Misappropriation

2.

Despite serious concerns about risk, Global Fund approves $316 million in new funding for TB/HIV grants to Nigeria

17 Dec 2015
Grants are considered critical to maintaining and scaling up existing services
Fund says the standard approach to risk mitigation in Nigeria is not sufficient

The Secretariat is recruiting state-level fund portfolio managers for Nigeria

7.

OIG investigations in 2015 show that misuse of funds occurs most often in procurement, construction and training

18 Nov 2015
OIG calls for a more systematic approach to prevent misconduct

According to the Office of the Inspector General, the main source of misconduct identified this year through its investigations has been activities related to procurement. “Non-competitive tenders, fictitious invoicing and collusion between suppliers and procurement or finance managers have frequently led to fraud,” the OIG said.

This information was contained in the semi-annual progress report prepared by the OIG for the Board.

5.

OIG identifies irregularities in the implementation of HIV grants to Kazakhstan

20 Jan 2014
PR has promised to reimburse the amount involved, $105,227

An investigation by the Office of the Inspector General (OIG) into three HIV grants in Kazakhstan administered by the principal recipient, the Republican Center for Prophylactics and Control of AIDS (RCAIDS), has found evidence of attempted misappropriation, misuse of grant funds, misrepresentation and anti-competitive and collusive practices.

3.

OIG Releases Reports on Audits and a Diagnostic Review in Four Countries

1 Oct 2012
$3.3 million in unsupported expenditures in one country need to be repaid
PRs, CCMs are taking steps to address weaknesses identified by the OIG

Within the last month, the Office of the Inspector General (OIG) has released four reports, three on audits conducted in Angola, Mozambique and Senegal, and one on a diagnostic review undertaken in Myanmar.

In its reports, the OIG did not identify any instances of misappropriation of funds. However, in the Mozambique audit, the OIG said that some issues “call for further investigation” and are being pursued.

5.

OIG Releases Report on Its Investigation of an SR in Bangladesh

15 Aug 2012
Alleges that $1.9 million was misappropriated
SR disagrees with the findings

In early July, the Office of the Inspector General (OIG) released its final report on an investigation into Padakhep Manabik Unnayan Kendra (PMUK), a sub-recipient (SR) and a sub-SR for several HIV grants in Bangladesh. The investigation was conducted between May 2011 and March 2012.

1.

OIG Releases Reports on Three Audits and Four Diagnostic Reviews

15 Aug 2012
No evidence of grant funds being misappropriated
Ineligible and unsupported expenditures of $4 million identified in one audit; country has agreed to pay back at least $3.3 million

In the first week of August, the Office of the Inspector General (OIG) released seven new reports covering audits conducted in Burundi, Malawi and Ukraine; and diagnostic reviews undertaken in Eritrea, Gambia, Georgia and Peru.

Audits

1.

Global Fund Freezes Disbursements to Nigerian PR

25 Jul 2011

Nigerian media cite preliminary findings of misuse of grant funds contained in draft OIG audit report

Final audit report has not yet been released

The Global Fund has temporarily frozen disbursements to one principal recipient (PR) in Nigeria, amidst allegations of misappropriation of funds.

1.

OIG Finds Serious Deficiencies in Performance of All Four PRs in Zambia

2 Nov 2010

All four principal recipients (PRs) implementing Rounds 1 and 4 Global Fund grants in Zambia, two of them government and two NGO, have shown evidence of significant financial management and control weaknesses, episodes of misappropriation and fraud, and losses of grant funds. This is the overarching finding of an audit conducted in 2009 by the Global Fund's Office of the Inspector General (OIG).

9.

Global Fund Inspector General

24 Apr 2005

As a result of pressure from the United States, the Board agreed to appoint an Inspector General. The role of the office of the inspector general will be to assess whether the Global Fund and its grant recipients are using the money in the ways intended.

2.

Feachem On The Record

10 Jan 2003

Richard Feachem, Executive Director of the Global Fund, provided some useful insights during a media conference call on 19 November 2002 organized by RESULTS and Health GAP (Global Access Project). Some quotes are as follows:

On the AIDS pandemic:

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