Chemonics

Chemonics International
ESOP
Industry International Development
Founded 1975
Headquarters Washington, DC, USA
Key people
 Susanna Mudge (President and CEO)
Services Development project design, management, and implementation
Number of employees
 3,500
Website www.chemonics.com

Chemonics International is a private international development company that works for bilateral and multilateral donors and the private sector to manage projects in developing countries. Chemonics is employee owned[1] and ISO-9001 quality certified[2] for its services. The company's headquarters is in Washington, D.C. where about 15% of staff are based, with the rest spread around the world.

History

Chemonics was founded in 1975 by the company’s first president, Thurston F. (Tony) Teele.[3] Its fourth and current president is Susanna Mudge.[4] Its first projects included agribusiness studies in Cameroon and Kenya for USAID, which remains the company’s largest client. The company launched its first long-term development projects in Mali and then in Asia in 1977.[5] In the 1980s, Chemonics began managing projects in other technical areas, such as municipal governance, finance, environment and infrastructure. It also broadened its geographic presence to include the Middle East, Central and Eastern Europe, Latin America, and the Caribbean. To date, it has worked in 145 countries worldwide.[6] In the 1990s, Chemonics created an Employee Stock Ownership Plan to give employees a stake on the company. In 2010, the company became the first development company to achieve an ISO 9001 certification for its Quality Management System. The following year, it transitioned to 100% employee ownership.

Criticism

Chemonics has been subject to frequent criticism from the US Agency for International Development (USAID) Office of Inspector General (OIG) for their work on several multi-million dollar aid contracts.

Haiti Recovery Initiative

In 2012 Chemonics came under scrutiny by the OIG for their work in Haiti after the 2010 earthquake. Chemonics was the largest single recipient of post-earthquake funds from USAID, receiving over $196 million in contracts[7] many of which were "no-bid."[8]

Audits specifically cited Chemonics lack of a comprehensive monitoring and evaluation plan and that "some of the performance indicators Chemonics developed were not well-defined."[9] Chemonics also spent more than 75% of program budgets on material and equipment when an expenditure of only 30% was planned.[10]

An Inspector General's report also found that local communities were not sufficiently involved with Chemonics' work and stated "Chemonics used contractors from Port-au-Prince to implement a number of activities in Cap-Haitien and Saint-Marc; these contractors brought their own people to do the jobs instead of hiring locals."[9] When locals were required by USAID, Chemonics' policies "limited the transparency of the selection process and increase the risk of corruption or favoritism by granting decision-making authority to a few individuals."[10]

Afghanistan

In November 2006, USAID Afghanistan awarded a $62 million contract to Chemonics, with an expected end date of March 2010. A 2008 audit of the contract by OIG found that Chemonics' "results fell considerably short of intended results" and "buildings constructed by Chemonics’ subcontractors were not acceptable because of significant construction defects."[11] Additionally, Chemonics was cited for purchasing $37,573 in restricted commodities.

Clients

Chemonics is a contractor of the US Agency for International Development, and has also worked for the World Bank, International Finance Corporation, Swedish International Development Cooperation Agency, the Millennium Challenge Corporation, the IADB, the Asian Development Bank, the African Development Bank, the United States Department of Defense Humanitarian Affairs Program, Bill and Melinda Gates Foundation, the UN World Food Programme, DFID, AusAID, and GIZ.[12]

References

  1. ↑ "Our Commitment to Staff". Chemonics. Retrieved 2014-01-20.
  2. ↑ http://www.chemonics.com/OurStory/OurApproach/Documents/Chem84833cert.pdf
  3. ↑ "Obituaries". washingtonpost.com. 2005-04-02. Retrieved 2014-01-20.
  4. ↑ "Susi Mudge Becomes CEO of". Chemonics. 2013-04-01. Retrieved 2014-01-20.
  5. ↑ "Our History". Chemonics. Retrieved 2014-01-20.
  6. ↑ "Our Work". Chemonics. Retrieved 2014-01-20.
  7. ↑ "Breaking Open the Black Box" (PDF). Center for Economic and Policy Research. April 2013. Retrieved 2015-04-25.
  8. ↑ Mendoza, Martha (2010-12-12). "Outsourcing quake assistance: Haitian contractors get only 1.6% of U.S. aid". Retrieved 2015-04-25.
  9. ↑ 9.0 9.1 "Audit of USAID's Haiti Recovery Initiative Activities Managed By Office of Transition Initiatives" (PDF). US Agency for International Development Office of Inspector General. 2012-09-26. Retrieved 2015-04-25.
  10. ↑ 10.0 10.1 "Audit of USAID's Cash-for-Work Activities in Haiti" (PDF). US Agency for International Development Office of Inspector General. 2010-09-24. Retrieved 2015-04-25.
  11. ↑ "Audit of USAID/Afghanistan's Accelerating Sustainable Agriculture Program" (PDF). US Agency for International Development Office of Inspector General. 2008-08-08. Retrieved 2015-04-25.
  12. ↑ "Clients". Chemonics. Retrieved 2014-01-20.