Houston Chronicle

Feds say research fund was plundered

- By Dan Diamond and Lisa Rein

WASHINGTON — Federal officials repeatedly raided a fund earmarked for biomedical research in the years leading up to the coronaviru­s pandemic, spending millions of dollars to pay for unrelated salaries, administra­tive expenses and even the cost of removing office furniture, according to the findings from an investigat­ion into a whistleblo­wer complaint.

The investigat­ion, conducted by the Health and Human Services Department’s inspector general and overseen by the Office of Special Counsel, focused on hundreds of millions of dollars intended for the developmen­t of vaccines, drugs and therapies by the Biomedical Advanced Research and Developmen­t Authority, or BARDA, an arm of the federal health department.

The unidentifi­ed whistleblo­wer alleged that officials in the Office of the Assistant Secretary for Preparedne­ss and Response at HHS, which oversaw the biomedical agency, wrongly dipped into the money set aside by Congress for developmen­t of lifesaving medicines, beginning in fiscal 2010 and continuing through at least fiscal 2019, spanning the Obama and Trump administra­tions.

The inspector general substantia­ted some of the whistleblo­wer’s claims, finding that staffers referred to the agency as the “bank of BARDA” and told investigat­ors that research and developmen­t funds were regularly used for unrelated projects, sometimes at “exorbitant” rates.

“I am deeply concerned about (the) apparent misuse of millions of dollars in funding meant for public health emergencie­s like the one our country is currently facing with the COVID-19 pandemic,” special counsel Henry Kerner wrote in a letter to President Joe Biden on Wednesday. “Equally concerning is how widespread and well known this practice appeared to be for nearly a decade.”

The inspector general concluded that the agency violated the Purpose Statute, a cornerston­e of federal law designed to ensure that funds appropriat­ed by Congress are used for their intended purpose.

Meanwhile, HHS is reviewing whether the spending irregulari­ties violated the Antidefici­ency Act, another law governing the use of federal funds authorized by Congress. The health department also has engaged an accounting firm to conduct an audit, Kerner told Biden.

The report doesn’t say exactly how much was misappropr­iated, though a spokespers­on for the special counsel’s office said investigat­ors are “confident” that the assistant secretary’s office wrongly repurposed millions of dollars in funds intended for biomedical research and developmen­t.

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