Investigation in Eswatini
20 August 2018
OIG investigators found that a staff member at the Family Life Association of Swaziland (FLAS), a Sub-recipient of Global Fund grants for tackling HIV/AIDS, was improperly diverting funds from FLAS’s mobile money account to his own account and to other unauthorized accounts. These fraudulent activities were possible because of insufficient supervision by FLAS management and inadequate oversight and monitoring, by the Principal Recipient, the Co-ordinating Assembly of Non-Governmental Organizations (CANGO).
CANGO has since taken over management of FLAS’s mobile money account and now retains full responsibility for all transfers associated with the Global Fund programs. The Global Fund Secretariat is working with CANGO to develop standardized policies, procedures and guidelines for managing financial operations, such as the mobile money system, and for assessing, monitoring and evaluating Sub-recipients.
Mobile money technology was first introduced in 2016 during a mass bed net distribution campaign in Africa, with successful results. The Global Fund supports increasing the usage of this technology, recognizing its value in improving financial management and decreasing theft, fraud and corruption.