Office of the Inspector General - Updates

Salary Fraud and Abuse Affecting Global Fund Grants

28 February 2020

There has been a noticeable rise in the number of allegations relating to salary fraud and abuse affecting Global Fund grants. These cover a wide range of alleged wrongdoing, including staff being forced to pay regular kickbacks, unauthorized salary contribution schemes, staff not receiving their full salaries, the submission of fraudulent salary claims, and non-staff receiving salary payments from grant funds.

In Nigeria, senior management at an HIV grant sub-recipient directed and enforced a salary kickback scheme resulting in the misappropriation of US$166,930 of Global Fund grant funds. In Indonesia, a salary subsidy scheme implemented by a sub-recipient resulted in the misdirection of US$35,310 of Global Fund grant funds.

As a result of this investigation, the Global Fund has enhanced its Guidelines for Grant Budgeting to prohibit implementers and Country Coordinating Mechanisms from soliciting payments from staff, or requiring them to contribute to sustainability funds.

  • Salary fraud and abuse affecting Global Fund grants Kickbacks and other unauthorized uses of funds (GF-OIG-20-004 - 28 February 2020)
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For more information:

Dougal Thomson
Email:
Mobile: + 41 (0)79 717 6694

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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.