The domestic unit of the multinational nonprofit organisation, Interactive Research and Development SA (IRD SA) has agreed to pay more than R10 million to US authorities after being accused of submitting false claims to the US Agency for International Development (USAID).
This settlement follows allegations that IRD SA “knowingly submitted false claims” for work not performed under a cooperative agreement with USAID. In October 2019, USAID awarded IRD SA a cooperative agreement to deliver healthcare services in South Africa, including TB treatment and prevention across various provinces and districts.
IRD SA knowingly submitted false claims
The agreement also stipulated that IRD SA would employ over 60 staff members to carry out the work. However, a significant delay ensued, and the planned 62 employees could not perform the assigned duties for several months.
Despite these delays, the US Department of Justice found that IRD SA had submitted six vouchers to USAID, falsely certifying compliance with the terms of the award. The vouchers sought reimbursement for unallowable labour costs and other expenses related to workers who had not conducted any services during the delay.
Commitment to protecting federal funds
The US Attorney for the District of South Carolina, Adair Boroughs, said the case demonstrates their commitment to protecting federal funds. Acting special agent in charge, Sean Bottary, noted that the case showed the resolve to hold US foreign assistance award recipients accountable for submitting false claims.
IRD SA, headquartered in Johannesburg, is an affiliate of IRD Global, a nonprofit organisation based in Singapore with affiliates in several countries, including Bangladesh, Indonesia, Nigeria, and Zimbabwe.
This is not the first controversy surrounding IRD. In 2021, the Global Fund, an international health funding organisation co-founded by Bill Gates to combat diseases such as TB, AIDS, and malaria, published an investigative report alleging IRD’s involvement in illicit dealings related to TB grants in a Pakistani hospital.
IRD sought legal action against the Global Fund in South Africa, but the Johannesburg High Court and the Supreme Court of Appeal dismissed the case, citing a lack of jurisdiction.