Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-02-15-Speech-2-612-000"

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"This is a very pertinent question on an issue which the Commission takes very seriously and is therefore following closely and with great concern. The Commission is a very strong supporter of the Global Fund to fight AIDS, Tuberculosis and Malaria. The Fund has been very successful and it is my full intention to work with the Fund to solve the issues as soon as possible in order for the Commission to continue to be one of the biggest contributors to the Fund. It is important to underline that the problems identified did not arise from the Fund itself, but in individual countries from the people contracted to implement the programmes. These are countries where very careful attention always has to be paid to avoid such problems. It is public knowledge that the Office of the Inspector General of the Global Fund has been conducting enquiries in respect of the use of USD 4.8 billion in 33 countries. These enquiries have taken place either on a systematic basis or in response to information received on the potential misappropriation of funds. Its inquiry is now complete; in line with common practice, the OIG has issued a report and published it on the website of the Global Fund. This practice has proven effective and transparent in implementing the Global Fund’s stated policy of zero tolerance of corruption. For our part, the Commission has commissioned an independent five-pillar audit of the Global Fund, as required under European Union financial regulations for all organisations benefiting from EU financial support. The audit report delivered in November 2010 expressed the auditors’ overall conclusion that the Global Fund’s internal control environment respects the principles of division of responsibilities and of management control of country and regional financial reporting. So standard mechanisms and controls are in place to ensure that funds received from donors are properly handled. However, the auditors made several suggestions to improve the management of funds in addition to existing risk management strategy. Following this report, my services are currently discussing the needed modifications designed to improve and speed up the Global Fund reform agenda approved on 4 January. We are also undertaking a second audit mission, including country visits, to follow up on the institutional assessment. Through a letter dated 27 January 2011 and a teleconference on 2 February, I have already contacted the Executive Director of the Global Fund, Mr Kazatchkine, to express the urgent need for additional reforms to further strengthen the Fund’s ground management processes and operations. In the meantime, during the Board meeting called on 2 February, the Secretariat of the Global Fund proposed an external review to be carried out by the Global Fund oversight mechanism. This was welcomed by Board members. So in reply to your question as to whether the Commission has considered halting EU funding to the Global Fund, I would inform you that the Commission has notified the Global Fund Executive Director and the Board members that the EU contributions are being put on hold. In parallel, I consider that the European Union, and the Commission in particular, must maintain its overall commitment to the Global Fund objectives, reform process and strategy of alignment to country and health systems. In this respect, the Commission is identifying clear criteria to apply before further contributions to the Global Fund can be resumed. These measures for ensuring prevention and detection of fraud have no implication in the delivery of vital treatment to the patient but, at the same time, understand that we need to have in place new, strengthened control mechanisms very fast, because as time passes, indefinitely holding on to payments is not the best option. We need additional strengthened control mechanisms at country level which will decrease the risk of misappropriation of the funds and can then resume payment. The Commission will, as I said, remain a keen supporter of the Fund because the Fund has achieved fantastic results, but there has been fraud and we need to deal with that fraud appropriately."@en1
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