An OIG investigation in Sierra Leone has found over US$2 million of non-compliant and fraudulent transactions in purchases of goods and services under the Global Fund’s HIV/AIDS and TB/malaria/Health System Strengthening grants during 2016, 2017 and 2018.
For the HIV/AIDS grant, non-compliant procurements included bid-rigging, overcharging, product substitution and non-delivery of goods. The TB/malaria/Health System Strengthening grant was affected by fraudulent procurements and payments, and by overcharging for hotels and catering. The removal of concerned employees from Global Fund programs, and the recovery of associated funds, are the subjects of Agreed Management Actions. At the time, the contracts between the Global Fund and its Fiscal Agents did not include a requirement either to detect fraud, or to report fraud. This will be rectified, going forward.
Procuring health products is critical to the Global Fund’s mission to end the epidemics of AIDS< Tuberculosis and Malaria, with health product procurements representing 40% of overall Global Fund disbursements.
You can learn about bid-rigging and other forms of procurement fraud in this informative OIG video.
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