Ethiopian government authorities have taken action against civil society organizations (CSOs) that were receiving financial assistance from the U.S.-based international development organization, USAID. These organizations have been accused of misappropriating funds and resources.

On Tuesday, February 27, 2017, the Ethiopian government issued an urgent statement, announcing the cessation of aid from USAID. The government’s decision was based on allegations of mismanagement and improper use of financial support, stating that those organizations could no longer transfer assets or funds to third parties.

In the statement, Ethiopian authorities made it clear that civil society organizations must operate within the legal and moral boundaries of the country. They emphasized that these organizations must not engage in activities outside their stated purposes, particularly any financial transactions involving third parties, without proper authorization.

The Ethiopian government referenced the Civil Society Organizations Law (Proclamation 1113/2011), which governs the registration and operation of such groups. Authorities stated that the law must be followed strictly, and the actions taken by the government were in response to concerns over transparency and proper usage of funds.

Further, the authorities urged that any further violations or failure to comply with the regulations would lead to more severe consequences. They also indicated that monitoring and further support would be forthcoming as the situation unfolded.

In light of the ongoing investigations and actions, USAID’s funding has been halted. U.S. officials, including U.S. Secretary of State, have expressed concerns over the impact this may have on humanitarian aid efforts, particularly those related to food aid and child nutrition in refugee camps. U.S. civil society organizations working in Ethiopia, such as Action Against Hunger, have also raised alarms about the disruptions in their ability to operate.

This decision comes after President Donald Trump’s administration announced a shift in its foreign aid policy, with an emphasis on prioritizing American interests. The government is expected to review its foreign assistance policies and the allocation of funding, as it attempts to reconcile domestic interests with international obligations.

The Ethiopian government has promised to closely monitor the situation and take appropriate action to ensure that all organizations comply with local laws and regulations. Authorities will also continue to provide updates as the situation develops.