Prominent international health body, The Global Fund has released a damaging report on the Sierra Leone’s Ministry of Health, revealing over $415,000 meant for malaria and Health Management Information System training were embezzled by staff of the Ministry.
In a report released by the Office of the Inspector General of the Global Fund (OIG), on 6, December, 2022, the group pointed out alleged fraud and collusion in procurement resulted in US$415,148 non-compliant expenditures in selecting catering suppliers for the malaria and HMIS trainings, and gaps in the Fiscal Agent’s oversight role over IHPAU’s procurement activities resulted in delays in identifying fraud.
The Office of the Inspector General revealed that the Integrated Health Project Administration Unit (IHPAU) procurement staff members within the Ministry of Health and Sanitation were involved in fraudulent and collusive practices for both malaria and Health Management Information System training.
“They imitated a competitive selection of suppliers that responded to the Request for Quotation (RFQ). Pre-selected bidders colluded with other suppliers and supplied IHPAU procurement staff with blank invoices. The invoices were then filled in with prices to ensure a certain “winner” would emerge from the three bids per district,” the OIG revealed.
They further disclosed that, “From January to April 2020, IHPAU procured catering suppliers for malaria training courses at a cost of SLE 3.44 billion (US$353,113), financed under SLE-Z-MOHS. Similarly, in August 2020, MOHS conducted training events on how to use the Health Management Information System (HMIS), for which IHPAU procured catering services for SLE 604.78 million (US$62,035) under the same grant.”
The OIG noted that did not find evidence that the scheme was set up for IHPAU procurement staff to solicit kickbacks.
“Nevertheless, by implementing the scheme IHPAU, violates the Code of Conduct for Principal Recipients. The OIG considers the total value of the training (US$415,148) as non-compliant,” they noted.
The Office however noted that in order to mitigate similar risks, the Fiscal Agent now reviews and must approve all IHPAU procurements above US$2,500 in cases where the RFQ method is used.
“Furthermore, the use of caterers is only allowed in exceptional circumstances, and with prior approval by the Global Fund Secretariat. Instead, training participants are paid an allowance for lunch and refreshments through mobile money,” they noted.
The Office of the Inspector General of the Global Fund (OIG) is responsible to safeguard Global Fund’s assets, investments, reputation and sustainability by ensuring that it takes the right action to end the epidemics of AIDS, tuberculosis and malaria.
Through audits, investigations and advisory work, it promotes good practice, enhances risk management and reports fully and transparently on abuse.