Office of the Inspector General

Investigation in Papua New Guinea

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.

  • Global Fund Grant in Papua New Guinea (GF-OIG-18-011 - 10 July 2018)
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