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Global Fund re-confirms freezing aid to MoH

Global Fund re-confirms freezing aid to MoH
By Moses Kuwema and Florence Bupe
Fri 18 June 2010, 04:01 CAT

THE Global Fund has re-confirmed freezing on cash disbursements to the Ministry of Health (MoH). According to a statement released on Wednesday, the Global Fund decided to clarify its actions as recent media reports had caused confusion about the state of its funding to Zambia.

The Global Fund stated that it stopped disbursing money for grants to the Ministry of Health since August last year after it found evidence of expenditures that could not be accounted for.

“However, around US$17 million of a total of US$137 million in affected funds originally meant for the Ministry of Health has been disbursed through other channels to ensure that there is no disruption of lifesaving services. An additional US$180 million in Global Fund grants implemented by civil society organisations in Zambia are unaffected by this freeze,” the statement read.

The Fund stated that United Nations Development Programme (UNDP) would take over the management of the grants originally provided to the Ministry of Health and full grant activities were expected to resume within the next two months.

The Fund stated that the freeze in disbursement came after Zambian authorities last year uncovered fraud within its health ministry.

“Further investigations by the Global Fund showed that the Ministry of Health was not able to safely manage grants. The organisation has demanded the return of US$8 million in unspent funds from the Ministry of Health,” read the statement.

The Fund also demanded that Zambia takes action against individuals found to be involved in the unaccounted for expenditures that led to the freezing of grant disbursements.

But Ministry of Health spokesperson Dr Reuben Mbewe on Wednesday said the Global Fund delayed the disbursements of all grants to pave way for the Global Fund audit.

Dr Mbewe said during this period Global Fund allowed Ministry of Health to continue procuring drugs such as anti-malarials, ARVs and TB drugs.

“After the completion of the investigations Global Fund is working with Ministry of Health together with UNDP to build capacity of the ministry especially in procurement and finance as per agreed joint governance action plan. The ministry with Global Fund and UNDP are working on modalities through which Ministry of Health will start accessing funds through UNDP,” Dr Mbewe said. “After two years, Ministry of Health will start accessing the funding directly. Instead of being principle recipients, we have now become sub-recipients. The round four grants for malaria and HIV which were due to expire in October have been extended for one year to make up for the delay in disbursement.”

Dr Mbewe said Ministry of Health had been invited to apply for the Global Fund round 10 funding because they still had confidence in Zambia.

“And because they know that we are working on strengthening the procurement and financial systems. What I have explained is in relation to last year’s alleged embezzlement which is before the courts of law,” said Dr Mbewe. “It has nothing to do with new developments within the last year as mentioned in one of the dailies that there is strong evidence of continued fraudulent activities.”

The Global Fund suspended disbursements to Zambia’s Ministry of Health because of strong evidence of continued fraudulent activities.

The decision was made at its 21st board meeting in Geneva held between April 28 and 30, 2010. The Global Fund stated that it would not proceed with signing any new grants with the Ministry of Health until it was satisfied that the situation was under control and adequate measures were in place to allow for a return-to-normal arrangements.

Labels: CORRUPTION, DONORS, MINISTRY OF HEALTH

posted by MrK @ 5:33 AM