USAID’s Office of Inspector General (OIG) initiated an investigation into alleged fraud under the Paycheck Protection Program (PPP). A GS-15 USAID employee was alleged to have received approximately $4 million in PPP funds. Upon further research, OIG developed evidence that exonerated the employee.
OIG found the employee inherited a minority ownership stake in a small business. Due to this ownership stake, the employee’s signature was required for the small business to obtain a PPP loan. However, OIG found that the employee did not directly receive the PPP funds and did not conduct work on behalf of the small business. Furthermore, the employee had consulted with and followed the advice of USAID ethics officials related to signing the documentation to obtain the PPP loans on behalf of the small business.