projects are implemented through the bilateral development cooperation agreement (DOAG-Development Objective Assistance Agreement) between Bangladesh and the United States. In this case, the individual has no power to do anything," the statement said.

The ministry said multiple international organizations participated in the bidding process for the project, and USAID selected DI through a transparent and competitive process. After signing the agreement in March 2017, DI began implementation.

The ministry addressed Trump’s claim in a statement but did not formally communicate it to the US as a protest or reaction, Md. Shafiul Alam, director of the North America wing at the ministry, told Anadolu on Tuesday. He said any further response would be decided at the government level.

According to ministry, initially set for five years with a budget of $14 million, the SPL project was managed and financed by USAID, with additional funding from the UK’s development agency DFID (now FCDO), which contributed $10 million.

It said the project was meant to reduce political violence, foster peace and harmony, and promote coexistence among political parties. The non-profit also conducted surveys in Bangladesh under the initiative.

The ministry said USAID projects are required to follow US government financial management policies, and follows financial audit process strictly.