09 February 2018
An OIG investigation found approximately US$63,000 of non-compliant expenditures mainly related to cash advances for activities organized by the Kenyan national tuberculosis program. The Global Fund has since instructed the program to put in place stronger oversight measures and reduce cash advances.
The OIG received an allegation of potential misuse of funds in October 2016. A subsequent Local Fund Agent review of 2016 training expenditures organized by the National Tuberculosis, Leprosy and Lung Disease Program (NTLDP) also suggested potential fraud. As a result, the OIG opened an investigation.
NTLDP could not provide reasonable assurance that 120 people had participated in various activities, including training events and meetings, despite having received per diems and/or transport allowances. In addition, two other activities, a quarterly review meeting and another training event, reportedly conducted by NTLDP could not be verified. The investigators also found that 17 people had received per diems although they had not attended any activities.
As of May 2017, over 70% of payments of per diems and transport allowances are now made electronically rather than by cash advances.
The Global Fund is seeking to recover the non-compliant funds and ensure that NTLDP complies with the internal controls it has put in place to guarantee that program activities are attended by the right participants. To date, NTLDP has refunded US$11,920 of the non-compliant funds.