An investigation by the Office of the Inspector General (OIG) into procurement in HIV and TB grants to Kazakhstan found evidence of systematic collusion, fraud and corruption by local vendors and other parties that compromised 76 contracts worth $16.5 million. Separately, similar problems on a smaller scale were uncovered in Yemen.
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OIG investigation uncovers evidence of collusion, fraud and corruption in procurement activities in Kazakhstan
The Office of the Inspector General (OIG) has released five new reports – three on audits in Bangladesh, Djibouti and Ghana, and two on investigations in Djibouti and South Africa. All five reports are dated 29 October 2012.
Procedures are tightened
LFA required to do regular spot checks of SRs
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).
Global Fund Inspector General John Parsons is a busy man. He is also very determined. He and his staff of 24 are fully booked through the end of 2010 " and he expects the same to be true next year and the year after.
Ten months ago, the Global Fund put on hold about $95million in potential disbursements under four grants to the Zambia Ministry ofHealth, because of fraud within the ministry that was first reported by awhistleblower. Seven current or former ministry employees were charged by theZambian government in relation to the fraudulent appropriation of about$350,000 from one of the grants.
The Global Fund has suspended disbursements to the Ministry of Health (MoH) of Zambia, which is the principal recipient (PR) for several grants. The Global Fund's Office of the Inspector General (OIG) has concluded that there was fraud in connection with one or more of the grants.
In Mauritania, a full criminal investigation, initiated by the Office of the Mauritanian Inspector General, has led to the arrest of three senior officials in the Executive Secretariat of Mauritania's National AIDS Committee (SENLS), and to the issue of an arrest warrant for a fourth staff member. SENLS is the principal recipient (PR) for Mauritania's Round 5 HIV grant, the only active HIV grant in the country.
In a separate development from that in Mauritania, three senior government officials in Mali have been arrested in connection with alleged fraud with Global Fund grants.
The Office of the Inspector General (OIG) says that "marked progress" has been made in the past year in the systemic fraud case involving Global Fund and other grants in Uganda. (See Issue 113, at www.aidspan.org/gfo, for GFO's most recent coverage on this case.)