Office of the Inspector General
DECISION POINT: GF/B31/DP11
All reports on the assurance and investigation work of the Office of the Inspector General (OIG) will be made public under a revised disclosure policy adopted by the Global Fund Board at its 31st meeting in Jakarta, Indonesia.
This will include OIG functional reviews of processes at the Global Fund Secretariat, as well as reports on in-country audits and investigations.
The Global Fund Secretariat will lift the suspensions of two major suppliers of long-lasting impregnated nets (LLINs) who were found to have paid kickbacks to government officials in Cambodia.
Acting on the recommendations of the Sanctions Panel, the Secretariat also imposed three conditions on Vestergaard Frandsen and Sumitomo Chemical Co in order to remain eligible to compete in tenders for future commodity purchases.
An investigation by the Office of the Inspector General (OIG) into three HIV grants in Kazakhstan administered by the principal recipient, the Republican Center for Prophylactics and Control of AIDS (RCAIDS), has found evidence of attempted misappropriation, misuse of grant funds, misrepresentation and anti-competitive and collusive practices.
An investigation by the Office of the Inspector General (OIG) into procurement contracts for five malaria grants to Madagascar has found evidence of non-compliant expenditures, over-priced goods and collusion among suppliers. A report on the investigation was released on 3 January.
OIG Investigation in Cambodia Prompts Suspension of Two Top LLIN Suppliers Over $410,712 in Kickbacks
Two suppliers responsible for nearly 50% of all long-lasting insecticide-treated nets (LLINs) purchased by the Global Fund on behalf of malaria projects worldwide have been suspended following an investigation in Cambodia into widespread fraud and kickbacks paid to government officials.
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 Board has appointed Martin O’Malley to serve as its next Inspector General, a position that requires him to lead the Office of the Inspector General (OIG). The appointment was necessary after the previous Inspector General had his appointment terminated by the Board in November 2012.
In what it describes as a “sea-change,” the Office of the Inspector General (OIG) said that it is moving away from its historical emphasis on country level grants towards “consulting engagements” focusing more on reviewing internal Secretariat processes and the work of other assurance providers.
The OIG says that is has uncovered “credible and substantial evidence” that two suppliers for programmes supported by Global Fund grants in Georgia worked together to steer contracts to each other, and that they were assisted in this effort by several staff members of the principal recipient (PR).