Statement on Investigation in Cambodia

14 November 2012

An investigation by the Global Fund's Office of the Inspector General into grants in Cambodia uncovered credible and substantive evidence of serious financial wrongdoing, on procurement and other issues. Immediate action has been taken to protect the health of people supported by Global Fund grants in Cambodia, by adopting safeguards in procurement, financing and management. The Global Fund and country stakeholders are also considering potential changes in implementer arrangements.

The evidence of wrongdoing uncovered by the Global Fund does not diminish the striking successes and impact that Global Fund grants have helped achieve through programs implemented by health officials, civil society organizations and partners in Cambodia. Recently-completed program reviews show an 80 percent decline in malaria deaths over the last decade, and a 43 percent fall in TB prevalence over the same period. These impressive gains, reflecting the hard work and dedication of health workers, civil society and partner organizations, are gaining global recognition.

The Global Fund is committed to maintaining its grants in Cambodia and to expanding safeguards to protect its investments. Experts warn that continuity of funding grants is essential to manage the risk of malaria resistance in the entire Asia Pacific Region, not just in Cambodia. Cutting back on anti-malaria efforts could have severe consequences.

An investigation report by the Office of the Inspector General is being finalized, and is expected to be publicly released once it is completed in the coming weeks. While we cannot comment in any detail on a report that is not yet concluded, the Office of the Inspector General affirms that this report does not include any findings about allegations that officials may have stolen drugs and replaced them with placebos.

The Office of the Inspector General operates independently, and it alone determines the content and timing of its investigation reports. In no case is the timing of a report determined by local officials in any country where an investigation is conducted.

The wrongdoing uncovered in Cambodia is part of an improved focus on risk management and a solutions-oriented approach in all Global Fund operations. The Global Fund is fully committed to principles of transparency, integrity and constructive engagement.