The Global Fund does not tolerate corruption, fraud, misappropriation or abuse of any kind in relation to its grants. As part of the comprehensive risk management framework, the Board requests the Executive Director to take strong, immediate action in all circumstances where the Inspector General has determined that there is credible and substantive evidence of fraud, abuse, misappropriation or corruption involving Global Fund grants.
Such action will include the Executive Director restricting the signature of new grants with the nominated principal recipient(s), if the evidence concerns the nominated principal recipient(s), or of all new grants in the country, if the evidence points to country risks.
Restrictions may also include the suspension of disbursements under existing grants in the affected country or countries, the temporary or permanent debarment of any entity under investigation from receiving grant funding or any other measure deemed appropriate and justified under the circumstances by the Executive Director.
In such situations, the Executive Director shall ensure that measures imposed balance the impact on the country's health systems, other reliant projects and the continuation of the provision of essential services, against the risks to the Global Fund and adherence to the Global Fund's core ethical values and principles. This balance to be struck should not allow any acceptance of fraud.
The Secretariat and the OIG will - each based on their respective role and responsibilities - report on restrictions imposed in relation to any grant(s) in such situations, the specific actions required to lift such restrictions, and the status of the situation. This will be done as soon as possible to the Board via an appropriate mechanism as well as on a regular basis through the FAC and at the Board meeting.
If signature of a new grant with a nominated principal recipient has been restricted, the deadline for signature of a grant agreement shall automatically be extended by a period equal to the period of the restriction in the following limited situations: (i) an OIG investigation or audit by the OIG finds no wrongdoing, or (ii) in the opinion of the Secretariat and OIG, the wrongdoing is not material or the risks to Global Fund grant funds under the new grant are manageable, or (iii) a new principal recipient is identified for the grant under implementation arrangements that address the risks.