The Global Fund continues to make progress – slowly – in recovering amounts owing due to fraud or improper use of grant monies based on reports by the Office of the Inspector General. From the inception of the Fund to 30 June 2015, $39.9 million has been recovered, compared to $34.4 million six months ago and $29.2 million a year ago.
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There have been progressive improvements in “organizational maturity” since the Global Fund began its transformation process in 2012, but the Fund still has some distance to travel, according to the Office of the Inspector General (OIG).
The Office of the Inspector General (OIG) issued its annual report for 2014 and reported to the Board on the implementation of agreed management actions (AMAs) by the Secretariat as part of a presentation at the 33rd Board meeting on 31 March. In a separate report, the Secretariat provided the Board with an update on recoveries.
As of 19 September 2013, $118 million in losses had been identified by the Office of the Inspector General (OIG), of which $23.8 million (20%) had been recovered. Written commitments to repay a further $10.4 million had been obtained.
This information was contained in a Losses and Recoveries Report prepared for the Global Fund Board meeting on 7–8 November in Geneva.
The Global Fund Secretariat says that it has taken measures to speed up the recovery of amounts identified as “losses” by the Office of the Inspector General (OIG), and that it expects to be able to report significant progress during the rest of 2013.
The Global Fund has reversed a demand that it imposed three years ago that the Tropical Disease Foundation (TDF), a principal recipient (PR) in the Philippines, repay the Fund $1.77 million of grant money.
"Losses" of $2.6 million identified by the OIG
Two of the PRs dispute some of the OIG's findings
Report touches on several issues related to the OIG
Sub-committee says that imposing more and more requirements on implementers may cause some of them to "walk away"
The dominant story in the Ugandan media during the past two weeks has been the Global Fund's decision to temporarily suspend its grants to that country. As reported in the last issue of GFO, the suspension took place after a report by a "whistleblower" caused the Fund to commission an investigation by PricewaterhouseCoopers, the Local Fund Agent (LFA).