The Global Fund Suspends Nigeria’s AIDS Agency NACA As Officials Embezzled $3.8Million In 5 Years

the global fund suspends nigeria

May 6, 2016 – The Global Fund Suspends Nigeria’s AIDS Agency Over Stolen $3.8Million, TGF Urges Buhari To Prosecute Those Who Embezzled The Fund

The Global Fund Suspends Nigeria’s AIDS Agency NACA As Officials Steal $3.8 Million In 5 Years 

The Global Fund to fight AIDS, TB and Malaria says it is suspending aid to Nigeria’s AIDS agency over evidence that $3.8 million was stolen by its workers and consultants.

Spokesman Seth Faison said Friday that Nigeria’s government has promised to repay the money to the Geneva-based agency and to prosecute suspects.

A report by the fund’s inspector general says seven government workers and three consultants stole the money over five years between 2010 and 2014.

The report said the fraud continued because the National Agency for the Control of AIDS did not have proper audits.

The missing money is 95 percent of the amount budgeted to implement, administer and train users of a web-based reporting platform but a fraction of the $1.4 billion the fund has spent in Nigeria.
Summary of the Audit by Global Fund:

An Office of the Inspector General (OIG) audit of Global Fund grants in Nigeria has identified significant problems in procurement, supply chain, financial and program management. The auditors found discrepancies of over US$4 million between drugs ordered and delivered; US$20 million paid to suppliers without confirmation of delivery; stock-outs of eight months for critical medicines; and a total of US$7.65 million in unsupported expenditures. The Global Fund is reviewing corrective measures, particularly with regard to risk management, identified by the OIG as the root cause of many of the issues.

With more than US$1.4 billion invested since 2003, Nigeria represents the Global Fund’s largest portfolio. Programs to date have contributed to 750,000 people living with HIV/AIDS currently on antiretroviral therapy, 310,000 new smear-positive tuberculosis cases detected and treated and 93.4 million insecticide-treated mosquito nets distributed to prevent the spread of malaria.

Regarding procurement, the OIG found that Principal Recipients, the National Agency for the Control of AIDS and the National Malaria Elimination Program do not monitor the deliveries to the central medical store in Lagos of drugs arriving through the Global Fund’s Pooled Procurement Mechanism (a system that allows the Global Fund to bulk order health commodities at favorable prices). This resulted in discrepancies in antiretroviral drugs deliveries of US$3.7 million from 2013 to September 2015 and US$0.5 million in artemisinin-based combination therapy drugs. The OIG also identified payments amounting to US$20 million made to a procurement agent without confirmation of services rendered or goods delivered.

The auditors found major weaknesses in supply chain management including ineffective controls over inventory management and distribution directly affecting service delivery to patients in Nigeria. Stock-outs lasting 8 months of critical medicines such as antiretroviral drugs and artemisinin-based combination therapies were found in 42 health facilities visited by the OIG. In addition, HIV commodities worth US$5.4 million had expired in the last two years.

Although the OIG noted minor improvements since the introduction of a fiduciary agent in May 2015, financial management controls were found to be inadequate and ineffective. For example, the auditors identified a total of US$7.65 million of unsupported expenses linked to human resources, payment approval processes and advances management.

Significant weaknesses exist in the internal controls around data collection and reporting processes. This resulted in more than 10% of errors between the data recorded at the facility level and data reported to the state coordinator and the Global Fund. The issues identified were mainly for the HIV and malaria programs. Good practice, however, was observed on data recorded for the tuberculosis programs.

The OIG concluded that the Global Fund’s risk management framework in Nigeria is ineffective. The organization is unable to identify, mitigate and monitor the risks effectively. This explains many of the problems identified by the OIG audit. For example, although the Secretariat introduced the Pooled Procurement Mechanism to the Nigeria portfolio, limited preventative controls are in place to ensure that drugs procured through the mechanism are actually delivered and then distributed.

The Secretariat is currently reviewing a number of corrective actions including assessing potential recoverable funds, internal control deficiencies and the grant recipients’ ability to deliver key Global Fund objectives in Nigeria.

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14 thoughts on “The Global Fund Suspends Nigeria’s AIDS Agency NACA As Officials Embezzled $3.8Million In 5 Years

  1. This can only happen in a corrupt country with no tough law, i pity my country shame

    • THERE IS NO SHAME TO NIGERIA!!! GOD BLESS NIGERIA AND PUNISH THOSE RESPONSIBLE FOR THE CRIMINAL ART.

  2. This is very shameful and insensitive that money meant for sick people in such desperate situation could be toyed with knowing that suspension of the funds will impact the needy sick. May God forgive those who caused this disaster.

  3. Corruption every where. When you see the kind of automobiles some Government workers move around with, the question that comes to your mind is “where are they getting all those monies from? honestly,i pity this country.Penalty for corruption in this country now should be a death sentence.

  4. Wow this is so sad. That huge amount in 5years? Corruption seems to be order of the day, everybody is corrupted.

  5. I just weep for this country. Where can we say has not been infected? And we also share in the blame. A forthright man is reckoned as naive these days. If a counsellor, for instance, serves his tenure and leaves office without buying his own car or building his own house, we blame him for being lazy. This goes to show that even amongst those who did not have the opportunity–and amongst us who will still drop comments of disapproval here–are those who would do the very same looting if given the chance.

    • Do that means that there is no honest and person of integrity in Nigeria Metu Nyetu? Speak only for yourself because there few Nigerians if given opportunity to serve will perform beyond expectations. Already, one of such people is serving as our president. If will refuse to collectively tackle and defeat corruption, our nation will witness no social and economic growth and development, and millions of generations to come will suffer greatly in highly competitive world.

  6. The level of heartlessness in naija is humongous, you look every aspect of our lives is filled with evil and deceit. how can anyone do this to their nation? we keep wondering why we are in this state when we are the main cause of our problems. The people that gave this funding to support Nigeria to eradicate diseases are not fools, they know that if they eradicate the diseases it is better for them and everyone. sometimes i really fear Nigerians. most of them you see with big cars and houses are dubious, but they are celebrated in the society. such is our twisted mentality.

  7. Well not surprise everyone in Nigeria is open eye for money. Even some of you writing all these will do same if place in their position. Is disease in our nation. It has been there for century and will never wiped out because is part of the culture. The reason I made this statement is whether any of you would have believed that a woman like Diezani who studied in such prestigious universities would have touched a kobo?

    Sorry for Nigeria. The only way out is to raise Nigeria children out of the nation then bring them to rule in Nigeria. Because they must have acquired good morals from other nations. I have begged God not to allow My girls to marry any Nigerian.

  8. Well said @ Metu. An honest man is deemed to be lazy in Nigeria while a thief is hailed and adored. Not that there are no honest people in that country but the corrupt ones have blindfolded the masses to believe that those who don’t have or have less than they do are lazy. Most of our politicians are criminals and ex 419 operators. When Ohakim was governor of Imo state he was paying Iwuanyanwu 10 million Naira a month as “contractor finance”. What Iwuanyanwu financed nobody knows except that he was the backbone of Ohakim becoming the governor.

  9. People are wicked oo..money to take fight malaria and aids nah wetin some people divert to personal use

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