According to the Global Fund'sOffice of the Inspector General (OIG):
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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.
The Global Fund last month discontinued funding for Years 4 and 5 of Zambia's Round 4 HIV/AIDS grant because the PR - the Ministry of Finance and National Planning - failed to meet the conditions imposed when Phase 2 of the grant was approved in 2008. The conditions were that the PR utilise at least 50% of the grant funds disbursed in Year 3, and that an overall rating of B1 or higher be achieved during Year 3.
A Global Fund Board committee has concluded that reports from the Fund's Office of the Inspector General (OIG) reveal a clear lack of focus by certain PRs on building the long-term capacity of national systems. The committee said that this is something that needs to be more fully addressed through the Global Fund's policies and grant oversight.
As mentioned in Article 1, Round 10 applicants have the option of submitting a consolidated proposal, instead of a regular proposal, if they are eligible and ready to transition to a single stream of funding.
The role of the CCM in overseeing the implementation of grants is not well understood by most CCMs. As a result, CCM oversight is not working in most countries.
The announcement by the Global Fund that starting with Round 8, it recommends dual-track financing (in which there are one or more PRs from the government sector and one or more from the various non-government sectors) throws increased attention on the need, and the possibilities, for PRs from NGOs, FBOs and the private sector.