04 May 2020
In the Democratic Republic of Congo, Population Services International implemented a Global Fund malaria grant worth US$173.5 million. OIG’s audit found weaknesses in PSI’s detailed budget monitoring, limited controls over the payments of transactions, and recurring practices of non-competitive procurements. There were also significant non-compliant transactions. From an audit sample of US$77.5 million, OIG found a total non-compliant amount of US$25.3 million, of which US$6.2 million is considered potentially recoverable.
Assurance arrangements in place, as well as the Global Fund Secretariat’s weak grant management oversight and monitoring, were unable to detect or prevent these issues. Overall, OIG found PSI’s financial management of the grant and the Global Fund Secretariat’s oversight of the grant to be ineffective.