Global health fund corruption is more than just about money

Since it was created nine years ago, the much-heralded Global Fund to Fight AIDS, Tuberculosis and Malaria has spent $13 billion in what is without a doubt a mission of mercy. As a result of its efforts, millions of people, especially in the underdeveloped world, have been spared the scourge of those diseases.

But now, the Global Fund is at risk of losing major donors as a result of a two-part series by the Associated Press that highlighted serious allegations of corruption on the part of individuals overseeing grants. For instance, 67 percent of the money earmarked for an anti-AIDS program in Mauritania was misspent, as was 36 percent of the money sent to Mali to fight tuberculosis and malaria, and 30 percent of the funds sent to Djibouti. All three countries are in Africa.

The wire service’s stories were based on a report from the newly reinforced inspector general’s office, which uncovered the corruption.

“Much of the money is accounted for with forged documents or improper bookkeeping, indicating if was pocked,” the AP quoted the investigators as saying. “Donated prescription drugs wind up being sold on the black market.”

The denial of drugs to people who are at death’s door makes this more than just another corruption case involving an international organization. Indeed, the Global Fund was created to get around the bureaucracy of the United Nations and to ensure that the medical needs of millions of people are met quickly and effectively.

The reaction from a spokesman for the Fund, Jon Liden, to the reports of corruption does not inspire confidence.

“The messenger is being shot to some extent,” Liden said. “We would contend that we do not have any corruption problems that are significantly different in scale or nature to any other international financing institution.”

If he is suggesting that corruption is simply the cost of doing business, then it’s little wonder that taxpayers in the developed countries, led by the United States, are vocally questioning the monetary aid being given to a broad array of institutions for a variety of causes.

It’s one thing if American dollars sent to Iraq to rebuild the infrastructure disappears; it quite another if money sent to save lives is pocketed by individuals with no consciences.

To be sure, the Global Fund has saved millions of lives — the estimate is 6.5 million since 2002 — by delivering AIDS and TB treatment and handing out millions of insecticide-treated malaria bed nets. But, when millions of dollars cannot be accounted for, the donors are justified in demanding answers.

Withholding pledges

As a result of the Associated Press’ stories, Germany announced it will withhold its $270 million pledge for 2011 pending a full investigation. Germany is the third largest government donor behind the U.S. and France.

Sweden has also withheld its financial pledge for 2011-13.

So long as there are questions about how the grants from the Fund are managed and what safeguards are in place to stop the corruption, the credibility of this important, life-saving program will be at risk.

It isn’t only governments that are financing this global battle. The Bill and Melinda Gates Foundation gives $150 million a year, while the rock star Bono launched a new global brand, (Product) Red, which donates a large share of profits to the Global Fund.