Office of the Inspector General
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).
The management and implementation of Global Fund grants in the Republic of the Congo is “not satisfactory.” This is the main conclusion of an audit of five grants to the Republic of Congo undertaken by the Office of the Inspector General (OIG).
Major improvements are needed in the management and implementation of Global Fund grants in India. This is the main conclusion of an audit of 10 grants to India undertaken by the Office of the Inspector General (OIG).
by Bernard Rivers
I was recently invited by a university in the UK to serve as a visiting fellow for most of this year while conducting research on the Global Fund. I have to raise my own funding for this project, so the only advantage of the fellowship is that it provides a label to hang round my neck. But that’s exactly what I wanted, so I accepted with thanks.