Fraud plagues global health fund backed by Bono, others

As much as two-thirds of some grants for AIDS, tuberculosis and malaria lost to corruption

Irish rock star Bono is among celebrities who have backed the Global Fund to fight AIDS, malaria and tuberculosis. That fund is now under fire for allegations of corruption.
By JOHN HEILPRIN
The Associated Press
updated 1/23/2011 1:06:17 PM ET 2011-01-23T18:06:17

A $21.7 billion development fund backed by celebrities and hailed as an alternative to the bureaucracy of the United Nations sees as much as two-thirds of some grants eaten up by corruption, The Associated Press has learned.
 
Much of the money is accounted for with forged documents or improper bookkeeping, indicating it was pocketed, investigators for the Global Fund to Fight AIDS, Tuberculosis and Malaria say. Donated prescription drugs wind up being sold on the black market.

The fund's newly reinforced inspector general's office, which uncovered the corruption, can't give an overall accounting because it has examined only a tiny fraction of the $10 billion that the fund has spent since its creation in 2002. But the levels of corruption in the grants they have audited so far are astonishing.

Money for anti-AIDS program misspent A full 67 percent of money spent on an anti-AIDS program in Mauritania was misspent, the investigators told the fund's board of directors. So did 36 percent of the money spent on a program in Mali to fight tuberculosis and malaria, and 30 percent of grants to Djibouti.

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