A new analysis of audits and investigations by the office of the Inspector General of the Global Fund to Fight AIDS, Tuberculosis and Malaria has showed that 3.0 percent of funding audited or investigated between 2005 and 2012 had been misspent, fraudulently misappropriated or inadequately accounted for.
As part of the Global Fund’s efforts to effectively prevent and treat disease, serious efforts are made to ensure that all funding is properly handled, disbursed and managed. Wherever impropriety is discovered, it is reported. When funds are misappropriated or improperly spent, they are recovered as fully as possible.
According Chief Risk Officer at the Global Fund, Cees Klumper, the organisation don’t tolerate any misuse of funds, no matter how minor.
Klumper who conducted the analysis said: “Although some of these funds were misspent, and are just ineligible expenses, a small percentage of funds are misappropriated through fraud. We actively pursue and expose all such cases.”
The office of the Inspector General, which is fully independent and reports directly to the Board, plays an indispensable role in helping achieve the mission of the Global Fund by diligently pursuing audits and investigations.
Since it was established in 2005, the office of the Inspector General has compiled 28 reports on audits and investigations that it has carried out in 27 countries, where a total of $3.8 billion has been disbursed, approximately 23 percent of all disbursements that the Global Fund has made to date.
The analysis of the Inspector General’s findings shows that, cumulatively, 3 percent of the funding that was investigated was not spent in compliance with the grant agreements, as follows: Ineligible expenses – or activities not covered by the grant agreements – 1.1 percent, inadequately substantiated due to poor or missing documentation – 1.1 percent, fraud – 0.5 percent, failed to report funds as required – 0.3 percent