In the last two years, the Global Fund has implemented a comprehensive set of measures to better manage risk, particularly the risk of fraud and misappropriation of grant funds. The Fund has established a Grant Management Assurance Framework (also referred to as the “risk framework”) that sets out the Global Fund’s general approach to managing risk.
Editor's Note: In the session on "The Global Fund: The Next 5 Years" at the International AIDS Conference in Washington, D.C. on 26 July, Mireille Guigaz, Ambassador of France for the Fight Against HIV and Communicable Diseases, and representative of France on the Global Fund Board, described what she saw as the opportunities, challenges and risks for the Fund.
In Indonesia, the dependency of the government on foreign aid is a matter of great concern. Global Fund money is used by the government as an excuse not to allocate government funding for HIV prevention, treatment, care and support.
Deficiencies in the oversight of procurement and supply management (PSM) arrangements may be exposing Global Fund grants to unnecessary and unacceptable risks. This is one of the conclusions of an audit report released by the Fund's Office of the Inspector General (OIG) in April 2010.
The Global Fund Secretariat acknowledges that it has not done all it could have done to systematically tackle issues related to its grant-management processes raised by the Office of the Inspector General (OIG). But it says that it has acted quickly and decisively whenever Global Fund monies were at risk.