08 April 2022
An investigation by the Office of the Inspector General has discovered systemic fraud and misappropriation by staff of the Liberian Ministry of Health (MoH), a grant Principal Recipient. We found non-compliant expenditures and/or various types of wrongdoing in 91% of the expenditures reviewed. Non-compliant expenditures totaled US$1.1 million.
Staff of the National AIDS Control Program conducted fraudulent procurements of vehicle repairs and advertising services. No assurance could be provided over program delivery in 75% of MoH field activities that we reviewed, and the MoH overcharged for daily subsistence allowances and misused grant funds by providing incorrect allowances and catering expenses.
MoH controls, policies, and oversight to mitigate fraud and misappropriation were either insufficient or did not exist. The Global Fund has implemented internal controls to address this issue, and further controls will be implemented as a result of this investigation.
The Global Fund’s Fiscal Agent did not adequately mitigate the risk of fraud, and engaged in conflicts of interest and misappropriation, including accepting grant funds for DSA and fuel coupons for activities that did not take place.
The Global Fund Secretariat was aware of fraud red flags and other wrongdoing in MoH-managed grants from 2015, but did not report the matters at issue in this investigation to the OIG.