The Global Fund said it accepted recommendations of its Sanctions Panel to reprimand two international suppliers of mosquito nets and to set mandatory terms for continued engagement in the future. The Sanctions Panel, composed of independent legal, compliance and ethics experts, recommended three conditions for continued engagement with the two suppliers, Vestergaard Frandsen and Sumitomo Chemical Co. First, each supplier must engage an independent compliance monitor to assess the supplier’s internal controls and then to verify the implementation of improvements and report back to the Global Fund by 30 June 2014, with a second progress update by the end of 2014. Second, each supplier would be obligated to make a contribution of 1 million long-lasting insecticide-treated nets to a Principal Recipient of a Global Fund grant. Third, each supplier would need to subscribe to an anti-bribery pact for manufacturers of long-lasting insecticide-treated nets, and commit to raising industry support for such a pact. Mark Dybul, the Executive Director of the Global Fund, accepted the recommendations and thanked the panel for determining an appropriate response and a constructive, forward-looking approach. The outcome is geared toward ensuring that all suppliers are held accountable for their actions and also toward encouraging ethical behavior.
The global Fund said that ach supplier has agreed to these conditions for continued engagement, and the Global Fund has lifted the suspension on their contracts