Title: Liberian Ministry of Health Staff Accused of Systemic Fraud and Misappropriation in Global Fund Grants

Overview

The Office of the Inspector General (OIG) has announced the discovery of a widespread fraud and misappropriation case within the Liberian Ministry of Health (MoH), which is a grant Principal Recipient, following an extensive investigation.

Findings

The OIG found non-compliant expenditures and suspicious activities in 91% of the reviewed expenditures, totaling over $1 million.

Non-Compliant Expenditures

Staff members of the National AIDS Control Program reportedly engaged in fraudulent procurements for vehicle repairs and advertising services.

Implementation of Program Activities

The OIG expressed concerns about the delivery of program activities in three-quarters of the field activities they inspected.

Financial Mismanagement

The MoH overcharged daily subsistence allowances and misused grant funds by providing incorrect allowances and catering expenses.

Lack of Internal Controls

The MoH’s internal controls, policies, and oversight to prevent fraud and misappropriation were deemed insufficient or completely absent.

Global Fund’s Role

The Global Fund, the Fiscal Agent, did not effectively mitigate the risk of fraud and reportedly engaged in conflicts of interest and misappropriation by receiving grant funds for Daily Subsistence Allowances (DSAs) and fuel coupons for activities that did not occur.

Consequences

To address these issues, the Global Fund’s internal controls have been strengthened, and further measures will be implemented. However, the OIG stated that despite being alerted to fraud red flags and other irregularities in MoH-managed grants as far back as 2015, the Global Fund Secretariat failed to report these matters to the OIG during the investigative process.

Reactions

The Global Fund acknowledged the findings and stated that they were taking immediate action to address the situation. The Liberian Ministry of Health has been contacted for comment.