The Global Fund to Fight AIDS, Tuberculosis and Malaria made two related announcements. The first involves suspension of funding of two malaria grants in Mali with immediate effect and termination of a third grant for tuberculosis (TB) after it found evidence of misappropriation and unjustified expenditure. Management of the two suspended grants will be transferred to a new Principal Recipient. The Global Fund noted that the government of Mali “has condemned the embezzlement of funds and is working with the Global Fund to solve problems and ensure that grant activities can resume as soon as possible.” In addition to the Mali grant suspension, the Global Fund said it is placing grants in five countries on an “Additional Safeguards Policy” list. Grants in countries on this list are subject to closer scrutiny of their grant activities by The Global Fund and have certain restrictions on cash movements. The five countries are Cote d’Ivoire, Djibouti, Mali, Mauritania and Papua New Guinea.

The Global Fund also said it is “putting in place a number of actions to prevent and detect possible misuse of money for training in grants across all the 144 countries that receive funding, as well as drug theft in grants in specific countries. Michel Kazatchkine, the Global Fund’s Executive Director, commented, “The Global Fund tolerates no fraud, and we take public action to stop it, recover lost money and establish new and trustworthy channels for resources so they can reach those in need. Suspensions are the Global Fund’s way of making this clear to all concerned. They are a structured way to work with a country so that together we can put problems behind us and focus on saving lives…”

http://www.theglobalfund.org/en/pressreleases/?pr=pr_101207

Separately, The Global Fund said it will “invite major international funders of drug supplies to developing countries, technical and law enforcement agencies and implementers of health programs to intensify joint efforts to prevent theft of medical drugs.” A preliminary meeting will be held in January to draw up a joint action plan. The Global Fund noted that “in past years, reports and allegations of large-scale theft of new, effective malaria drugs have received particular attention. The medicines, known as Artemisinin-based Combination Therapies (ACTs), are given out for free or very cheaply in public health centers and hospitals in a large number of countries but are sold over the counter in pharmacies and street stalls for US$8 or more per treatment. Typically, more than half of malaria drugs in African countries are not given out by doctors or nurses but are sold over the counter. “Theft of medicines is a problem that affects all institutions investing in health services, and we must clamp down on it,” said Michel Kazatchkine, the Global Fund’s Executive Director. “However, no single institution can act on its own. We can only solve this challenge if we all work together.”

http://www.theglobalfund.org/en/pressreleases/?pr=pr_101210