Report: 2010 Government Vaccine Dollars Misused on Unrelated Expenses

 

A special fund for vaccine research that was set aside by the U.S. Department of Health and Human Services in 2010 has been misused to pay for unrelated expenses, a government report shows.

In a letter to newly-inaugurated President Joe Biden and Congress, the U.S. Office of Special Counsel (OSC) said millions of dollars intended to be used to bolster preparedness for public health emergencies such as the ongoing COVID-19 pandemic and other potential viral outbreaks, have been flagrantly misused to finance other expenses. 

The funds were reportedly used for legal services, salaries, administrative expenses and even the removal of office furniture.

In an announcement Wednesday, the OSC said it was alerted to the misuse of the funds intended for the Biomedical Advanced Research and Development Authority by a whistleblower. The funds had been misused since at least 2010, the OSC said. The funds were misused by the Office of Assistant Secretary for Preparedness and Response (ASPR), OSC said. Additionally, the misuse of the funds had never been reported to Congress. The report reveals that the practice of using BARDA funds for non-BARDA purposes was so common, there was even a name for it within the agency, the “Bank of BARDA.”

It is unknown the exact amount of funds that were misused. However, in its announcement, OSC said there is evidence that at least $25 million was taken from the fund as recently as 2019. From 2007 to 2016, ASPR failed to account for $517.8 million in administrative expenditures when it reported to Congress, OSC said in its announcement. The report found that “ASPR is unable to demonstrate that the[se] BARDA funds were used for their appropriated purposes.”

As a result of the news, an investigation of the agency’s use of the special funds is underway. An investigation conducted by Health and Human Services will attempt to determine potential Antideficiency Act violations. The agency has also hired an outside accounting firm to audit the agency’s use of ARD funding, both of which are estimated to be completed by the summer of 2021, OSC said.

“I am deeply concerned about ASPR’s 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 J. Kerner said in a statement. “Equally concerning is how widespread and well-known this practice appeared to be for nearly a decade, even garnering the nickname ‘Bank of BARDA.’ I urge Congress and HHS to take immediate actions to ensure funding for public health emergencies can no longer be used as a slush-fund for unrelated expenses.”