A scheme to use the Diaspora to bring jobs to Ireland generated 544 jobs despite having a target of 5,000, according to the IDA chief executive.
Martin Shanahan has told the Public Accounts Committee that the State agency paid €2.2m to Connect Ireland for creating the jobs.
The IDA terminated its contract with Connect Ireland in March of this year.
Mr Shanahan said the agency had also paid Connect Ireland a termination fee of €1.5m in respect of 398 jobs which have yet to be created.
"If all of those jobs are created then great. If more are created, we will pay further money to Connect Ireland. If they are not delivered, we will recoup the monies we have paid to Connect Ireland," he added.
He disputed claims that the IDA had treated Connect Ireland badly.
"IDA Ireland has at all times behaved professionally in relation to the operation of this contract," he said.
He told the committee that the scheme was set up before he became CEO of the IDA, and he would not be replicating it in the future.
"It was evident that the model wasn't ideal" he said, adding: "I don't plan to replicate something which was not ideal."
