Jaramillo outlines Global Fund overhaul
The fund was formed in 2002. Since that time, it has channeled $15.1 billion to 150 countries for treatment, drugs and preventive measures. The fund has been harmed by a slowdown in donations and its own disclosures of misuse and management shortcomings. In November, the fund disclosed that it would not have enough money to fund new grants until 2014, the Wall Street Journal reports.
The fund projected that between 2011 and 2013, it would receive $11.7 billion, which included $2.5 billion in projected contributions that have not been made.
"This should never have happened," Jaramillo said, according to the Wall Street Journal. "Uncertainty is a reality. You have to project the most likely scenario and the most horrible scenario. That's what we do in business every day."
Jaramillo's plan to help the fund includes the establishment of a disciplined private-sector governance process for the management of grants, an attempt to raise more money and to improve risk management from country to country. Last week, the fund received a major contribution of $750 million from the Bill & Melinda Gates Foundation.
"We detest the fact that some of the already small amount of aid money earmarked for the poor is misused, but it would be deplorable if relatively rare events of corruption were to get more attention than the millions of lives the Global Fund has saved," Bill Gates, the co-chair of the Bill & Melinda Gates Foundation, said, according to the Wall Street Journal. "The Global Fund is one of the most effective ways we invest our money every year."