Global Fund reports steady progress in recovering outstanding amounts owing

Author:

David Garmaise

Article Type:

Article Number: 1

In the last half of 2017, the “last resort” 2-for-1 reductions in allocations was used five times

ABSTRACT As of 31 December 2017, only 5% of total recoverable amounts related to OIG audits and investigations remained outstanding, according to a report prepared for the last Board meeting. This reflects an increase in recoveries and a decreasing trend in the number of new cases.

Good progress is being made in recoveries. During the last half of 2017, total outstanding recoveries related to audits and investigations by the Office of the Inspector General (OIG) declined by $5.8 million to $5.3 million. As of 31 December 2017, only 5% of total OIG-related recoverable amounts remained outstanding.

This information was contained in the Secretariat’s semi-annual report on recoveries of outstanding amounts owed the Global Fund by implementers. The 95% recovery rate reflects an increase in the resolution of recovery cases and a decreasing trend in the number of new cases.

From the inception of the recoveries process to the end of 2017, $78.5 million in OIG-related recoveries has been recouped, and written commitments for a further $10.8 million have been obtained.

With respect to recoveries not specifically related to OIG audits and investigations, as of 31 December 2017 the outstanding balance amounted to $11.6 million. This amount is distributed amongst 36 grant implementers in 25 countries with a median recoverable balance of $71,527.

In the last half of 2017, the “last resort” 2-for-1 reductions to allocations was employed five times, resolving more than $2 million of outstanding recoverables (see table).

Table: Cases involving use of 2-for-1 reductions to allocation, last half of 2017 ($)

Country or region	Recoverable amount	Reduction in allocation
Kyrgyzstan (OIG)	120,948	241,896
MC W. Pacific and Solomon Is. (Non-OIG)	351,139	702,278
Guinea (Non-OIG)	112,354	224,708
Djibouti (OIG)	1,300,000	2,600,000
Burundi (OIG)	143,429	286,858
Total	2,027,870	4,055,740

 

The information in this article is taken from Board Document GF-B39-21 (Recoveries Report for the Period Ending 31 December 2017), which is available at www.theglobalfund.org/en/board/meetings/39. Some of the figures in the table have been updated based on information provided to Aidspan by the Secretariat to correct errors in the original document.