The Global Fund has resumed funding for four of the five suspended grants to the Philippines, with different principal recipients (PRs) at the helm - and was expected shortly to sign an agreement with a new PR for the fifth grant. The five grants were suspended in September 2009, following evidence of unauthorised expenditures by the PR, Tropical Disease Foundation (TDF).
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The Global Fund recently released a wide-ranging Frequently Asked Questions (FAQ) document on how to implement decisions made by the Global Fund Board in November 2009 concerning cost-cutting measures and the new grant architecture. The document is entitled "Grant Signing Frequently Asked Questions," though in fact it covers many issues beyond those related to grant signing.
In every country audited by the Global Fund's Office of the Inspector General (OIG) since 2006, there were numerous instances of principal recipients (PRs) not complying with clauses in their grant agreements. The Global Fund does not have mechanisms in place to monitor and enforce compliance with these clauses.
A review by the Global Fund's Inspector General of the Fund's grants to Uganda, four years after the Fund temporarily suspended five grants worth $213 million due to financial mismanagement, has concluded that the Fund should continue to use Uganda's Ministry of Financial Planning and Economic Development (MoFPED) as Principal Recipient (PR).
The Global Fund Board has decided to implement a new funding architecture in order to simplify processes for grant implementers. The centrepiece is the concept of a "single stream of funding" per PR per disease.
The role of the CCM in overseeing the implementation of grants is not well understood by most CCMs. As a result, CCM oversight is not working in most countries.