10 July 2018
A Principal Recipient in Papua New Guinea, Population Services International (PSI), identified fraudulent and non-compliant expenditures in a malaria grant totalling US$551,608. The fraud was facilitated by weak financial controls in its PNG office, which PSI later strengthened. A subsequent OIG investigation found that weaknesses in PSI’s accounting processes had reduced PSI’s ability to detect the fraud and that the same weaknesses continue to constrain financial assurance of its grants. The investigation also found additional non-compliant expenditures in the same grant of US$175,818. PSI has refunded the full amount identified by the OIG. The Secretariat is now working with PSI to substantially enhance its financial oversight of all its Global Fund grants.
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The Office of the Inspector General safeguards the assets, investments, reputation and sustainability of the Global Fund by ensuring that it takes the right action to defeat AIDS, tuberculosis and malaria. Through audits, investigations and consultancy work, it promotes good practice, reduces risk and reports fully and transparently on 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 Global Fund 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 speak out to report fraud, abuse and human rights violations that prevent Global Fund resources from reaching those who need them.