Uganda’s civil society loses out on Global Funds millions

Uganda’s Finance Ministry will continue being the country’s sole “principal recipient” of Global Fund money.

This is despite a campaign by a civil society coalition for multiple recipients, saying that would improve on governance and prevent a repeat of the 2005 scandal.

At the time, $1.6 million was looted from the Fund’s programmes in the country, leading to a freeze on funding for four months.

A principal recipient receives money directly from the Global Fund and uses it to implement prevention, treatment and care programmes, or disburses the money to sub-recipients that do the work.
The Ugandan government has signed seven agreements for grants worth

$426 million with the Global Fund. The Finance Ministry is the principal recipient of all the monies and PriceWaterHouseCoopers is the local Fund agent.

A mission from Global Fund was in the country last week to submit $24m under round 7 of phase 1. It said seven million bed nets will be delivered next month.

The decision to continue channelling funds through the Finance Ministry was made by the inspector general of the Global Fund to Fight Malaria, Tuberculosis and Aids.

It was, however, qualified by a critical note on the ability of the Finance and Health ministries, as the lead implementors, to manage the funds for health centres — especially outside Kampala.

But the Fund’s inspector general is banking on the Long Term Institutional Arrangement, a new financial management system agreed with the Ugandan government.

The arrangement uses the local budgeting cycle, with the aim of avoiding duplication of funding and roles of institutions.

The Ugandan government also earned credit when four people were convicted in connection with embezzling of funds, or failing to account for about $1.6 million of Global Fund monies.

This factor was considered in retaining the Finance Ministry as the sole principal recipient for the money.

Following the scandal that led to the suspension of Global Fund grants worth $213 million — from August 23 till November 10, 2005 — more people died because they could not get life-prolonging drugs.

Others changed therapy or could not be enrolled onto these drugs for the first time.

At one time, agencies that distribute anti-retroviral drugs said they would stop recruiting new patients, apart from pregnant women.