Title: Liberian Ministry of Health Staff Accused of Systemic Fraud in $1.1 Million Global Fund Grants
Subtitle: Office of Inspector General reveals non-compliant expenditures and misappropriation in MoH activities
The Office of the Inspector General (OIG) of the Global Fund has released a report accusing staff of the Liberian Ministry of Health (MoH) of engaging in systemic fraud and misappropriation worth over US$1.1 million 1. In this article, we delve into the details of the investigation and its consequences.
OIG Findings: Fraudulent Expenditures and Lack of Internal Controls
The investigation revealed extensive non-compliance and wrongdoing in reviewed expenditures – 91% of which were deemed non-compliant 1. Several concerning practices were uncovered:
- Fraudulent procurements: The National AIDS Control Program, an MoH division, reportedly underwent fraudulent vehicle repair and advertising service procurements.
- Daily subsistence allowances: Overcharges were rampant for daily subsistence allowances, and catering expenses contained numerous incorrect allocations.
The MoH’s internal controls showed a significant need for improvement, and there was no assurance about effective program delivery in nearly half (three quarters) of the assessed field activities 1.
Fiscal Agent Conflict of Interest
The MoH’s fiscal agent, responsible for implementing internal controls to prevent fraud, was discovered to have engaged in conflicts of interest and misappropriated grant funds by misusing DSA and fuel coupons for non-existent activities 1.
Ignored Red Flags
The Global Fund’s Fiscal Agent became aware of potential fraud suspicions regarding MoH-managed grants as far back as 2015 1, but no report was made to the OIG.
Consequences and Corrective Measures
Following the report’s release, the Global Fund Secretariat has pledged to implement new internal controls to prevent such instances. It acknowledged the missed opportunity to stop these fraudulent activities through timely reporting of red flags1.
MoH management is also taking steps to fortify their internal controls, oversight processes, and reporting systems, effectively preventing future instances of fraud and misappropriation 1.
Justice for the People of Liberia
The people of Liberia have waited long enough for their funds to be used efficiently and transparently, enhancing their health and well-being. With the results of this investigation, it is imperative for both the Global Fund and the Liberian government to take decisive action against those involved in the misappropriation of these essential resources 1.