Two principal recipients of malaria grants in Nigeria have been implicated in fraud and financial irregularities, following an investigation by the Office of the Inspector General (OIG), and have committed to returning some $350,000 to the Fund.
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The Global Fund will seek to recover some US$1.3 million in misused funds following an investigation by the Office of the Inspector General into financial mismanagement by the government principal recipient, the National Department of Health.
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.
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.
Since the Global Fund’s Indirect Cost Recovery (ICR) policy was adopted on 18 April 2011, a number of concerns have been raised about the interpretation and application of the policy. This article describes the concerns and provides responses from the Global Fund Secretariat.
The Global Fund has reversed a demand that it imposed three years ago that the Tropical Disease Foundation (TDF), a principal recipient (PR) in the Philippines, repay the Fund $1.77 million of grant money.
"Losses" of $2.6 million identified by the OIG
Two of the PRs dispute some of the OIG's findings
Report touches on several issues related to the OIG
Sub-committee says that imposing more and more requirements on implementers may cause some of them to "walk away"
TAC has published details of the theft
Editor's Note: This article contains information on a form of fraud that could occur in organisations that have not put adequate accounting safeguards in place.