APACHA Press release ::
The global fund suspension of grant to Philippines raises several critical questions about the governance of the Global Fund grants. APACHA is concerned about the governance function of CCMs.
Asian People's Alliance for Combating HIV&AIDS (APACHA) , calls all the key stake holders to take urgent corrective measures, so that in future such events will not compromise the treatment needs of people living with HIV.
According to a press release, the Global Fund to Fight AIDS, Tuberculosis and Malaria has suspended all five of its grants to the Tropical Disease Foundation (TDF) in the Philippines after evidence emerged of unauthorized expenditure. TDF's grants for malaria, tuberculosis and HIV will be transferred to new principal recipients in the country and the overall funding to continue through new principal recipients
According to this press release the Global Fund's investigation by the Office of the Inspector General revealed that around US$ 1 million out of total disbursements of US$ 85 million were spent on activities beyond the terms of the grant agreement.
Apparently, the Global Fund they have taken all the necessary measures to ensure that life-saving treatment and prevention activities financed by the Global Fund will not be disrupted, pending the signing of agreements with the new principal recipients.
Currently, there are 636 people on ARV treatment in the Philippines and 811 people being treatedfor multi-drug resistant tuberculosis. Other grants awarded earlier to the Department of Health and Philippines Shell Foundation will not be affected by this suspension.
However, the transition of the grant from one PR to another PR â€" provided all the remaining money is recovered from the first PR- may impact the logistics of treatment and enrolment of new patients. Although the patients who are currently registered will continue to receive the treatment the scaling up will definitely slow down. We have yet to refine our methods to estimate the opportunity cost of such disturbances.
Apparently the CCM failed to nominate a new PR in its first meeting, None of the UN agencies including WHO did not volunteered to be a PR.
This situation raises several critical questions and APACHA call all the key stake holders to take urgent steps to ensure such events will not be happening in other grants released by the Global Fund
- APACHA is concerned about robustness of private audit companies performing the role of Local Fund Agents (LFA)'s who could not even detect such big mistakes and public sector money has to be at the mercy of whistle blowers for their protection against fraud.
- APACHA the Global Fund congratulated for their prompt action. However, we applaud the courage of the anonymous whistle blowers.
- APACHA is concerned about the apparent failure of CCMs fiduciary responsibility and in its overall governance function, Global fund should ensure such incidents will not occur in other countries as well.
- APACHA call for better monitoring mechanisms, so that the Civil Society members role in ensuring the good governance of PR is ensured. We call for further discussion on, what the Civil society can do to make CCM play its oversight role proactively?
- APACHA calls for a self imposed code of conduct for Civil Society members as a PR or SR
- APACHA is concerned about the lack of readiness among various UN agencies to take up the responsibility of managing the portfolio on an emergency basis, particularly when it affects life saving treatment?
- It is welcome to note that a small group of CS members were expressing their anxiety in public through e mail networks
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References:
http://www.thegloba lfund.org/ en/pressreleases /?pr=pr_090924
http://www.tdf.org.ph/
http://www.tdf.org.ph/?p= 1047
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