Just look at how a Global Fund Principal Recipient misbehaved. The Tropical Diseases Foundation follies in the Philippines were featured in Global Fund Observer 116.

Principal Recipients risk being replaced if they act like this.

[him] moderator

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Review of budget versus actual expenditures revealed large variances which were never explained.

Global Fund monies were recorded in various Tropical Diseases Foundation bank accounts, although in its reports to the Fund Tropical Diseases Foundation said these amounts had been disbursed to SRs.

US$1.24 million from Global Fund bank accounts had been transferred to the General Fund, had not been refunded, and had not been used for programme activities.

Tropical Diseases Foundation used $577,000 to purchase two properties. (Tropical Diseases Foundation later refunded the money, after the Fund asked for it back.)

Tropical Diseases Foundation used programme resources to pay catering costs for the birthday party of one of its executives.

Tropical Diseases Foundation billed at higher rates for tests for MDR-TB patients. This resulted in over-billing the Global Fund in the amount of $252,000.

Tropical Diseases Foundation billed some patients for tests for which it had also charged the Global Fund.

There were no policies on how salaries, overheads, etc. should be charged to the various cost centres.

The internal audit unit, with more than 10 staff, was ineffective as most of its staff were involved in the day-to-day management of programme activities.

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