"I don’t see any reason why this would harm our relations with the United States," Hossain told reporters when asked about the issue. His comments followed a statement from the Ministry of Foreign Affairs on Monday, which rejected Trump’s allegation that USAID had provided $29 million to a company owned by two individuals in Bangladesh.
Hossain emphasized that President Trump’s remarks were not directed at any specific individuals or organizations. "We have not found any evidence to support such claims," he explained. “No investigation has been conducted, but we sought clarification on the matter."
He clarified that the $29 million had been allocated to an American organization, which collaborates with local NGOs in Bangladesh. The funds, he said, had been properly channeled through the appropriate systems, and no money had been provided directly to two individuals as suggested by Trump.
When asked if the President’s comments were inflammatory, Hossain stated, "I don’t consider them to be provocative." He added that there was no need to exaggerate the issue further.
Regarding the use of the term “untrue” in Bangladesh’s response, Hossain explained, "It was necessary to state that the claim is not accurate, as we found no basis for it. Therefore, we called it incorrect."
The Ministry of Foreign Affairs reiterated that such projects are carried out under the Development Objective Assistance Agreement (DOAG) between Bangladesh and the United States, ensuring that no individual or entity exerts undue influence over decision-making.
The controversy began after Trump’s comments during a White House Governors Working Session on February 20, where he alleged that $29 million in USAID funds had been funneled to a small, obscure firm run by two individuals. "Two people! They're very happy. Very rich. They'll be on the cover of a top business magazine — for being great scammers," Trump quipped.
At another event on February 21, Trump again claimed that USAID had used the funds to support a “radical left communist” in Bangladesh.
However, USAID’s official records show that the funds were part of a project managed by Democracy International (DI), a US-registered organization selected through a competitive bidding process. The project, initially set with a budget of $14 million, was co-funded by the UK's development agency DFID (now FCDO), which pledged an additional $10 million.
Hossain remains confident that the matter will not affect bilateral relations, and that the issue will be resolved promptly through dialogue.