Malawi refunds Global Fund K400m it misappropritaed

The Malawi’s  National Aids Commission (NAC) has refunded the Global Fund on tuberculosis, Aids and malaria $937 905 (about K403.3 million) following abuse of funds which took place during the implementation of one of the grants in 2010, according to an audit.

A Global Fund audit has revealed the money is said to have been misappropriated through ineligible transactions which had inadequate supporting documentation.

According to a leaked letter from the Global Fund to NAC Executive Director Thomas Bisika, the misappropriated money was discovered following an audit by the Fund’s Office of the Inspector General (OIG) carried between July 1 and September 10, 2010.

NAC boss Thomas Bisika: Refunds money
NAC boss Thomas Bisika: Refunds money

“The OIG noted transactions worth US$3,994,764 that were ineligible and/or not adequately supported and stated that in the absence of adequate supporting documentation these amounts should be refunded,” reads the letter dated February 18, 2014.

The letter co-signed by Global Fund Regional Manager for Central Africa Ronald Tran Ba Huy and RegionalFinance Manager for Africa and the Middle East Eric Boa stated that the refund was in line with a recovery plan proposed by Malawi Global Fund Coordinating Committee (MGFCC).

The refund, however, means the government still has to pay back Global Fund about $1.3 million (K650 million) over an agreed period of time even though the grant period elapsed in January, 2014.

The refund comes at a time when government is squeezed financially after donors withheld about K20 billion in donor funding following revelations of looting of government resources, dubbed cashgate.

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