New OIG report details rise in salary fraud

22.06.2020

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An OIG investigation report details the rise in 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 sustainability funds or salary subsidy 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 OIG’s 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.

You can learn more about salary fraud in OIG’s information video.

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