Press Release

24 September 2009

GLOBAL FUND SUSPENDS GRANTS TO PHILIPPINES FOUNDATION

Funding to continue through new principal recipients

Geneva – The Global Fund to Fight AIDS, Tuberculosis and Malaria has suspended all five of its grants to the Tropical Disease Foundation (TDF) in the Philippines after evidence emerged of unauthorized expenditure. TDF’s grants for malaria, tuberculosis and HIV will be transferred to new principal recipients in the country.

An investigation by the Office of the Inspector General revealed that around US$ 1 million out of total disbursements of US$ 85 million were spent on activities beyond the terms of the grant agreement. The Global Fund has demanded repayment of the unauthorized expenditures.

The review demonstrated capacity issues within TDF’s overall financial management but the Global Fund continues to value its technical expertise, particularly in multi-drug resistant tuberculosis.

TDF is a principal recipient for five grants: one for tuberculosis and two each for HIV/AIDS and malaria. Its total grant portfolio amounts to US$ 195,225,660. The   suspension means that TDF’s ongoing grants will be transferred to new principal recipients in the country. The Global Fund intends to transfer the grants to new principal recipients based on recommendations from the Country Coordinating Mechanism in the Philippines and expects that normal grant activities can resume quickly.

All necessary measures will be taken to ensure that life-saving treatment and prevention activities financed by the Global Fund will not be disrupted, pending the signing of agreements with the new principal recipients. Currently, there are 636 people on ARV treatment in the Philippines and 811 people being treated for multi-drug resistant tuberculosis. Other grants awarded earlier to the Department of Health and Pilipinas Shell Foundation will not be affected by this suspension.

The Global Fund remains committed to efforts to combat the three diseases in the Philippines and will provide all possible support to enable the quick resumption of full grant-aided activities in the country.

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The Global Fund is a unique global public/private partnership dedicated to attracting and disbursing additional resources to prevent and treat HIV/AIDS, tuberculosis and malaria. This partnership between governments, civil society, the private sector and affected communities represents a new approach to international health financing. The Global Fund works in close collaboration with other bilateral and multilateral organizations to supplement existing efforts dealing with the three diseases.

Since its creation in 2002, Global Fund-supported programs are estimated to have averted more than 3.5 million deaths by providing AIDS treatment for 2.3 million people, anti-tuberculosis treatment for 5.4 million people and by distributing 88 million insecticide-treated bed nets for the prevention of malaria worldwide.  The Global Fund has so far approved funding in 140 countries worth US$ 16 billion.

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Andrew Hurst – Communications
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Marcela Rojo – Communications
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