People protest outside the USAID building in Washington against the Trump administration's plans to shut down the agency. Reuters
People protest outside the USAID building in Washington against the Trump administration's plans to shut down the agency. Reuters
People protest outside the USAID building in Washington against the Trump administration's plans to shut down the agency. Reuters
People protest outside the USAID building in Washington against the Trump administration's plans to shut down the agency. Reuters

Judge halts Trump order to place USAID workers on leave


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A federal judge in Washington on Friday ordered a temporary block on the Trump administration's move to place thousands of employees of the US Agency for International Development on leave and to give those working abroad a 30-day deadline to return to the US.

US District Judge Carl Nichols, who was nominated by President Donald Trump during his first term, partially granted a request from the largest government workers' union and an association of foreign service workers who sued to stop the administration's efforts to close the agency.

His order, which will be in effect until February 14, blocks a plan to place about 2,200 USAID workers on paid leave from Saturday and reinstates about 500 employees who had already been furloughed. It also bars the Trump administration from relocating the agency's workers stationed outside the United States.

Judge Nichols agreed with arguments by the two employee associations that both orders exposed US aid and development workers abroad to unwarranted risk and hardship, saying they had made a "strong showing of irreparable harm" if the court did not intervene.

But the judge declined a request to grant a temporary block on a funding freeze that has shut down the six-decade-old agency and its work, pending more hearings on the workers' lawsuit.

He is scheduled to consider a request for a longer-term pause at a hearing on Wednesday.

The American Foreign Service Association and the American Federation of Government Employees argue that Mr Trump lacks the authority to shut down USAID without approval from Congress. Democratic lawmakers have made the same argument.

“This is a full-scale gutting of virtually all the personnel of an entire agency,” Karla Gilbride, lawyer for the employee associations, told Judge Nichols.

Justice Department lawyer Brett Shumate argued that the administration has all the legal authority it needs to place agency staffers on leave. “The government does this across the board every day,” Mr Shumate said. “That’s what’s happening here. It’s just a large number.”

"The president has decided there is corruption and fraud at USAID," he said.

Mr Trump, in a post on Truth Social on Friday, accused agency – without evidence – of corruption and spending money fraudulently.

He said the corruption at USAID "Is at levels rarely seen before. Close it down!"

Hours after he was inaugurated on January 20, Mr Trump ordered all US foreign aid be paused to ensure it is aligned with his "America First" policy. Chaos has since consumed USAID, which distributes billions of dollars of humanitarian aid around the world.

The State Department issued worldwide stop-work directives after the executive order was issued, effectively freezing all foreign aid with the exception of emergency food assistance. That brought USAID programmes covering life-saving aid across the globe to a grinding halt, in a move that experts warned risked killing people.

The gutting of the agency has largely been overseen by businessman Elon Musk, the world's richest man and a close Trump ally spearheading the president's effort to shrink the federal bureaucracy.

In the 2023 fiscal year, the United States disbursed, partly via USAID, $72 billion of aid worldwide on everything from women's health in conflict zones to access to clean water, HIV/Aids treatments, energy security and anti-corruption work.

It provided 42 per cent of all humanitarian aid tracked by the United Nations in 2024.

With reporting from agencies.

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The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: February 08, 2025, 7:10 AM