03 June 2019
The Senior Supply Chain Manager of the Global Fund’s lead implementer in Haiti, Organisation Haïtienne de Marketing Social pour la Santé (OHMaSS), colluded with the Director of a third party supplier, JIT Logistics and Transport Company, to obtain a contract for the provision of a warehouse following a public request for proposal in December 2016. The Senior Supply Chain Manager was in direct communication with the Director of JIT Logistics and received multiple draft proposals for review prior to the bid submission deadline. JIT Logistics fraudulently misled OHMaSS by significantly overstating the size of the warehouse facility provided. This resulted in the Principal Recipient incurring higher-than-average costs per square meter of storage space in addition to needing to rent additional space at extra cost.
The OIG concludes that US$216,870, the total amount of Global Fund funds paid in connection with warehouse services provided by JIT Logistics to OHMaSS between January 2017 and October 2017, are non-compliant expenditures. The investigation also exposed weaknesses in the Principal Recipient’s procurement capacity that will be addressed through Agreed Management Actions.
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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.
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