Problems operationalizing safeguards to mitigate financial risks create delays in implementing Global Fund’s malaria grant to Cambodia, OIG says
OIG investigation reveals small-scale fraud and nepotism involving a sub-recipient of a malaria grant to Cambodia
An investigation by the Office of the Inspector General, initiated in October 2015, has found evidence of small-scale fraudulent payments of per diems as well as nepotism related to field missions billed by a sub-recipient (SR) of a malaria grant to Cambodia, the National Center for Parasitology, Entomology and Malaria Control (CNM).
A dispute over clauses in contracts with a sub-recipient in two malaria grants in Cambodia regarding how travel costs should be accounted for was resolved in December 2015, according to Dr. Luciano Tuseo, who heads the World Health Organization’s malaria program in Cambodia. Dr Tuseo is quoted in an article in IRIN News.
Cambodia's country coordinating mechanism is looking to the expected 1 July signing date for grant disbursements for malaria, HIV and health system strengthening with anticipation, eager to turn the page on a financial scandal involving two of the Global Fund's biggest suppliers of bednets and ranking officials in two government institutions serving as Principal Recipients.
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.
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.
All four principal recipients (PRs) in Cambodia established separate structures parallel to national ones to manage procurement and monitoring and evaluation (M&E) functions within Global Fund grants. The creation of parallel structures goes against the intention of core Global Fund principles that call for the use and strengthening of national systems.
The Global Fund Board has approved three of the seven Round 7 proposals whose original rejection had been appealed by the applicants. The newly approved proposals are a malaria proposal from Azerbaijan that will cost $2.5 million over the first two years, a TB proposal from Cambodia that will cost $8.7 million, and a TB proposal from Zambia that will cost $4.1 million.