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Interactive Research and Development South Africa NPC (IRD SA) has agreed to pay $671,914 to resolve allegations that the company violated the False Claims Act by knowingly submitting to the U.S. Agency for International Development (USAID) false claims for payment related to employees of IRD SA who were allegedly not working. 

In October 2019, USAID awarded a Cooperative Agreement (the Award) to IRD SA to provide healthcare services in South Africa. The Award’s period of performance was between Oct. 15, 2019, and Jan. 30, 2023. Federal funds were used to make payments to IRD SA under the Award.

These federal funds were processed through a service centre in Charleston, South Carolina. Under the Award, IRD SA agreed to provide a comprehensive package of tuberculosis treatment and prevention services across various provinces or districts in South Africa. Performing such services required a Memorandum of Understanding (MOU) between IRD SA and certain local South African authorities.

Because the execution of the MOU with the local authorities in one of the provinces or districts was delayed for several months, approximately 62 employees of IRD SA were unable to perform Award-related services between January and June 2021. During this time, IRD SA failed to inform USAID that the idled employees weren’t performing such services.

Instead, between March and July 2021, IRD SA submitted six vouchers to USAID that falsely certified compliance with the Award, and that improperly sought reimbursement for non-allowable labour costs and other costs associated with the idled workers.

As a result, IRD SA received and/or retained approximately $335,957 in federal funds related to the idled workers covering the period of January to June 2021.

“We are committed to protecting federal funds and holding companies accountable that fraudulently obtain federal dollars,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “We are thankful for the great work of the USAID Office of Inspector General agents. Their work helps ensure that foreign companies only receive federal funds for services actually rendered.”

“The USAID Office of Inspector General is committed to pursuing those who defraud USAID programs by submitting false claims for services that were not provided,” said Acting Special Agent in Charge Sean Bottary. “This resolution demonstrates our office’s resolve to hold U.S. foreign assistance award recipients accountable.”

The case was investigated by USAID’s Office of Inspector General, along with Assistant U.S. Attorney Stan Ragsdale of the U.S. Attorney’s Office for the District of South Carolina. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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