Global Fund to reprimand international mosquito net suppliers
On November 14, the Global Fund announced that it suspended the contracts of the two suppliers, Vestergaard Frandsen and Sumitomo Chemical Co., for allegedly engaging in financial wrongdoing in Cambodia. The two companies cooperated with the investigation and took action against the employees involved.
In January, the sanctions panel met and determined the misconduct was relatively severe and resulted in reputation harm to the Global Fund. The panel also found that both suppliers provided substantial assistance during the investigation and both voluntarily initiated reforms after becoming aware of the misconduct.
The Global Fund said the panel developed an innovative and practical approach that both holds the suppliers accountable and creates value for the fund's grant programs in the future.
The panel recommended three conditions for continued engagement with Vestergaard and Sumitomo. The suppliers must each connect with an independent compliance monitor, make a contribution of one million long-lasting, insecticide-treated nets to a principal recipient of a Global Fund grant and subscribe to an anti-bribery pact for manufacturers of the nets while raising industry support for such an agreement.
Mark Dybul, the executive director for the Global Fund, accepted the recommendations and thanked the panel for coming up with an appropriate and constructive approach.
The suppliers agreed to the conditions of continued engagement and the Global Fund lifted the suspension on their contracts.