06 July 2022
Fraud and corruption pose multiple risks to the Global Fund: corroding public health institutions and systems, facilitating human rights abuses, hurting the quality and quantity of grant programs and reducing public trust. The OIG assessed the maturity of the Global Fund’s fraud risk management framework against five core components: Fraud Risk Governance, Fraud Risk Assessment, Fraud Control Activities, Fraud Investigation and Corrective Action, and Fraud Risk Monitoring.
We identified a number of key achievements and good practices. The Global Fund has relevant policies and structures to support fraud risk management, fraud risk forms part of the integrated risk management framework, the Global Fund has mature systems and structures to detect and address fraud risks when they occur, and a number of Secretariat initiatives are under way to further improve fraud risk management.
Regarding opportunities for improvement, we noted limited ownership and accountability in addressing cross-functional fraud risks, a lack of specific guidelines on tackling risks inherent in managing medicines and health products at country level, a need to improve documentation of fraud risk considerations during grants’ life cycle, a need for improved due diligence and capacity building of implementers, and a lack of mechanisms to monitor the fraud risk program at enterprise level.