On July 17, 2007, the Federal Register published an announcement describing USAID's intention to create a new Partner Vetting System (PVS), which would require nonprofit organizations that apply for USAID contracts, grants and cooperative agreements to provide personal information on staff for the purpose of vetting by the U.S. government. The stated intent of the PVS is to prevent USAID funds from being diverted to terrorists. As stewards of both public and private dollars, InterAction and its members share USAID’s commitment to ensure that charitable funds do not end up in the hands of terrorist organizations. InterAction believes, however, that the PVS presents significant risk to the NGO community, is incompatible with a strong partnership between USAID and the NGO community, violates certain fundamentals of privacy and due process, and is not likely to achieve its stated purpose.

Since the first announcement was published, InterAction has expressed its concerns about the negative consequences that would result from an implementation of the PVS by addressing letters to members of both the Bush and Obama administrations , submitting comments to the Federal Register notices regarding the PVS (published on July 17, July 20 and July 23, 2007, and on January 2, 2009) and participating in public and closed meetings with representatives from both administrations.

Our key concerns include:

  • The PVS would create the perception that NGOs are serving as intelligence sources for the U.S. government.
  • There is a lack of analysis of the impact on development programs.
  • The PVS represents a violation of protections provided by the Privacy Act.
  • The PVS represents a violation of due process rights.
  • The PVS will be implemented using the FBI’s consolidated terrorist watchlist—a flawed data source.
  • USAID has not established sufficient safeguards for information collected under the PVS.
  • USAID has not established formal exceptions for humanitarian emergencies or low-dollar awards.
  • USAID has not established a clear definition of individuals to be vetted.
  • There is inconsistent application between assistance and acquisition awards.
  • No information on a pilot program has been distributed.

 

On August 4, 2009, the privacy rule that allows USAID to implement the PVS became effective. InterAction expects to continue to engage in a dialogue with the Obama administration regarding our concerns that persist despite more than two years of advocacy on this issue.