Title: “GUINEA: OIG Uncovers Multimillion-Dollar Fraud in Global Fund Grants”
Overview
- The Office of Inspector General (OIG) discovered extensive fraudulent activities in 22 of the 26 Sub-sub-recipients identified for suspicious or fraudulent expenditures in Guinea.
- The investigation focused on grants worth millions of dollars from the Global Fund to Fight AIDS, Tuberculosis and Malaria.
Findings
Fictitious NGOs and Siphoning Off Funds
- A staff member at the Partnership for the Protection of Children and their Social Protection (PNPCSP) established four fake Non-Governmental Organizations (NGOs).
- This individual siphoned off grant funds totaling GNF 128.2 million (USD 26,023).
- Nine other Sub-sub-recipients did not carry out any grant activities with the grant money received, totaling GNF 285 million (USD 60,953).
Fabricated Invoices and Unsupported Expenditures
- Nine other Sub-sub-recipients submitting falsified invoices and documentation, justifying grant advances.
- Widespread fabricated invoicing within the administration of the grant.
- PNPCSP staff were involved in falsifying some invoices.
- USD 250,852 in grant expenditures to suppliers could not be substantiated.
Root Causes and Mitigating Factors
- Lack of internal controls and oversight from PNPCSP.
- Widespread political turmoil in Guinea during the grant period, which prevented effective validation.
OIG’s Recommendations and Secretariat’s Response
- Total fraudulent activities totaled USD 416,183.
- The Secretariat restructured the grants, closed certain programs, appointed new Principal Recipients, and implemented a zero-cash policy.
- An international Fiscal Agent was hired to oversee funds allocation and ensure transparency.
Additional Concerns
- Numerous concerns regarding unrelated PNPCSP expenditures and tender processes.
- Measures are in place to mitigate risks and prevent further fraudulent activity.