Global Fund will make corruption and mismanagement losses public

The $22 billion Global Fund to Fight Aids, Tuberculosis and Malaria will make public its losses due to corruption and mismanagement, though it will not release other information sought by critics.

Board members met this week to discuss backlash among major donors after the fund’s internal watchdog found that tens of millions of dollars of grant money was being lost, the Associated Press reports. The fund will not, however, provide other details other details from audits and internal investigations to determine the percentage of the fund’s overall disbursements that are misspent.

"There is a danger that the most negative of the figures reported could be used to create a misleading and sensationalized image, which would overstate the extent of the problem and cause significant damage to the reputation of the Global Fund or the most positive of the figures would be used to down play the seriousness of the problems we are dealing with," the board said, according to the Associated Press.

The AP reported in January that the fund was losing tens of millions of dollars to corruption and mismanagement. This led Germany, Denmark and the European Commission to withhold approximately $457 million in funding, pending reviews of the internal controls of the fund.

The fund provided the AP with documents showing losses of close to $53 million, but did not make public an internal chart obtained by AP showing that an average of eight percent of funding was lost in 12 nations due to undocumented or unauthorized spending or fraud.

The board created an outside panel to help it figure out the best way to report losses in the future. The panel is to be headed by former Botswana President Festus Mogae and former U.S. Health Secretary Michael Leavitt.