Global Fund Investigation in Yemen
26 January 2015
This investigation report is part of a backlog of cases relating to investigations started before 2012 (so-called ‘legacy cases’) that the Office of the Inspector General is now able to finalize and publish thanks to increased staff headcount.
The Office of the Inspector General found that the National Tuberculosis Control Program (NTCP), a recipient of Global Fund grants in Yemen, misrepresented information, accepted inappropriate gratuities and colluded with a supplier called Lab-Tec. As a result, the Global Fund is seeking to recover USD 15,712 of misused funds and will replace NTCP.
Following an investigation last year, the OIG concluded that NTCP and Lab-Tec colluded to falsely present Lab-Tec as an authorized international procurement agent, a requirement under the Global Fund grant agreement. From 2009-2010, NTCP awarded Lab-Tec four contracts to supply lab equipment, lab reagents, computers and vehicles for a total of USD 680,115. Linked to the award of these contracts, two NTCP employees accepted inappropriate gratuities of USD 7,300 from Lab-Tec. NCTP sole-sourced contracts to Lab-Tec and as a result paid higher than reasonable prices for some of the goods, estimated at USD 15,712.
In response, the Global Fund has taken the following corrective actions: health and non-health products are now procured through UN agencies or through the Global Fund’s Pooled Procurement Mechanism; the scope of the Local Fund Agent has been expanded to provide closer oversight in Yemen; in December 2013, the Secretariat invoked the Additional Safeguards Policy to nominate a new Principal Recipient and to directly contract external auditors for the audits of all grants.
To date, the Global Fund has disbursed to USD 67,866,194 to Yemen. There are 1,100 people currently on antiretroviral treatment, 27,700 new smear-positive tuberculosis cases have been detected and treated and 3,100,000 bed nets have been distributed.
- Global Fund Grants to the Republic of Yemen (GF-OIG-15-001 - 19 January 2015)
download [ download in English ]
###
The Office of the Inspector General works to ensure that the Global Fund invests the world’s money in the most effective way possible in the fight against AIDS, tuberculosis and malaria. Through audits, investigations, oversight and consultancy work, it makes objective and transparent recommendations to promote good practice, reduce risk and condemn abuse.
Established in 2005, the Office of the Inspector General is an independent yet integral part of the Global Fund. It is accountable to the Board through its Audit and Ethics Committee and serves the interests of all Global Fund stakeholders. Its work conforms to the International Standards for the Professional Practice of Internal Auditing and the Uniform Guidelines for Investigations of the Conference of International Investigators.
The Office of the Inspector General believes that every dollar counts and has zero tolerance for fraud, corruption and waste. Through its whistle-blowing channels, the Office of the Inspector General encourages all to come forward to point out any irregularities that prevent Global Fund resources from reaching those who need them.